Unemployment insurance policies are designed to support and alleviate economic hardships faced by workers during difficult economic times.
1 What is Unemployment Insurance?
Unemployment Insurance
Unemployment insurance is becoming increasingly important for workers during these challenging economic times.
Unemployment insurance is a scheme that partially replaces lost income for unemployed workers, assists them in learning new trades, and supports their job search efforts, all funded by contributions to the Unemployment Insurance Fund (Clause 4, Article 3 of the 2013 Employment Law).
2 Eligibility for Unemployment Insurance
Eligibility for Unemployment Insurance
Workers with fixed-term labor contracts of three months or longer across all organizations and entities (regardless of the number of employees) are eligible.
If a worker has signed labor contracts with multiple companies, the first company is responsible for their unemployment insurance (subsequent companies are responsible if the initial contract ends).
Within 30 days from the effective date of the labor contract, the company must complete the unemployment insurance enrollment process for the worker.
3 Unemployment Insurance Contributions
Unemployment Insurance Contributions
According to Clause 1, Article 14 of Decision 595/QD-BHXH:
Workers contribute 1% of their monthly salary.
Employers contribute 1% of the total monthly salary of their enrolled employees.
The salary used for calculation is the contracted income, excluding bonuses, overtime pay, and allowances provided by the employer.
4 Conditions for Receiving Unemployment Insurance
Conditions for Receiving Unemployment Insurance
Workers are eligible to receive unemployment insurance benefits if they meet the following conditions:
Termination of employment or labor contract, except in cases where the worker unilaterally terminates the contract, the contract is terminated illegally, or the worker is receiving retirement or permanent disability benefits.
Having contributed to unemployment insurance for at least 12 months within the last 24 months prior to the termination of a fixed-term or indefinite-term labor contract.
Having contributed to unemployment insurance for at least 12 months within the last 36 months prior to the termination of a seasonal or fixed-term labor contract of at least three months but less than 12 months.
Submitting the application for unemployment benefits to the employment service center within three months from the date of termination of the labor contract.
Remaining unemployed after 15 days from the date of submitting the application for unemployment insurance benefits, except in the following cases:
- Performance of military or police service;
- Enrollment in full-time education or training for at least 12 months;
- Compliance with a decision to be admitted to a reform school, compulsory education establishment, or compulsory drug treatment center;
- Being detained, serving a prison sentence;
- Emigrating; working abroad under a contract;
- Death of the worker.
5 Unemployment Insurance Benefits
The unemployment benefit amount for workers is calculated as follows:
Monthly unemployment benefit = Average monthly salary of the last 6 consecutive months with unemployment insurance contributions x 60%
The monthly unemployment benefit is 60% of the average monthly salary of the last 6 consecutive months with unemployment insurance contributions, but not exceeding five times the basic salary for workers subject to the state-regulated salary scheme or not exceeding five times the regional minimum wage as stipulated in the Labor Code for workers whose unemployment insurance contributions are based on a salary determined by the employer at the time of termination of the labor contract.
6 Unemployment Insurance Claim Process
Unemployment Insurance Claim Process
To receive unemployment benefits, workers need to prepare the following documents:
- Application form for unemployment benefits (standard format).
- Original or certified copy of one of the documents confirming the termination of the labor contract.
- Social insurance book. When receiving unemployment benefits, workers need to present their original ID card/citizen identification card + household registration book/temporary residence book for verification.
This article provides basic information about the conditions, benefit amounts, and procedures for receiving unemployment insurance, empowering workers to know and protect their rights.
Quick and Accurate VssID Registration Guide Revealed
VssID is an application that allows you to easily and conveniently track and look up information related to Social Insurance, Unemployment Insurance, Accident Insurance, and more. So, how do you register for VssID?
