1. Concept

Unemployment insurance (UI) is a social security program that provides support to workers who have lost their jobs, helping them have a temporary source of income to cover living expenses and have time to find new employment.

2. Participants

Workers

• Have a labor contract or employment contract of indefinite duration;
• Have a labor contract or employment contract of definite duration;
• Have a seasonal labor contract or a contract for a specific job of a duration from 03 months to less than 12 months.

Employers

• State agencies, public service units, people’s armed forces units;
• Political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations;
• Foreign agencies, international organizations operating in Vietnam;
• Enterprises, cooperatives, households, business households, cooperatives, other organizations
• Individuals who hire or employ labor under the aforementioned employment contracts or labor contracts.

3. Conditions for Receiving Unemployment Insurance

Have terminated a labor contract or employment contract, except for the following cases:

• The worker unilaterally terminates the labor contract or employment contract in violation of the law.
• Receiving monthly pension, disability allowance.

Have paid unemployment insurance

• From 12 months or more in the 24 months before terminating a fixed-term/indefinite labor contract.
• From 12 months or more in the 36 months before terminating a seasonal labor contract or a contract for a specific job of a duration from 03 months to less than 12 months.

Have submitted an application for unemployment benefits at the employment service center established by the state management agency: on employment within 03 months, from the date of termination of the labor contract or employment contract.

Have not found a job after 15 days, from the date of filing an application for unemployment insurance, except for the following cases:

• Performing military service, public security duty;
• Going to school for a period of 12 months or more;
• Enforcing the decision to apply measures to send to reformatory schools, compulsory education institutions, compulsory drug rehabilitation centers;
• Detained; serving a prison sentence;
• Settling abroad; going to work abroad under contract;
• Death.

4. Regime When Participating in Unemployment Insurance

Unemployment benefits: Help workers have a temporary source of income to cover living expenses during the time they are looking for a new job.

Support for consulting and job referrals: Help workers find jobs that match their abilities and needs.

Vocational training support: Help workers improve their vocational skills to meet the demands of the labor market.

Support for training, retraining, and upgrading of vocational skills to maintain employment for workers: Help workers update their specialized knowledge to maintain and develop their employment.

5. Duration of Unemployment Insurance Benefits

The duration of unemployment benefits is calculated based on the number of months of UI contributions, specifically:

• For every 12 months to 36 months of contributions, receive 3 months of unemployment benefits.
• After that, for every additional 12 months of contributions, receive an additional 1 month of unemployment benefits, but not exceeding 12 months.

6. Unemployment Insurance Contribution Rates

Workers contribute 1% of their monthly salary.

Employers contribute 1% of the payroll of workers participating in the program.

7. Unemployment Insurance Benefit Levels

The monthly unemployment benefit level is 60% of the average monthly salary of the 6 consecutive months of UI contributions before unemployment, but not exceeding 5 times the minimum regional wage for workers who participate in UI under the wage regime decided by the employer at the time of termination of the labor contract or employment contract.

The specific unemployment benefit level is calculated as follows:

• Average salary: Take the total amount of salary paid for UI contributions in the 6 consecutive months before unemployment and divide it by the number of months of UI contributions in those 6 months.
• Maximum allowance level: 5 times the prescribed regional minimum wage at the time of workers resignation.

8. Unemployment Insurance Enrollment and Benefit Procedures

Enrolling in Unemployment Insurance

• Businesses participating in compulsory social insurance contributions for workers will enable workers to participate in unemployment insurance.
• The UI enrollment process is conducted at the Social Insurance agency in the worker’s place of residence.

Claiming Unemployment Benefits:

• Workers must submit an application for unemployment benefits at the employment service center in their place of residence within 3 months from the date of termination of their labor contract or employment contract.
• The application for unemployment benefits includes:
  • Application form for unemployment benefits (Form No. 03 issued with Circular 28/2015/TT-BLDTBXH dated July 31, 2015).
  • Social Insurance book.
  • Original or certified copy of one of the following documents confirming the termination of the labor contract or employment contract (Decision on termination of employment, decision on dismissal, labor contract or employment contract that has expired or completed work according to the labor contract, etc.).

9. References

• https://luatvietnam.vn/bao-hiem/bao-hiem-that-nghiep-563-19389-article.html#demuc193890
• https://thuvienphapluat.vn/chinh-sach-phap-luat-moi/vn/ho-tro-phap-luat/tu-van-phap-luat/36427/bao-hiem-that-nghiep-toan-bo-quy-dinh-can-biet-2021
• https://ebh.vn/bao-hiem-that-nghiep/dieu-kien-huong-bao-hiem-that-nghiep
• https://luatminhkhue.vn/che-do-va-dieu-kien-huong-bao-hiem-that-nghiep.aspx