Problems in resolving unemployment insurance regime

Although they have paid unemployment insurance for more than 12 years, some people have their excess months of payment reserved, while others do not due to different instructions from specialized agencies.

Vietnam Social Security has just sent a document to the Ministry of Labor, War Invalids and Social Affairs requesting guidance on reserving the benefit period for employees who have paid unemployment insurance for more than 144 months. Over the past year, this agency has sent two documents requesting guidance on the same content, the first time in October 2022.

Workers complete procedures to receive unemployment benefits at the Hanoi Employment Service Center, July 2023. Photo: Hong Chieu — Workers complete procedures to receive unemployment benefits at the Hanoi Employment Service Center, July 2023. Photo: *Hong Chieu*

The current law stipulates that the payment period to receive unemployment benefits is the total number of consecutive or discontinuous payment months accumulated from the time the employee joins the labor contract until the time the contract is terminated without receiving the regime. Those who pay from 12 months to less than 36 months will receive three months of benefits, then for every additional 12 months of payment, one month of benefits will be added, up to a maximum of 12 months. Thus, employees who pay 144 months (12 years) of unemployment insurance will receive the maximum benefits.

The unemployment insurance policy has been implemented since January 1, 2009. If employees participate continuously until January 1, 2021, they will accumulate 144 months of contributions to receive maximum benefits when they quit their jobs. Many people who have paid for more than 144 months and then quit their jobs wonder how the excess months of unemployment insurance contributions will be resolved. Therefore, localities must ask the relevant agencies.

In a document responding to the Thua Thien Hue Provincial Employment Service Center (the unit that pays unemployment insurance benefits to workers) in May 2021, the Department of Employment under the Ministry of Labor, War Invalids and Social Affairs stated that "the payment period exceeding 144 months is determined as the payment period but the benefit has not been settled" (meaning it is reserved and recorded on the system).

Based on this guidance, the Thua Thien Hue Employment Service Center and other provinces and cities have paid a maximum of 12 months of benefits and reserved the remaining payment period. Statistics show that nationwide, 20,710 people have received the maximum unemployment benefits and reserved the excess payment period, calculated from the beginning of 2021 to mid-August 2022.

Local social insurance agencies also reconfirm the unemployment insurance payment period for employees because this is one of the conditions to determine whether that person is eligible to receive 1.8-3.3 million VND from the 38,000 billion VND package of the Unemployment Insurance Fund issued in September 2021 or not.

Benefits are based on the number of months of contributions to the VND38,000 billion package from the Unemployment Insurance Fund to support workers affected by Covid-19. Graphics: Ta Lu — Benefits are based on the number of months of contributions to the VND38,000 billion package from the Unemployment Insurance Fund to support workers affected by Covid-19 issued in September 2021. Graphics: *Ta Lu*

By August 15, 2022, the Department of Employment continued to send an official dispatch to the Department of Labor, War Invalids and Social Affairs of provinces and cities, stating that people who have paid for more than 144 months will only receive a maximum of 12 months of unemployment benefits and will not be able to reserve the remaining surplus months.

Problems arise because some provinces do not reserve the remaining months of payment and some provinces still reserve the remaining months of payment for workers who have received benefits for up to 12 months. This situation makes it impossible for the social insurance sector to confirm the unified unemployment insurance payment period on the system for the group of workers who have participated for more than 12 years.

Therefore, Vietnam Social Security has requested the Ministry of Labor, War Invalids and Social Affairs to soon provide unified guidance, because many people who have participated for more than 12 years have received benefits for the next time. If this is not resolved, it will cause difficulties in collecting benefits. The inconsistent implementation across the country also causes inequality for workers because some are retained and others are not.

While waiting for instructions, Vietnam Social Security temporarily does not reserve all cases of unemployment insurance participation for more than 12 years to receive maximum benefits from 2021.

Unemployment insurance is a system that partially compensates workers' income when they lose their jobs, supports them in learning a trade, maintaining or finding a new job. According to regulations, workers pay 1% of their monthly salary, and businesses pay 1% of the monthly salary fund of the total number of workers participating in unemployment insurance.

The monthly unemployment benefit is equal to 60% of the average monthly salary for unemployment insurance contributions of the 6 consecutive months before leaving work, not exceeding 5 times the basic salary or regional minimum wage. Within 3 months from the date of termination of the labor contract, the employee must submit an application for unemployment benefits to the provincial or municipal Employment Service Center to complete the procedures.

By the end of 2022, the Unemployment Insurance Fund balance is estimated at VND 59,300 billion, and is expected to increase to more than VND 62,400 billion this year.

Hong Chieu

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