Enough money to pay unemployment benefits to civil servants when streamlining the apparatus

(NLDO) - The leader of Vietnam Social Security said that the current balance of the Unemployment Insurance Fund is 63,000 billion VND, ensuring enough to cover the benefits for employees who have to quit their jobs.

Mr. Le Hung Son, Deputy General Director of Vietnam Social Security, speaking. Photo: Lam Hien

On the afternoon of January 6, continuing the 41st Session, the National Assembly Standing Committee discussed the draft Law on Employment (amended).

Chairwoman of the Social Affairs Committee Nguyen Thuy Anh said that at the time of submitting the draft law, agencies had not yet thoroughly implemented the policy of innovation and reorganization of the political system. Therefore, the draft did not foresee the impact of changing the names, functions, and tasks of agencies and organizations; and did not update policies for people who no longer had jobs due to the reorganization.

In addition, the arrangement will affect the balance of the Unemployment Insurance Fund when reducing the number of participants and increasing the number of beneficiaries. Ensuring the balance of the Unemployment Insurance Fund in cases of organizational restructuring also needs further study.

Moderating the discussion session, Vice Chairwoman of the National Assembly Nguyen Thi Thanh acknowledged that when implementing the restructuring of the apparatus, a large number of civil servants, public employees, and workers were unemployed but did not meet the conditions to receive pensions during the restructuring.

With the number of people affected after the arrangement according to the Ministry of Home Affairs is about 100,000 people, Ms. Nguyen Thi Thanh suggested that Vietnam Social Security review resources, implementation capacity, and ensure the implementation of Decree 178/2024/ND-CP dated December 31, 2024 of the Government on policies and regimes for cadres, civil servants, public employees, workers and armed forces in implementing the arrangement of the apparatus of the political system.

Responding to this content, Mr. Le Hung Son, Deputy General Director of Vietnam Social Security, said that during the reorganization process, there will be civil servants working at public service units who are laid off and do not meet the conditions for retirement benefits, but will receive unemployment insurance benefits. This support includes unemployment benefits and vocational training support.

According to the general impact assessment, the Ministry of Home Affairs expects 100,000 people to benefit from Decree 178, including both civil servants and public employees. However, Mr. Son said that according to the law, only public employees are entitled to unemployment insurance. However, it is not yet clear how many of these public employees will be included.

However, if there is an expense for officials receiving unemployment benefits under Decree 178, the fund for the expense will still be available and guaranteed because the current unemployment insurance fund balance is about 63,000 billion VND.

Mr. Son informed that in recent years, the revenue and expenditure of the Unemployment Insurance Fund have been basically close. For example, in 2023, the revenue was 23,000 billion VND, while the expenditure was 22,995 billion. In 2023, there were 1.05 million people receiving unemployment benefits and the Vietnam Social Security paid up to 99.3% through personal accounts.

"The settlement of payments is not related to administrative boundaries. Therefore, if implemented according to the new model, even inter-district payments will not affect the payment to unemployment beneficiaries," said Mr. Son.

The monthly unemployment benefit is equal to 60% of the average monthly salary for unemployment insurance contributions of the last 6 months before the termination of the labor contract, work contract or termination of work, but not exceeding 5 times the regional minimum monthly wage.

The duration of unemployment benefits is calculated based on the number of months of unemployment insurance contributions. For every 12 months of contributions up to 36 months, you will receive 3 months of unemployment benefits. After that, for every additional 12 months of contributions, you will receive 1 more month of unemployment benefits, but the maximum period of benefits is no more than 12 months.

Source: https://nld.com.vn/du-tien-giai-quyet-tro-cap-that-nghiep-cho-vien-chuc-khi-tinh-gon-bo-may-196250106184533459.htm