Labor - Employment

Why not increase the maximum unemployment benefit for workers?

VN (according to Vietnamnet) January 5, 2025 09:37

Many opinions say that the current unemployment benefit level of 60% of the average monthly salary is too low and proposes that it should be increased to a maximum of 75% (equivalent to the pension level).

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Many opinions say that the revised Employment Law should increase unemployment benefits to a maximum of 75% of the average monthly salary. Illustrative photo

The issue of increasing unemployment benefits continues to receive many opinions from ministries, branches and localities.

Recently, the Ministry of Labor, War Invalids and Social Affairs received a petition from voters in Lang Son, Thua Thien Hue, Phu Yen, Ninh Thuan and An Giang provinces, proposed by the Petition Committee of the National Assembly Standing Committee to increase unemployment benefits for unemployed workers.

Accordingly, voters proposed to study increasing unemployment benefits from 60% to 75% (equal to the maximum pension level) to create conditions to support workers to have a minimum living standard when they lose their jobs or become unemployed.

The report shows that by the end of 2023, the unemployment insurance fund will have a surplus of nearly 60,000 billion VND, while the lives of unemployed workers face many difficulties.

Commenting on the draft Law on Employment (amended) on this content, the Vietnam General Confederation of Labor previously proposed increasing the monthly unemployment benefit to 75% of the average monthly salary for unemployment insurance contributions most recently before the employee became unemployed.

According to the Vietnam General Confederation of Labor, most businesses currently pay unemployment insurance at the regional minimum level set by the Government, while the current regional minimum wage is still low. Therefore, it is appropriate to increase unemployment benefits to at least 75% to create conditions to support workers to have a minimum living standard when they lose their jobs.

At the recent discussion session of the revised Law on Employment of the National Assembly, delegate Dieu Huynh Sang (Binh Phuoc) said that in reality, the unemployment benefit level of 60% of the average monthly salary is not enough to cover the living expenses of workers, not to mention taking care of their families.

Meanwhile, the salary of enterprises participating in unemployment insurance is mostly based on the regional minimum wage, about more than 4 million VND/month and the unemployment benefit is only about 2.5 million VND.

Ms. Sang said that the drafting committee should study the regulation to increase the monthly unemployment benefit from 60% to 75% of the average monthly salary to suit the reality of life.

At the same time, remove the regulation that the maximum unemployment benefit period is no more than 12 months.

“Unemployment insurance is implemented on the principle of “contribute and receive”, “contribute to the extent you receive” and is unlimited to be compatible with the 2019 Labor Code on severance pay,” said Ms. Sang.

Delegate Nguyen Hoang Bao Tran of Binh Duong province said that unemployment insurance needs to be guaranteed according to the principle of contribution and benefit to balance and harmonize the rights of workers when unemployed. Therefore, it is necessary to review the provisions of Article 64 of the draft law, which stipulates that in cases where workers unilaterally terminate their contracts; are fired; are disciplined or forced to quit their jobs, they are not entitled to unemployment benefits.

What does the Ministry of Labor, War Invalids and Social Affairs say?

Responding to recent petitions from local voters, the Ministry of Labor, War Invalids and Social Affairs said that, based on the provisions of the 2013 Law on Employment, the draft revised Law on Employment stipulates that the monthly unemployment benefit is equal to 60% of the average monthly salary for unemployment insurance contributions of the 6 most recent months of contributions before unemployment.

The maximum benefit is not more than 5 times the regional minimum monthly wage announced by the Government in the last month of unemployment insurance payment.

The Ministry of Labor, War Invalids and Social Affairs believes that the unemployment insurance policy in Vietnam in general and the unemployment benefit level in particular are built on the basis of international experience of countries with similar conditions to Vietnam and have successfully implemented this policy such as Korea, Thailand, Indonesia...

The unemployment insurance benefit level in our country is also based on the recommendation of the International Labor Organization (ILO) which is not less than 45% of previous income or not less than 45% of the prescribed minimum wage.

Implementing this policy, the current unemployment benefit level is consistent with the principle that unemployment insurance benefits are calculated based on the contribution level.

The above regulation contributes to ensuring the safety of the unemployment insurance fund. Because each year, the number of people receiving unemployment benefits tends to increase and the number of workers with accumulated unemployment insurance contributions also increases, leading to a longer period of unemployment benefits.

From 2020 to 2023, unemployment insurance revenue and expenditure have basically approached each other.

According to the Ministry of Labor, War Invalids and Social Affairs, unemployment benefits are short-term benefits that only partially support workers' income to reduce difficulties when they temporarily lose their jobs.

Therefore, the draft revised Law on Employment, which provides 60% of the average monthly salary, not only ensures the surplus of the unemployment insurance fund to implement policies to support employees and employers, but also aims to encourage employees to proactively and quickly search for and move to new jobs.

VN (according to Vietnamnet)
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Why not increase the maximum unemployment benefit for workers?