In the Draft Law on Employment (amended), the Ministry of Labor, War Invalids and Social Affairs proposed that the monthly unemployment benefit level is equal to 60% of the average monthly salary for unemployment insurance contributions of the 6 consecutive months before unemployment, but not exceeding 5 times the minimum monthly salary by region announced by the Government in the last month of unemployment insurance contributions.

The duration of unemployment benefits is calculated based on the number of months of unemployment insurance contributions. If you have paid for 12 to 36 months, you will receive 3 months of unemployment benefits.

After that, employees will receive 1 more month of unemployment benefits for every 12 additional months of contributions, but not more than 12 months.

A representative of a textile and garment enterprise said that the unemployment rate in our country is currently low compared to developing countries, but the quality of jobs and income are not high.

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Vietnam General Confederation of Labor proposes to adjust monthly unemployment benefits

The current unemployment benefit payment level is still low. Even in the textile industry, if the unemployment benefit rate is 60%, it will be very low and may not be able to ensure the minimum living standards of workers.

In addition, along with increasing the benefit level, it is necessary to clarify the basis for limiting the unemployment insurance benefit period to no more than 12 months.

According to the Vietnam General Confederation of Labor, in reality, most businesses currently pay unemployment insurance for employees according to the regional minimum wage set by the Government, while the current regional minimum wage is still low.

After adjustment from July 1, 2024 according to Decree No. 74 of the Government, the current minimum wage in region 1 increases to 4.96 million VND/month, region 2 is 4.41 million VND/month, region 3 is 3.86 million VND/month, region 4 is 3.45 million VND/month.

Based on the above regulations, from July 1, 2024, the maximum unemployment benefit level is as follows: Employees subject to the salary regime prescribed by the State are 11.7 million VND/month (with the current basic salary being 2.34 million VND).

Employees pay unemployment insurance according to the salary regime decided by the employer: 24.8 million VND/month (region 1), 22.05 million VND/month (region 2), 19.3 million VND/month (region 3), and 17.25 million VND/month (region 4).

Therefore, the Vietnam General Confederation of Labor believes that it is appropriate to increase unemployment benefits to at least 75% to create conditions to support workers to have a minimum living standard when they lose their jobs or become unemployed.

Increase the benefit level, must increase the contribution level

Mr. Vu Trong Binh, Director of the Department of Employment (Ministry of Labor, Invalids and Social Affairs) said that if the unemployment benefit period is extended, workers will have to pay more money. Because currently they are paying the minimum unemployment insurance but receiving the maximum, it is necessary to balance the risk capacity of the unemployment insurance fund.

If the unemployment benefit period is not controlled, workers may enjoy the benefits and not actively look for jobs or participate in the labor market. This is a weakness and will cause the unemployment insurance fund to operate in a way that is not in line with its objectives.

If an employee receives too many months of unemployment benefits, it will affect the unemployment insurance fund.

If we extend the unemployment benefit period, expand the training regime and the benefit regime, we will have to increase the unemployment insurance premium, which will cause difficulties for both workers and businesses.

A labor expert said that in the long term, the Ministry of Labor, Invalids and Social Affairs should increase unemployment benefits to 75% of the maximum pension benefit. Increasing the benefit level helps workers ensure a minimum living standard when they lose their jobs. When the benefit level increases and ensures their living conditions, unemployed people will feel secure in learning a trade to change jobs.