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Official Gazette

Monday, August 21, 2017

New unemployment insurance policies proposed

Updated: 10:43’ - 22/08/2014

The Ministry of Labor, War Invalids and Social Affairs has recently unveiled a draft decree to detail a number of articles of the Law on Employment regarding unemployment insurance.

Under a draft designed to replace Decree No. 100/2012/ND-CP on unemployment insurance, employers would be requested to pay unemployment insurance premiums for their employees within 30 days from the effective date of the labor contracts.

The unemployment insurance premium amount payable by an employee is equal to one percent of his monthly wages, while the amount payable by an employer is one percent of the total amount wages it has to pay to employees participating in unemployment insurance.

In case a laborer fails to find a new job within three months after losing his job or after his labor contract terminates, he would file a dossier of request for unemployment insurance indemnities directly to an employment service center, instead of labor agencies as prescribed in Decree No. 100, for consideration and submission to provincial-level Department of Labor, War Invalids and Social Affairs for decision.

Within 20 days after receiving a complete dossier of request for unemployment insurance indemnities, the director of the provincial-level Department of Labor, War Invalids and Social Affairs would issue a decision on payment of unemployment insurance indemnities. Insurance indemnities would be paid to the laborer within five days after the social insurance organization receives the decision. In case the social insurance organization fails to pay indemnities in time or refuse to pay indemnities, it would notify such in writing to the employment service center and laborers.

According to Article 50 of the Law on Employment, the time for enjoying unemployment insurance is calculated based on the number of months of payment of unemployment insurance premiums. Employees who have paid insurance premiums for between full 12 months and full 36 months are entitled to enjoy insurance indemnities for three months, and then one more month for every 12 months of payment of premiums. However, the total time of enjoying unemployment insurance benefits must not exceed 12 months.-


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