What are the levels of unemployment insurance contributions and benefits?

Most of employees are interested in the levels of unemployment insurance contributions and benefits when participating in unemployment insurance. What is the minimum level of unemployment insurance contribution and benefit?

What are the levels of unemployment insurance contributions?

In accordance with Article 43, Law on Employment 2013, employers and employees must participate in unemployment insurance.

Pursuant to Article 57, Law on Employment 2013, the monthly levels to pay unemployment insurance premiums are defined as follows:

- Employees shall pay unemployment insurance premiums equal to 1%.

- Employers shall pay unemployment insurance premiums equal to 1% of the monthly wage fund of the workers currently participating in unemployment insurance.

Within that:

Wages on which unemployment insurance premiums are based are used as the base for his/her social insurance (Article 58, Law on Employment 2013).

The monthly wage on which unemployment insurance premiums are based is the monthly wage on which compulsory social insurance premiums at the minimum and maximum levels are as follows:

+ Minimum level = Minimum region-based wage level

+ Maximum level = 20 x Minimum region-based wage level

Accordingly, the minimum and maximum levels of employees are defined as follows:

- Minimum level of unemployment insurance premium = 1% x Minimum region-based wage level

- Maximum level of unemployment insurance premium = 1% x 20 x Minimum region-based wage level = 0.2 x Minimum region-based wage level

The levels of unemployment insurance contribution are as follows:

What are the levels of unemployment insurance benefits?

Article 50, Law on Employment 2013 prescribes the levels of unemployment benefits as follows:

1.  The monthly unemployment allowance level equals 60% of the average
monthly wage of 6 consecutive months before the worker becomes unemployed on which unemployment insurance premiums are based, but must not exceed 5 times the basic wage level, for workers receiving wages under the State-prescribed regime, or must not exceed 5 times the region-based minimum wage level under the Labor Code, for workers who pay unemployment insurance premiums under the wage regime decided by employers at the time of termination of the labor contract or working contract.

Accordingly, the monthly unemployment allowance level equals 60%. This percentage is calculated based on the average monthly wage for 6 consecutive months before the worker becomes unemployed.

Also, in accordance with the above regulations, the maximum level of unemployment benefits is as follows:

For example, the average monthly wage of 6 consecutive months before Mr. A becomes unemployed is VND 10 million/month. Accordingly, the monthly unemployment benefits that Mr. A shall be:

The unemployment benefit/month = 60% x VND 10 million = VND 06 million/month. Here is the answer to the question: “What are the levels of unemployment insurance contributions and benefits?”