Latest unemployment insurance calculation guide

Unemployment insurance is an important regime to help reduce the "burden" of costs for employees while looking for a new job. So how exactly is unemployment insurance calculated ?

Based on the time of payment of social insurance, employees are calculated unemployment benefits at different rates. Navigos Search - Vietnam's leading headhunter brand will give specific advice and answers on how to calculate unemployment insurance right in this article. We invite you to read along!

1. What is Unemployment Insurance?

Unemployment insurance is a security policy that compensates a part of income for employees when they lose their jobs, supports workers in vocational training, job maintenance and job search on the basis of contributions to the Insurance Fund. unemployment insurance. Pursuant to Article 42 of the Employment Law 2013, the benefits of participating in unemployment insurance include:

•  Unemployment benefits
• Vocational training support
• Counseling and job placement support
• Support in fostering and improving vocational qualifications and skills to maintain jobs for employees

Unemployment insurance is considered a security policy

2. Who gets unemployment insurance?

Not all employees are entitled to unemployment insurance benefits. Specifically, employees must meet the necessary conditions as prescribed.

The subjects entitled to unemployment insurance are specified in Clause 1, Article 43 of the Employment Law 2013. Accordingly, the subjects are employees working under labor contracts or employment contracts with employers. employment in the following cases:

•  Working under labor contracts, working contracts of indefinite term;
• Working under labor contracts, definite-term work contracts;
• Working under seasonal labor contracts, according to certain jobs with a term of from full 3 to less than 12 months.

Subjects entitled to unemployment insurance are also subject to compulsory participation in unemployment insurance according to the provisions of law.

3. Conditions for enjoying unemployment benefits

In Article 49 of the Employment Law 2013, the conditions for enjoying unemployment benefits are as follows:

Employees specified in Clause 1, Article 43 of this Law who are paying unemployment insurance premiums are entitled to unemployment allowance when fully meeting the following conditions:

•  Termination of the labor contract, except for the following cases:

+ The employee unilaterally terminates the labor contract or illegal work contract;

+ Enjoy monthly pension and loss of working capacity;Having paid unemployment insurance premiums for 12

• Having paid unemployment insurance premiums for 12 months or more within the period of 24 months prior to the termination of the labor contract or working contract in the case specified at Points a and b, Clause 1, Article 43 of this Law; have paid unemployment insurance premiums for 12 months or more within the 36-month period before the termination of the labor contract, in the case specified at Point c, Clause 1, Article 43 of this Law;

• The application for unemployment benefits has been submitted at the employment service center according to the provisions of Clause 1, Article 46 of this Law;

• Unable to find a job after 15 days from the date of submitting the application for unemployment insurance, except for the following cases:

  + Perform military service and police duty;

  + Studying for a term of 12 months or more;

  + To abide by the decision to apply the measure to reformatories, educational institutions and compulsory detoxification establishments;

  + Being detained and serving a prison sentence;

  + Going abroad to settle down and work abroad under contracts;

  + "Die."

Subjects and conditions for enjoying unemployment benefits

4. Dossier for benefits and procedures for receiving unemployment insurance

Documents required to receive unemployment benefits

Pursuant to Article 16 of Decree 28/2015 of the Government stipulating that an application file for unemployment insurance benefits includes:

•  Social insurance book.
•  An application for unemployment insurance benefits, made according to the form prescribed by the Minister of Labor, War Invalids and Social Affairs.
• The original or a certified copy of one of the following documents certifying the termination of the employment contract or employment contract
• The labor contract or work contract has expired, the work has been completed according to the labor contract
• Decided to resign;
• Resolved excommunication;
• Disciplinary decision on dismissal;
• Notice, agreement on termination of labor contract, work contract.

Process and procedures for receiving unemployment insurance benefits

After completing the application for unemployment benefits, the employee will follow the following steps:

Step 1: Submit your application at your local Jobcentre

Within 3 months from the date of termination of the labor contract or working contract, if the employee has not had a job and is in need of unemployment insurance benefits, he/she should directly submit 01 dossier to the Center. job placement / local employment service center - where workers receive benefits.

Step 2. Time to process documents

• Within 15 days from the date of submission of the application, if the employee has not found a job, he or she should go to the Job Referral Center to confirm the settlement of the application for unemployment insurance benefits.
• Within 20 working days from the date of submission of the application, the Job Referral Center shall issue a decision to approve the payment of unemployment benefits together with a Social Insurance book with a stamp confirming payment to the employee.
• In case the employee is not entitled to unemployment insurance benefits, the job placement center must notify in writing, clearly stating the reason.
• Time to calculate unemployment insurance benefits: 16th day from the date of filing.

Step 3. Receive unemployment insurance benefits payment

•  Within 5 working days from the date of issuance of the decision approving the payment of unemployment benefits, the local social insurance agency shall pay the first month's allowance to the employee together with the health insurance card.
• Every month, the social insurance agency shall pay unemployment benefits within 12 days from the date of commencement of unemployment benefits for that month if it does not receive a decision on suspension or termination of unemployment benefits. of workers.

Step 4: Notice of monthly job search of employees

Every month, employees must go to the Employment Service Center to notify them of finding a job while receiving unemployment benefits. If the person receiving unemployment insurance benefits has a job without notice, he/she will be administratively handled.

The process of receiving the latest unemployment benefits

5. How to calculate unemployment insurance money correctly

Pursuant to Article 50 of the 2013 Employment Law, the employee's unemployment insurance allowance will be calculated according to the following formula:

Specifically, the maximum level of unemployment benefits will be limited as follows:

The employees who receive salary according to the salary regime prescribed by the State are:

•  Maximum monthly unemployment benefit = 5 x Base salary = 5 x 1.49 million VND = 7.45 million VND/month

Employees working in ordinary enterprises:

•  Maximum monthly benefit = 5 x Regional minimum salary

The current regional minimum wage is being applied by Decree 38/2022/ND-CP. Therefore, the maximum monthly unemployment allowance of employees who have worked in the enterprise will be calculated:

6. How is unemployment insurance paid?

In Clause 2, Article 18 of Decree No. 28/2015/ND-CP, the social insurance agency shall pay unemployment benefits to employees on a monthly basis.

Each month, the employee must go to the employment service center to notify the job search status by appointment to receive that month's allowance. Failure to do this will result in employees being stopped from paying unemployment benefits (Clause 1 Article 52, Clause 1 Article 53 of the Employment Law 2013).

Pursuant to Clause 3, Article 53 of the Law on Employment, in case an employee is currently receiving unemployment benefits and determined to have a job, his/her unemployment benefit will be terminated. If the employee's period of unemployment insurance premium payment has not been fully enjoyed, it shall be reserved to accumulate for the following benefits.

The reserved closing time is defined as below:

Retention period = Total period of paying unemployment insurance premiums - Number of months of receiving unemployment benefits x 12.

How to calculate unemployment insurance correctly?

Above is a guide on how to calculate unemployment insurance accurately that Navigos Search has compiled. Hope this article has brought useful information to readers.

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