How to Calculate Unemployment Insurance Benefits Accurately

Unemployment insurance has been playing an important role in the process of using human resources in society. According to data from the Vietnam Labor Market Statistics Office, the number of unemployed people of working age in the second quarter of 2023 was about 1.07 million people, an increase of 25.4 thousand people compared to the previous quarter and an increase of 1.9 thousand people compared to the same period last year. So how is the unemployment benefit for workers calculated? Let’s find out with ADSMO in the article below!

1. So what is unemployment insurance? Who can participate in unemployment insurance?

According to Clause 4, Article 3 of the 2013 Law on Employment, unemployment insurance is a regime that partially compensates employees’ income when they lose their jobs, supports employees in vocational training, maintains and searches for jobs on the basis of contributions to the Unemployment Insurance Fund.

Also stipulated in Article 43 of the 2013 Law on Employment, both employees and employers have the responsibility and obligation to participate in this type of insurance (except for employees receiving pensions and domestic workers who do not have to participate).

The Ministry of Labor, War Invalids and Social Affairs has developed the Law on Employment and the Social Insurance Organization implements the collection, disbursement, management and use of the Unemployment Insurance Fund

2. Benefits when participating in Unemployment Insurance

Benefits for unemployment insurance participants are stipulated in Article 42 of the Law on Employment. Law No. 38/2013/QH13, which are:

• Unemployment benefits;
• Support for job consultation and referral;
• Support for vocational training;
• Support for training, fostering, and improving vocational skills to maintain employment.

3. Unemployment insurance contribution level

According to Article 57 of the 2013 Law on Employment, the monthly unemployment insurance contribution level of employees and employers is stipulated as follows:

• Enterprises pay 1%
• Employees pay 1% of their monthly salary for social insurance (including salary allowances and other additional amounts agreed upon by both parties – excluding benefits and bonuses)

The lowest salary for unemployment insurance is calculated at the regional minimum wage and the maximum is 20 times the regional minimum wage.

4. Level of benefits, conditions, duration and time of receiving unemployment benefits

– Conditions:

+ Employees who have terminated their labor contracts (Except for cases where employees unilaterally terminate labor contracts, illegal contracts, employees who are receiving monthly pensions or allowances for loss of working capacity)

+ Have registered for unemployment and submitted a complete application for unemployment benefits as well as you must directly register your employment status at the Department of Employment Service Center every month Labor, War Invalids and Social Affairs of the place of residence. If you do not register, your unemployment benefits will be suspended.

+ Have not found a job after 15 days from the date of submitting the application for unemployment insurance;

Except for cases such as employees performing military service, studying for 12 months or more, being arrested or detained according to the provisions of law.

– Benefit period:

+ Paying for 12 to 36 months: receive 03 months of unemployment benefits

+ After paying for 36 months, if you continue to pay for 12 months, you will receive an additional 01 month of benefits (but not more than 12 months of benefits)

Note:

Over 12 years, you will still only receive 12 months of benefits.

Employees who have paid unemployment insurance for more than 36 months will have the odd months that have not been resolved for unemployment benefits reserved for the next time. next benefit.

– Unemployment benefit level = 60% x average salary of 06 consecutive months before unemployment with social insurance contributions (maximum not exceeding 05 times the basic salary or regional minimum salary)

Basic salary prescribed by the State in Decree 38/2022/ND-CP (before July 1, 2023): 1,490,000 VND

Decree No. 24/2023/ND-CP, From July 1, 2023 Basic salary: 1,800,000 VND

–Time to receive benefits: from the 16th day, from the date of submitting complete unemployment benefit documents.

From the above regulations to calculate Unemployment Insurance Benefits, we need to determine:

1. Average salary of 6 consecutive months before unemployment.
2. Unemployment insurance payment period not yet received = Total unemployment insurance payment period – Unemployment benefit period received

Example: Employee A has a salary of 5,000,000 VND for participating in social insurance in the last 6 consecutive months.

Social insurance participation period is 2 years.

The monthly salary for unemployment benefits within 3 months is

= 60% x 5,000,000 VND =  3,000,000 VND

Currently, you can easily track your social insurance participation process and social insurance participation salary to calculate the amount of unemployment benefits on the VssID application or the official website of the Social Insurance.

5. What does a complete Unemployment Insurance Profile include?

–  Request for unemployment benefits according to the form prescribed by the Minister of Labor, War Invalids and Social Affairs

– Original or certified copy of one of the following documents confirming the termination of the labor contract or work contract:

+ The labor contract or work contract has expired or the work under the labor contract has been completed;

+ Decision to terminate employment;

+ Decision to dismiss;

+ Disciplinary decision to terminate employment;

+ Notice or agreement to terminate the labor contract or employment contract.

– Social insurance book

6. Detailed steps to receive unemployment insurance

Employees must take the following steps to receive unemployment benefits:

Step 1:Within 3 months from the date of termination of the contract, you must submit a set of documents for unemployment insurance to the employment service center.

You can submit directly or by post. Submit your application online on the national public service portal and follow the instructions.

Step 2: Receive the decision on unemployment benefits according to the date stated on the appointment paper at the center.

Within 20 working days from the date of application submission, the Center shall issue a decision approving the payment of unemployment benefits with a social insurance book confirming payment to the employee. In case the employee is not entitled to unemployment benefits, the social insurance agency must notify in writing and state the reason.

Step 3: According to Clause 2, Article 18, Decree 28/2015/ND-CP. Within 5 days from the date of receiving the decision to receive unemployment benefits, go to the social insurance agency to receive the first month’s benefits along with health insurance.

Every month, the social insurance agency will pay unemployment benefits within 12 days if it does not receive a decision to temporarily suspend or terminate unemployment benefits from the employee

Step 4:Every month, go to the center to receive free guidance and advice on labor and employment as well as free vocational training or to report on the status of your job search, otherwise you will be cut off from benefits according to regulations.

Please connect with ADSMO via hotline 0356.105.388to discuss and consult on Administrative – Human Resources software to help businesses and units operate more effectively.

>>>See more: 14 things workers need to know to protect themselves