The Ministry recommends that all people with indefinite-term labor contracts, contracts of one month or more, business managers, and cooperative operators must participate in unemployment insurance. According to current law, only those with contracts of three months or more must participate.
The proposed change in the Unemployment Insurance Fund contribution rate. Instead of the employee contributing 1% of the monthly salary, the employer contributing 1% of the total monthly salary fund and the state budget supporting 1% as at present, the revised Law will only stipulate a maximum of 1%. The Government will decide on the specific contribution rate, which may be less than 1%.
In fact, there was a time when the Unemployment Insurance Fund had a large surplus and the management agency wanted to reduce the contribution rate for employees from 1% to 0.5% of monthly salary, but because it was against the Law on Employment, it had to ask for the National Assembly's opinion.
In addition, the Ministry of Labor, War Invalids and Social Affairs proposed to add regulations assigning the Government to develop and implement policies to support workers and business owners in the face of major fluctuations; regulations on the use of the Unemployment Insurance Fund in urgent cases.
The Law on Employment (amended) is expected to be submitted to the 15th National Assembly for consideration and initial comments at the 8th session in October 2024; approved at the 9th session in May 2025 and take effect on January 1, 2026.
Unemployment insurance policy has been implemented since 2009, including the following regimes: Unemployment benefits, job placement consultancy, vocational training support and health insurance. This is considered a tool to protect the economy from shocks caused by unemployment.
The fund comes from contributions from employers and employees, state support, profits from fund investment activities and other legal sources. Currently, the participating group is formal sector workers with contracts, paid according to the principle of "contribute - receive".
Workers look for new job opportunities at the Hanoi Employment Service Center. Photo: Ngoc Thanh
According to current regulations, the monthly unemployment benefit is equal to 60% of the average monthly salary for unemployment insurance contributions of the 6 consecutive months before leaving work, not exceeding 5 times the basic salary or regional minimum wage. The benefit period is calculated based on the number of months of unemployment insurance contributions, paying 12-36 months is entitled to 3 months of unemployment benefits; paying an additional 12 months is entitled to an additional month of benefits, not exceeding 12 months.
By the end of 2022, the whole country will have more than 16 million workers participating in compulsory social insurance; the number participating in unemployment insurance alone is 14.33 million, accounting for more than 31% of the working-age workforce.
According to VnExpress
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