1. What is Unemployment Insurance?

Unemployment insurance is a system that supports workers when they lose their jobs by providing income security and helping them find new employment opportunities. This policy protects workers who have contributed to the unemployment insurance fund for a specified period.

2. Who is required to participate in Unemployment Insurance?

According to the Social Insurance Law in Vietnam, all workers with a labor contract of 3 months or more are required to participate in unemployment insurance. This includes workers with both definite-term and indefinite-term labor contracts.

Specific participants:

• Vietnamese employees working under a labor contract of 3 months or more.
• Employers in Vietnam are responsible for paying unemployment insurance contributions on behalf of their employees.

3. Conditions for receiving Unemployment Insurance benefits

To be eligible for unemployment benefits, workers must meet the following conditions:

• The labor contract has been lawfully terminated.
• The worker has paid unemployment insurance for at least 12 months within the 24 months before contract termination (applies to both definite and indefinite-term contracts).
• The worker has submitted a claim for unemployment benefits at a job service center within 3 months of contract termination.
• The worker has not found a new job within 15 days after submitting the claim (except in special cases such as military service, police service, attending school, etc.).

4. Benefits of participating in Unemployment Insurance

Workers participating in unemployment insurance are entitled to the following benefits:

• Unemployment allowance: Monthly allowance equal to 60% of the average monthly salary used for unemployment insurance contributions during the last 6 months before unemployment.
• Job search assistance: Access to free job counseling and job placement services from job service centers.
• Vocational training support: Workers can receive financial assistance for vocational training if they wish to change careers.

5. Procedures for receiving Unemployment Insurance

To receive unemployment benefits, workers need to prepare the following documents:

• Application for unemployment benefits.
• Original or certified copy of the terminated labor contract or decision of resignation.
• Social insurance book with the period of unemployment insurance contributions confirmed.
• Citizen identification card.

After preparing the necessary documents, workers should submit them to a job service center. The application will be processed within 15 to 20 working days.

6. Unemployment Insurance contribution rates

The current contribution rates for unemployment insurance are as follows:

• Employee: Contributes 1% of their monthly salary.
• Employer: Contributes 1% of the employee’s salary fund.

7. Important notes on participating in Unemployment Insurance

• Workers must submit their applications within 3 months from the date of labor contract termination to ensure their benefits.
• After receiving benefits, workers must regularly report their job search status as required by the job service center.

Conclusion:

Unemployment insurance is an essential benefit that workers should not overlook. Understanding the process, conditions, and procedures for claiming unemployment insurance will help protect your rights when facing the risk of job loss.

If you need assistance in the process of filing for unemployment insurance, do not hesitate to contact TPM’s professional team. We are always ready to accompany you.

Do Thi Thu Quynh – Head of Payroll and HR services – quynh.do@tpm.com.vn

References:

• Social Insurance Law No. 58/2014/QH13 dated November 20, 2014
• Employment Law No. 38/2013/QH13 dated November 16, 2013
• Decree No. 28/2015/ND-CP dated March 12, 2015
• Decree No. 61/2020/ND-CP dated May 29, 2020