Proposal to increase unemployment benefits

Workers petitioned the National Assembly to amend the law to increase unemployment benefits and reduce contributions to the fund to less than 1%.

Speaking at the Labor Forum on July 28, Ms. Dang Hong Them, Son La Urban Environment and Services Joint Stock Company, said that the unemployment insurance fund has a large surplus while the subsidy level for workers is still low. Current regulations calculate the subsidy at 60% of the average monthly salary for unemployment insurance contributions for the six consecutive months before leaving work.

Ms. Them proposed that the National Assembly amend the law to increase support for workers from the Unemployment Insurance Fund at Dien Hong Hall, July 28. Photo: Pham Thang

Female workers petitioned the National Assembly to amend the law to increase the subsidy level and reduce the contribution rate to less than 1% for workers. Competent authorities should consider adding regulations to support workers in cases where their jobs are affected by natural disasters and epidemics, similar to the VND38,000 billion package from the Unemployment Insurance Fund.

Sharing the view of increasing the spending regime from the short-term fund, Mr. Nguyen Duc Dai, a worker at Mao Khe Coal Company, said that the surplus of the Occupational Accident and Disease Insurance Fund reached more than 65,000 billion VND, but the amount spent each year is only more than 1,000 billion VND, which is small, and the spending content is narrow. Meanwhile, workers need to be treated when their health declines, supported with periodic health check-ups, and improved working conditions.

He cited coal and mineral workers working in mines, exposed to coal dust, and prone to occupational hazards. "I propose that the National Assembly consider amending the Law on Occupational Safety and Health soon to expand the coverage and add the above provisions to the law," he said.

Mr. Nguyen Duc Dai, a coal industry worker, expressed his opinion on expanding the payment regime from the Occupational Accident and Disease Insurance Fund at the forum on July 28, Photo: Pham Thang

Responding to workers' concerns, Chairwoman of the Social Affairs Committee Nguyen Thuy Anh said that the Unemployment Insurance Fund had a large surplus before the pandemic. This amount was left over from previous years due to low spending levels and 1% state budget support. However, since 2014, the budget has stopped supporting, and by 2021, the Fund has allocated more than VND41,000 billion to support groups of workers in difficulty and exempt businesses from paying taxes to overcome the peak of the pandemic.

"Currently, the fund balance is at a safe level, not much left, so it is difficult to provide support like during the pandemic," said Ms. Thuy Anh.

According to Ms. Thuy Anh, in addition to the subsidy, the main purpose of unemployment insurance is to support workers to quickly return to the market through vocational training, so it is necessary to focus on these policies. However, acknowledging the legitimate recommendations of workers, she said that the revised Employment Law project has been included in the National Assembly's law and ordinance making program for 2024. The Social Committee will receive workers' opinions for study during the process of examining the bill.

General Director of Vietnam Social Security Nguyen The Manh also found that the conditions for paying unemployment insurance are still strict. The revised law needs to be loosened so that the policy can truly support workers in times of urgent need for employment and income reduction.

Regarding the Occupational Accident and Disease Insurance Fund, Minister of Labor, War Invalids and Social Affairs Dao Ngoc Dung analyzed that the fund is short-term but spends on many long-term contents. However, because of low spending levels and narrow spending regimes, the fund has a large surplus. During the pandemic, the contribution rate was reduced to support businesses to overcome difficulties.

According to Mr. Dung, the policy aims to encourage businesses to prevent risks for workers and those that do well should be given priority to reduce the contribution rate. The remaining amount will support workers in recovery and care in case of risks. Reducing the long-term contribution rate needs to be studied when amending the law.

Minister of Labor, Invalids and Social Affairs Dao Ngoc Dung responded to workers' petitions at the forum on July 28. Photo: Pham Thang

Unemployment insurance, occupational accident and occupational disease insurance are regimes for employees who pay compulsory social insurance. In which, unemployment insurance compensates a part of the income of employees when they lose their jobs, supports employees in vocational training and job search based on contributions to the Unemployment Insurance Fund. Current regulations stipulate that employees contribute 1% of monthly salary, and businesses contribute 1% of the monthly salary fund of the total number of employees participating in unemployment insurance.

Within 3 months from the date of termination of the labor contract, the employee submits an application for unemployment benefits at the provincial or municipal Employment Service Center to complete the procedures. The duration of benefits is based on the number of months of payment, 12-36 months of payment will receive 3 months of benefits; additional 12 months of payment will receive an additional month of benefits, up to a maximum of 12 months.

The monthly allowance is equal to 60% of the average monthly salary for unemployment insurance contributions for the 6 consecutive months before leaving work, not exceeding 5 times the basic salary or regional minimum wage. The highest monthly allowance is currently 9 million VND for state-paid workers and 23.4 million VND for workers in the enterprise sector.

The Occupational Accident and Disease Insurance Fund is partly used to pay for the assessment of injuries and illnesses caused by accidents and occupational diseases for employees during the working process. Current regulations require business owners to deduct 0.5% of the monthly salary fund as the basis for social insurance contributions; the rate of 0.3% applies to businesses in industries with high risks of occupational accidents and diseases that meet the conditions.

In the period 2016-2021, the Social Insurance agency resolved for more than 52,000 people to receive occupational accident and disease insurance benefits. 16,000 people received monthly benefits and nearly 36,000 people received one-time benefits. In 2021, the average benefit level was about 1.2 million VND per month, the increase in benefits was mainly due to the same period adjustment as pensions.

Expenditures for the Occupational Accident and Disease Insurance Fund increased, but accounted for a small portion of the balance. In 2020, expenditures were about VND 884 billion while the balance was more than VND 54,000 billion. By 2025, this fund will still be balanced.

Hong Chieu - Son Ha

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