New developments in unemployment insurance policy.

February 28, 2015 10:42

Expanding the scope of eligible participants, supplementing regulations on eligibility conditions and benefit levels for unemployment benefits, etc., are some of the significant changes to unemployment insurance policies stipulated in the Employment Law, which came into effect on January 1, 2015. Ms. Nguyen Thi Hai Van, Director of the Employment Department - Ministry of Labour, Invalids and Social Affairs, provided information on these new points.

Expanding the scope of mandatory unemployment insurance participation.

For workers employed under seasonal or fixed-term employment contracts lasting from 3 months to less than 12 months as stipulated by the Employment Law, participation in unemployment insurance is mandatory.

In cases where an employee enters into and is performing multiple employment contracts, the employee and the employer of the first employment contract entered into are responsible for participating in unemployment insurance.

Pensioners and domestic workers are not required to participate in unemployment insurance..

Employers subject to mandatory unemployment insurance participation include state agencies, public service units, people's armed forces units; political organizations, socio-political organizations, socio-professional organizations, social organizations, social-professional organizations; foreign agencies and organizations, international organizations operating in Vietnam; enterprises, cooperatives, households, business households, partnerships, other organizations and individuals who hire or employ workers under work contracts or labor contracts as stipulated in Clause 1, Article 43 of the Employment Law.

Abolish the unemployment registration requirement.

Administrative procedures will be reformed by eliminating the requirement for unemployment registration and consolidating it into the process of submitting unemployment benefit applications at the Employment Service Centers established by the state employment management agency.

Supplementing the program with support for training, professional development, and skill enhancement.


Employers are eligible for financial support for training, retraining, and upgrading vocational skills to maintain employment for their workers if they meet the following conditions: they have paid unemployment insurance contributions for eligible employees continuously for at least 12 months up to the time of requesting support; they are facing difficulties due to economic downturns or other force majeure reasons requiring changes in production or business structure or technology; they lack sufficient funds to organize training, retraining, and upgrading vocational skills for their workers; and they have a training, retraining, and upgrading plan to maintain employment approved by a competent state agency.

The duration of support for training, retraining, and upgrading vocational skills to maintain employment for workers, according to the approved plan, shall not exceed 6 months. The Government shall specify the detailed level of financial support for training, retraining, and upgrading vocational skills to maintain employment for workers, ensuring the balance of the unemployment insurance fund.

Adding new eligibility requirements for unemployment benefits.

Unemployment insurance contributions must have been paid for at least 12 months within the 36 months prior to the termination of the employment contract, in the case of seasonal or fixed-term employment contracts lasting from 3 months to less than 12 months.

Changes to the method of calculating unemployment benefit entitlement time.

Unemployment benefits are calculated based on the number of months of unemployment insurance contributions. For every 12 to 36 months of contributions, you are entitled to 3 months of unemployment benefits. After that, for every additional 12 months of contributions, you are entitled to an additional month of unemployment benefits, but the maximum is 12 months.

Limits on monthly unemployment benefits.

The maximum amount shall not exceed 5 times the basic salary for employees subject to the salary regime prescribed by the State, or not exceed 5 times the regional minimum wage as stipulated in the Labor Code for employees contributing to unemployment insurance under the salary regime determined by the employer at the time of termination of the labor contract or employment contract.

Eliminate lump-sum unemployment benefits and retain the period of unemployment insurance contributions.

Workers whose unemployment benefits are terminated under the circumstances specified in points b, c, h, l, m, and n of Clause 3, Article 53 of the Employment Law shall have their unemployment insurance contribution period preserved as a basis for calculating the duration of unemployment benefits for the next time they meet the conditions specified in Article 49 of the Employment Law.

The retention period is calculated by subtracting the period for which unemployment benefits have already been received from the total unemployment insurance contribution period, based on the principle that each month of receiving unemployment benefits corresponds to 12 months of unemployment insurance contributions.

Expand the eligibility criteria for workers to receive vocational training support.

Workers who have paid unemployment insurance for at least 9 months within the 24 months prior to the termination of their employment contract or work agreement as stipulated by law are eligible for vocational training support upon termination of their employment contract or work agreement.

Maximum support of 1% of the monthly salary fund for unemployment insurance contributions.

The State provides support equivalent to a maximum of 1% of the monthly wage fund used for unemployment insurance contributions of workers participating in unemployment insurance, and this is guaranteed by the central budget.

Specific regulations regarding the unit receiving the application.

Employment service centers established by state employment management agencies receive unemployment insurance benefit applications and submit them to competent state agencies for decision.

According to Chinhphu.vn