'Low subsidy, unfair benefit period'
Mr. Dinh Viet B., a worker in Ho Chi Minh City, has paid unemployment insurance for more than 13 years, but when he quit his job, he was only entitled to a maximum of 12 months of benefits, which is the highest fixed benefit level according to current regulations. For the period of payment exceeding 12 years, Mr. B. was not allowed to add or reserve for the next time, which makes workers who have participated in unemployment insurance for a long time and contributed a lot like Mr. B. feel that it is unfair.
“The hard limit of 12 months of maximum benefit period inadvertently causes long-term contributors to receive less than their actual contributions. This eliminates the incentive to stick with the insurance system,” said Mr. B.
In addition, Mr. B. also said that the benefit level is only 60% of the average salary of the last 6 months of payment and does not exceed 5 times the regional minimum wage, which is too low. In fact, most workers pay at the minimum level, so they only receive about 3 - 4 million VND/month when unemployed.
This level is not enough to cover basic living expenses such as rent, electricity, water, raising children, not to mention learning a trade or finding a new job.
“Workers like me receive a few million each month but spend almost all of it on rent and living expenses. How can we raise our children or manage during prolonged unemployment?” said Mr. B.
Ms. Ho Thi Kim Ngan, Deputy Head of Labor Relations Department ( Vietnam General Confederation of Labor ) said that the maximum unemployment insurance rate of 60% of the salary paid for social insurance seems reasonable, but if converted into actual money, just over 3 million VND per month is too little for a worker's family to live on when losing their job.
According to Ms. Ngan, most workers are forced to find new jobs immediately or switch to freelance work such as driving technology cars, selling goods on the street... Very few people have the conditions to learn a new profession.
If the benefits are only symbolic and not enough to sustain life, the Unemployment Insurance policy will hardly be able to motivate workers to re-enter the labor market.
Proposal to increase the benefit level
In its comments on the amendment to the Law on Employment, the Vietnam General Confederation of Labor proposed raising the benefit level to 75% of the average salary contributing to Unemployment Insurance, while removing the maximum benefit period of 12 months, switching to calculating based on the number of years of insurance contribution to ensure fairness and proportionality with the contribution level.
By the end of 2024, the Unemployment Insurance Fund has an accumulated balance of over VND 64,300 billion, with about 16 million participants, accounting for 34% of the working-age workforce.
According to labor expert Bui Sy Loi, former Vice Chairman of the National Assembly 's Committee on Social Affairs, the Unemployment Insurance policy needs to be adjusted in the direction of maximizing benefits for workers, on the basis of a reasonable balance of the Fund's resources. There should not be a large surplus while unemployed workers only receive a level that is not enough to cover their living expenses. Failure to effectively disburse the fund while workers need support is contrary to the humane goal of social security policy.
Unemployment benefits are not only a "lifesaver" but also a motivation for workers to feel secure and dedicated, thereby improving labor productivity and helping businesses retain quality human resources.
Mr. Bui Sy Loi said that we should review the regulation on the maximum unemployment insurance benefit of 12 months. Because the principle of contribution - benefit must be implemented fairly. The longer the employee contributes, the more benefits they must receive, not all can be equal.
“The fixed 12-month period is unreasonable and does not accurately reflect the long-term contribution of many workers - especially workers, civil servants, and employees who have worked for decades,” said Mr. Loi.
According to labor experts, instead of limiting the time to receive benefits, the benefit period should be calculated based on the number of years of unemployment insurance contributions.
For example, each year of contribution is equivalent to 1 month of benefit. An employee with 15 years of participation can receive 15 months of benefit, instead of just 12 months as currently regulated.
This calculation method ensures fairness, encourages workers to participate in long-term unemployment insurance, and increases confidence in social security policies.
Deeply involved in vocational training
Mr. Bui Sy Loi also noted that Unemployment Insurance is essentially a short-term fund, with preventive and supportive nature. However, if it only stops at subsidy and payment during unemployment, it is not enough.
"I still expect this fund to participate more deeply in vocational retraining, helping to maintain jobs and retain workers in the market," said Mr. Loi.
He said that in the context of a constantly changing labor market, especially due to the impact of automation, digital transformation and economic recession, it is inevitable that workers will be replaced or lose suitable skills.
However, instead of waiting to lose a job and then receiving unemployment benefits, the Unemployment Insurance Fund should be more proactive in preventing unemployment, through retraining and skills improvement programs.
Source: https://baohaiduong.vn/con-hon-64-000-ty-chua-chi-lao-dong-that-nghiep-van-nhan-tro-cap-chua-du-song-413144.html
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