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| Workers complete procedures to receive unemployment insurance. (Photo: PV/Vietnam+) |
The revised Law on Employment has just been passed by the National Assembly . Accordingly, the regulations on maintaining the monthly unemployment benefit level equal to 60% of the average monthly salary for unemployment insurance contributions of the last 6 months.
Contracts of 1 month or more must pay unemployment insurance
The revised Law on Employment has added subjects participating in unemployment insurance, including employees with a labor contract with a term of 1 month or more (currently 3 months or more).
Part-time workers whose monthly salary is equal to or higher than the minimum salary used as the basis for compulsory social insurance contributions are also eligible for unemployment insurance. The addition of this category ensures consistency with the Social Insurance Law 2024.
In addition, the Law also assigns the National Assembly Standing Committee to decide on unemployment insurance participation for subjects other than those specified but having stable and regular jobs and incomes based on the Government's proposal in accordance with the socio -economic development conditions of each period. Thus, the subjects participating will be adjusted according to the Government's proposal, some subjects such as technology drivers, online workers... may also be subjects participating in unemployment insurance in the near future.
Employees who quit their jobs are entitled to unemployment benefits, except in the following cases: Employees unilaterally terminate their labor contracts illegally according to the provisions of the Labor Code; employees who quit their jobs when they are eligible for pension. This provision does not change compared to current law.
Unemployment benefit level remains at 60%
The newly passed Law on Employment stipulates that the monthly unemployment benefit is equal to 60% of the average monthly salary for unemployment insurance contributions of the 6 most recent months of unemployment insurance contributions before the termination of the labor contract, work contract or termination of employment, but not exceeding 5 times the regional minimum monthly wage.
Thus, the level and duration of unemployment benefits remain the same as current regulations. Previously, there was a proposal to increase the monthly unemployment benefit level to a minimum of 65% and allow the Government to adjust it up to a maximum of 75% in the event of a large-scale economic crisis or epidemic. However, the recently passed amended Employment Law remains unchanged and does not increase it.
The National Assembly Standing Committee has reviewed and found that the surplus of the Unemployment Insurance Fund in the past period was mainly accumulated from the previous period, due to annual support from the State Budget, when the number of beneficiaries was still small. However, from 2020 to now, the annual revenue and expenditure of unemployment insurance are balanced.
According to the experience of countries that have successfully implemented unemployment insurance or employment insurance policies (Canada, Korea, Japan, Thailand, etc.) and international standards on unemployment insurance, the unemployment benefit level is not less than 45% of previous income or not less than 45% of the prescribed minimum wage or the salary of a normal worker but not less than the minimum basic living standard; the minimum unemployment benefit period is 12 weeks (03 months) within a 12-month period.
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| The regulation on the duration of unemployment benefits (12 months) and the maximum level of unemployment benefits aims to encourage workers to find jobs and return to the labor market. (Photo: PV/Vietnam+) |
The Labor Code (Articles 47 and 48) stipulates the responsibility of employers in paying severance allowance to employees who have worked regularly for 12 months or more (each year of work is paid 1/2 month's salary) and unemployment allowance to employees who have worked regularly for them for 12 months or more (each year of work is paid 1 month's salary) but must be at least equal to 2 months' salary.
The benefit level is 60% of the average monthly salary for unemployment insurance contributions for 3 months, which is relatively consistent with international practice and the benefits that employees receive when they lose their jobs according to current regulations.
“This level ensures that workers can reduce difficulties and stabilize their lives during unemployment until they find a new job; in accordance with the contribution-benefit principle and the ability to balance revenue and expenditure of the Unemployment Insurance Fund,” the National Assembly Standing Committee stated.
Although there is no adjustment in the level of benefits, the time for receiving unemployment benefits under the amended Law on Employment has been adjusted earlier. Accordingly, the time for receiving benefits is the 11th working day from the date of submitting a complete application for unemployment benefits instead of the 16th working day as currently prescribed.
Encourage workers to return to job search
The new Law on Employment stipulates that the period of unemployment benefits is calculated based on the number of months of unemployment insurance contributions. For every 12 to 36 months of contributions, one will receive 3 months of unemployment benefits. After that, for every additional 12 months of contributions, one will receive 1 more month of unemployment benefits, but the maximum period of unemployment benefits is 12 months.
This regulation on the maximum period of unemployment insurance benefits is similar to the current regulation, although there was a previous proposal to amend it in the direction of not limiting the period of unemployment benefits to 12 months but calculating it based on the number of months of unemployment insurance contributions until the employee is no longer eligible for unemployment benefits.
Explaining the maintenance of the regulation on unemployment benefits for a maximum of 12 months, the National Assembly Standing Committee said that unemployment insurance is a short-term insurance with high risk sharing. The payment of unemployment benefits aims to support part of the income of workers when they face employment risks, so it is necessary to regulate the duration and maximum level of unemployment benefits to ensure the ability to pay unemployment insurance benefits from the fund.
According to the National Assembly Standing Committee, the regulation of the duration of unemployment benefits (12 months) and the maximum level of unemployment benefits aims to encourage workers to find jobs and return to the labor market instead of waiting for unemployment insurance to run out.
Vietnam+
Source: https://baodanang.vn/xa-hoi/202506/luat-viec-lam-moi-mo-rong-doi-tuong-giu-nguyen-muc-huong-tro-cap-that-nghiep-4009684/
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