05 Feb Unemployment benefits and its conditions in Vietnam

Unemployment benefits in Vietnam play an important role in protecting employees in case of job loss. The benefits provide financial support to eligible employees who have been laid off due to no fault of their own. In this article, we will discuss the eligibility criteria, calculation of benefits, contributions, and other important information about unemployment benefits in Vietnam.

Who is eligible for unemployment benefits in Vietnam? To be eligible for unemployment benefits in Vietnam, an individual must meet the following criteria:

1. The employee must have been working for a company for at least 12 months prior to their layoff.
2. The employee must have been laid off due to no fault of their own.
3. The employee must be actively searching for a new job.

How does it work? Employers and employees both contribute to the social insurance fund, which is managed by the Social Insurance Agency. The employer’s contribution is equal to 8% of the employee’s salary, while the employee’s contribution is equal to 1.5% of their salary. When an employee is laid off, they can apply for unemployment benefits, which is equal to 60% of the average salary that they received in the last 12 months of their employment.

How much the employee and employer must pay? The employer must contribute 8% of the employee’s salary to the social insurance fund, while the employee must contribute 1.5% of their salary. These contributions are used to finance the unemployment benefits program.

Conditions to benefit In order to receive unemployment benefits, an employee must meet the following conditions:

1. The employee must be actively searching for a new job.
2. The employee must be able to prove that they have been laid off due to no fault of their own.
3. The employee must not have voluntarily quit their job.

Examples and Calculations Example 1: An employee has been working for a company for 18 months and has a monthly salary of 10 million VND. In this case, the employee’s contribution to the social insurance fund would be equal to 1.5% of 10 million VND, or 150,000 VND per month. If the employee is laid off, they would be eligible for unemployment benefits, which would equal 60% of the average salary that they received in the last 12 months of their employment. In this case, the benefits would equal 60% of 10 million VND, or 6 million VND per month.

Example 2: An employee has been working for a company for 24 months and has a monthly salary of 15 million VND. In this case, the employer’s contribution to the social insurance fund would be equal to 8% of 15 million VND, or 1.2 million VND per month. The employee’s contribution would be equal to 1.5% of 15 million VND, or 225,000 VND per month. If the employee is laid off, they would be eligible for unemployment benefits, which would equal 60% of the average salary that they received in the last 12 months of their employment. In this case, the benefits would equal 60% of 15 million VND, or 9 million VND per month.

Conclusion Unemployment benefits in Vietnam play a crucial role in protecting employees in case of job loss. It is important to understand the eligibility criteria, contributions, and conditions to receive benefits. The examples and calculations provided in this article give a general idea of how the benefits program works. However, readers must seek professional advice to fully understand their rights and obligations related to unemployment benefits in Vietnam.

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