Regulations on unemployment insurance regime in Vietnam

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Regulations on unemployment insurance regime in Vietnam

Unemployment insurance is one of the social insurance regimes established for the purpose of supporting unemployed workers who cannot find a job in the short term with an expense to cover their lives. The following article will point out the notable points about this mode.

Subjects required to participate in unemployment insurance

Employees must participate in unemployment insurance when working under a labor contract or a working contract as follows:

a) An employment contract or an indefinite term employment contract;

b) Labor contract or working contract with definite term;

c) Seasonal or job-specific labor contracts with a term from full 3 months to less than 12 months.

In case the employee enters into and is performing many labor contracts specified in this Clause, the employee and the employer of the first signed labor contract are responsible for participating in unemployment insurance.

Regulations on participating in unemployment insurance

1. Employers must participate in unemployment insurance for employees at a social insurance organization within 30 days from the effective date of the labor contract or working contract.

2. Every month, the employer pays unemployment insurance premiums at the rate specified at Point b, Clause 1, Article 57 of the Employment Law 2013 and deducts each employee’s salary according to the rate specified at Point a, Clause 1, Article 57 of the Employment Law 2013 to contribute at the same time to the Unemployment Insurance Fund.

3. Based on the surplus of the Unemployment Insurance Fund, the State shall transfer support funds from the state budget to the Fund at the rate prescribed by the Government in Clause 3, Article 59 of the Employment Law 2013.

Get unemployment benefits

1. Within 03 months from the date of termination of the labor contract or working contract, the employee shall submit the application for unemployment allowance at the employment service center appointed by the state management agency in charge of the employment.

2. Within 20 days from the day on which the employment service center receives a complete dossier, the competent state agency shall issue a decision on unemployment allowance; If the employee is not eligible for unemployment benefit, he/she must reply in writing to the employee.

3. The social insurance organization shall pay unemployment benefits to employees within 5 days from the date of receipt of the decision on unemployment allowance.

Conditions for receiving unemployment benefits

Employees specified in Clause 1, Article 43 of the Employment Law 2013 who are paying unemployment insurance premiums are entitled to unemployment benefits when fully meeting the following conditions:

1. Termination of labor contract or work contract, except for the following cases:

a) The employee unilaterally terminates the labor contract or work contract illegally;

b) Receive monthly pensions and allowances for loss of working capacity;

2. Having paid unemployment insurance premiums for full 12 months or more within 24 months before terminating the labor contract or working contract, for the cases specified at Points a and b, Clause 1, Article 43 of the Employment Law 2013; have paid unemployment insurance premiums for full 12 months or more during the 36 months before the termination of the labor contract, for the case specified at point c, clause 1, Article 43 of the Employment Law 2013;

Unemployment benefits

1. The monthly unemployment allowance level is equal to 60% of the average monthly salary on which unemployment insurance premiums are based of the six preceding months before unemployment, but must not exceed 05 times the base salary for employees in subject to the salary regime prescribed by the State or not exceeding 05 times the regional minimum salary as prescribed by the Labor Code for employees who pay unemployment insurance according to the salary regime set by the employer at the time of termination of the labor contract or working contract.

2. The unemployment benefit period is calculated according to the number of months of paying unemployment insurance premiums, every full 12 months to full 36 months, they will be entitled to 03 months of unemployment benefits, after that, every additional 12 months of full payment will receive an additional 01 month of unemployment allowance but not exceeding 12 months.

3. The time to receive unemployment benefits is counted from the 16th day from the date of submission of a complete application for unemployment benefits as prescribed in Clause 1, Article 46 of the Employment Law 2013.

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