Unemployment Insurance: A Safety Net for Workers When They Lose Their Jobs

Unemployment insurance (UI) is a program that provides temporary income to workers who lose their jobs. It helps cover living expenses and assists in finding new employment. Workers with labor contracts or employment contracts can participate. Enrollment is simple and can be done online. Benefits depend on the number of months of UI contributions, with a maximum of 12 months. To receive benefits, the worker must have terminated their contract, paid unemployment insurance for a certain period, submitted an application, and not found a job after 15 days. UI also offers job referrals, vocational training, and support for maintaining employment. The duration of benefits is based on the number of contributions. Workers and employers contribute 1% of the salary to the program. The benefit level is 60% of the average monthly salary before unemployment, not exceeding five times the minimum regional wage. Unemployment insurance, UI, acts as a safety net for workers who lose their jobs, providing them with a temporary source of income to cover living expenses and maintain their livelihood during a difficult period. This article provides detailed information about UI, including benefits, financial support, job referrals, vocational training, etc. Participation requirements, workers who are employed under a labor contract, participate in compulsory social insurance, etc. Enrollment procedures, simple, quick, and can be done online. Benefit levels depend on the number of months of UI contributions, maximum of 12 months. Procedures for receiving benefits, simple application process, quick resolution. One concept. Unemployment insurance, UI, is a social security program that provides support to workers who have lost their jobs, helping them have a temporary source of income to cover living expenses and have time to find new employment. Two participants. Workers have a labor contract or employment contract of indefinite duration, have a labor contract or employment contract of definite duration, have a seasonal labor contract or a contract for a specific job of a duration from zero three months to less than 12 months. Employers. State agencies, public service units, people's armed forces units, political organizations, socio-political organizations, socio-political professional organizations, social organizations, socio-professional organizations, foreign agencies, international organizations operating in Vietnam, enterprises, cooperatives, households, business households, cooperatives, other organizations, individuals who hire or employ labor under the aforementioned employment contracts or labor contracts. Three. Conditions for receiving unemployment insurance. Have terminated a labor contract or employment contract except for the following cases. The worker unilaterally terminates the labor contract or employment contract in violation of the law. Receiving monthly pension, disability allowance. Have paid unemployment insurance from 12 months or more in the 24 months before terminating a fixed term slash indefinite labor contract from 12 months or more in the 36 months before terminating a seasonal labor contract or a contract for a specific job of a duration from zero three months to less than 12 months. Have submitted an application for unemployment benefits at the employment service center established by the state management agency on employment within zero three months from the date of termination of the labor contract or employment contract. Have not found a job after 15 days from the date of filing an application for unemployment insurance except for the following cases. Performing military service, public security duty, going to school for a period of 12 months or more, enforcing the decision to apply measures to send to reformatory schools, compulsory education institutions, compulsory drug rehabilitation centers, detained, serving a prison sentence, settling abroad, going to work abroad under contract, death. Four, regime when participating in unemployment insurance. Unemployment benefits help workers have a temporary source of income to cover living expenses during the time they are looking for a new job. Support for consulting and job referrals help workers find jobs that match their abilities and needs. Vocational training support help workers improve their vocational skills to meet the demands of the labor market. Support for training retraining and upgrading of vocational skills to maintain employment for workers help workers update their specialized knowledge to maintain and develop their employment. Five, duration of unemployment insurance benefits. The duration of unemployment benefits is calculated based on the number of months of UI contributions specifically for every 12 months to 36 months of contributions receive three months of unemployment benefits. After that for every additional 12 months of contributions receive an additional one month of unemployment benefits but not exceeding 12 months. Six, unemployment insurance contribution rates. Workers contribute one percent of their monthly salary. Employers contribute one percent of the payroll of workers participating in the program. Seven, unemployment insurance benefit levels. The monthly unemployment benefit level is 60 percent of the average monthly salary of the six consecutive months of UI contributions before unemployment but not exceeding five times the minimum regional wage for workers who participate in UI under the wage regime decided by the employer at the time of termination of the labor contract or employment contract. The specific unemployment benefit level is calculated as follows. Average salary take the total amount of salary paid for UI contributions in the six consecutive months before unemployment and divide it by the number of months of UI contributions in those six months. Maximum allowance level five times the prescribed regional minimum wage at the time of workers resignation.