Unemployment benefit is an amount of money that an employee receives from the insurance fund upon termination of a labor contract or a working contract and must satisfy the conditions as prescribed by law (Article 43.1, Article 46, Article 49 and Article 50 of Law on Employment 2013)
1. Conditions for receipt of unemployment benefit
Employees who are paying unemployment insurance premiums are entitled to unemployment benefits when they fully meet the following conditions:
- Terminating the labour contract or working contract, except the following cases:
(i) The employee unilaterally terminates the labour contract or working contract illegally;
(ii) The employee terminates the labour contract and enjoys a monthly pension or working capacity loss.
- Having paid unemployment insurance for 12 months in full or more during the 24-month period before terminating the labour contract or working contract with the type of contract with definite term or indefinite term.
- Having paid unemployment insurance premiums for 12 months in full or more during the 36-month period before terminating a seasonal labour contract or a certain job with a term from 3 months in full to less than 12 months.
- Have submitted an application dossier for unemployment benefits at the employment service center within 03 months from the date of termination of the labour contract or working contract.
- Having not yet found a job after 15 days from the date of application submission, except for the following cases:
(i) Performing military service, police service;
(ii) Studying for a term of full 12 months or more;
(iii) Implementing the decision on applying for measure of reformatory, compulsory education institution, compulsory detoxification place;
(iv) Being detained; serving prison sentences;
(v) Going abroad to settle down; working abroad under contract;
(vi) Dead.
2. Rate of unemployment benefit
2.1 Benefit rate:
(i) Benefit rate= 60% of the average monthly salary of the 6 consecutive month period before the unemployment;
Note:
- The employees implement the salary regime prescribed by the State, the maximum benefit rate shall not exceed 5 times the base salary;
- The employees implement the salary regime prescribed by the employer (outside the state), the maximum benefit rate shall not exceed 05 times the regional minimum wage at the time of termination of the labour contract.
2.2 Number of months entitled to unemployment benefit:
- Paying full 12 months to full 36 months of unemployment insurance, the employee will be entitled to 03 months of unemployment benefits;
- For every additional 12 months of full payment, they will be entitled to an additional month of unemployment benefit but not exceeding 12 months.
Note: In case the unemployment benefit has not been fully enjoyed under the decision on unemployment benefit but the employees then get a job, they will not continue to receive it.
ADK & Co Vietnam Lawyers