In which cases are workers entitled to unemployment benefits?

One of the benefits of unemployment insurance is that participants receive unemployment benefits. However, they must meet the conditions for unemployment insurance benefits according to regulations before becoming unemployed. This includes the condition on the period of unemployment insurance payment.

According to the report of the Ministry of Labor, Invalids and Social Affairs, due to the increase in unemployed workers, as of mid-September 2023, more than 812,000 workers nationwide had applied for unemployment insurance, an increase of nearly 11% over the same period last year. During the same period, local Employment Service Centers resolved unemployment benefits for more than 773,000 people, an increase of 7.3% over the same period last year.

Conditions for receiving unemployment benefits are stipulated in Article 49 of the 2013 Law on Employment. Accordingly, employees who are paying unemployment insurance and quit their jobs are entitled to unemployment benefits when they meet the following conditions:

First, the employee terminates the labor contract or work contract. However, there are 2 cases where the employee terminates the contract but is not entitled to unemployment benefits: Unilaterally terminating the labor contract or work contract illegally; receiving monthly pension or disability benefits.

Second, the employee has paid unemployment insurance for 12 months or more within 24 months prior to the termination of the contract in the case of an indefinite-term or fixed-term contract.

In the case of signing a seasonal labor contract or a specific job contract with a term of 3 months to less than 12 months, the employee must pay unemployment insurance for 12 months or more within 36 months before the contract is terminated.

Third, employees must submit unemployment benefits applications to the employment service center within 3 months from the date of contract termination.

In addition to the above 3 conditions, there is an additional condition that the employee has not found a new job within 15 days from the date of submitting the unemployment insurance application.

The monthly unemployment benefit is equal to 60% of the average monthly salary for unemployment insurance contributions of the 6 consecutive months prior to unemployment.

However, the maximum benefit 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 prescribed by the Labor Code for employees paying unemployment insurance according to the salary regime decided by the employer at the time of termination of the labor contract or employment contract.

In addition, the law also stipulates cases where workers cannot find new jobs but are still not entitled to unemployment benefits.

These are employees performing military service or police service; studying for a term of 12 months or more; executing a decision to apply measures to send them to a reformatory school, compulsory education facility, or compulsory drug rehabilitation facility; being detained; serving a prison sentence; settling abroad; working abroad under a contract; or dying.

It is known that the Unemployment Insurance Fund balance by the end of 2022 is estimated at 59,300 billion VND, and is expected to increase to more than 62,400 billion VND this year.