LATEST REGULATIONS ON UNEMPLOYMENT INSURANCE (UI) – EFFECTIVE FROM JANUARY 1, 2026

Unemployment Insurance (UI) is a policy designed to support employees who lose their jobs, helping them stabilize their lives and return to the labor market as soon as possible.
Employees are only eligible for unemployment benefits if they fully meet the conditions prescribed under the Law on Employment 2025.

Conditions for Receiving Unemployment Benefits

Pursuant to Article 38 of the Law on Employment 2025, employees are entitled to unemployment benefits when fully meeting the following conditions:

• Lawful termination of the labor contract:
  The employee must terminate the labor contract in accordance with the law and must not fall under cases of illegal unilateral termination or retirement pension entitlement.
• Contribution period to unemployment insurance:
  The employee must have paid unemployment insurance for at least 12 months within the 24 months prior to termination of employment.
• Timely submission of application:
  The application for unemployment benefits must be submitted to the Employment Service Center within 03 months from the termination date.
• Unemployment status:
  After 15 days from the date of submitting the application, the employee has not yet found a new job.

Unemployment Benefit Entitlements

According to Article 39 of the Law on Employment 2025:

• Monthly benefit amount:
  Equal to 60% of the average monthly salary used as the basis for unemployment insurance contributions during the last 6 months before termination. 

However, the maximum amount shall not exceed five times the regional minimum wage announced by the Government, applicable in the last month of unemployment insurance contributions.

• Benefit duration:
  Up to 12 months, depending on the total period of unemployment insurance contributions.
• Commencement of benefits:
  Benefits are paid starting from the 11th working day from the date the complete application dossier is submitted.

Practical Significance

• For employees:
  Helps stabilize income during unemployment and provides opportunities for vocational training or career transition.
• For employers:
  Reduces pressure when workforce downsizing is unavoidable and supports workforce restructuring.
• For society:
  Contributes to labor market stability and limits prolonged unemployment.

Conclusion

Unemployment insurance is an essential policy that supports employees during periods of job loss, helping them stabilize their income and return to the labor market. To be eligible for benefits, employees must fully comply with the requirements regarding contribution periods, application procedures, and submission deadlines. Benefit levels are calculated based on insured salaries, ensuring practical and fair support. In addition to financial assistance, employees also receive health insurance coverage, job placement support, and career counseling. Therefore, understanding unemployment insurance regulations enables employees to better protect their lawful rights, while employers must also fulfill their contribution obligations to ensure long-term employee welfare.

For further consultation, please contact TPM’s specialist:
Ms. Đỗ Thị Thu Quỳnh
Head of HR & Payroll Services
📧 quynh.do@tpm.com.vn

Reference:
The Employment Law No. 74/2025/QH15 will take effect from January 1, 2026.