Unemployment Insurance and Conditions, Benefits, and Procedures for Benefiting in the US

Unemployment Insurance and Conditions, Benefits, and Procedures for Benefiting in the US Unemployment Insurance: What It Is and How It Works

Unemployment insurance holds significant importance for workers, helping to alleviate financial burdens during periods of joblessness. To better understand unemployment insurance policies, please read the following comprehensive guide.

1. What is Unemployment Insurance?

In challenging economic times, unemployment insurance serves as a lifeline that helps resolve many difficulties faced by workers.

Unemployment insurance is a system that compensates a portion of a worker’s income when they lose their job. It also supports vocational training and assists workers in maintaining and finding employment. This system is funded through contributions to the Unemployment Insurance Fund (according to Clause 4, Article 3 of the 2013 Employment Law).

As regulated in Article 43 of the 2013 Employment Law, both employees and employers are obligated to participate in this insurance scheme.
Unemployment Insurance and Conditions, Benefits, and Procedures for Benefiting in the US

2. Monthly Contributions to Unemployment Insurance

According to Article 57 of the 2013 Employment Law, the monthly unemployment insurance contributions from employees and employers are as follows:

• Employees contribute 1% of their monthly salary.

• Employers contribute 1% of the monthly payroll fund for the participating employees.

The salary basis for unemployment insurance contributions is the same as the compulsory social insurance salary base, with the following maximum salary caps:

• For employees under the state-regulated salary regime:
  Maximum contribution salary = 20 times the basic salary = 29.8 million VND/month.

• For employees under employer-determined salary regimes:
  Maximum contribution salary = 20 times the regional minimum salary.

3. Eligibility Conditions for Unemployment Insurance Benefits

According to Article 42 of the 2013 Employment Law, unemployment insurance includes the following benefits: unemployment allowance; job counseling and introduction; vocational training support; and training to improve professional skills to maintain employment. Each benefit has specific eligibility requirements as detailed below.

3.1 Conditions for Receiving Unemployment Allowance

Pursuant to Article 49 of the 2013 Employment Law, employees must meet all the following criteria to be eligible for unemployment benefits:

• Have terminated their labor contract or employment contract.

  Exceptions: illegal unilateral contract termination, receiving a pension, or monthly disability allowance.

• Have paid unemployment insurance for at least 12 months within the 24 months prior to contract termination.

• Submit an application for unemployment allowance to the employment service center within 3 months from the contract termination date.

• Remain unemployed 15 days after submitting the application to the employment service center.

  Exceptions: fulfilling military or police duties, temporary detention, emigrating abroad, death, etc.

3.2 Conditions for Receiving Job Counseling and Introduction

Per Article 54 of the 2013 Employment Law, employees who are currently paying unemployment insurance and have had their labor or employment contract terminated, and who wish to find a job, will be provided with free job counseling and introduction.

3.3 Conditions for Receiving Vocational Training Support

According to Article 55 of the 2013 Employment Law, employees will receive vocational training support if they satisfy all of the following:

• Have terminated their labor or employment contract.

  Exceptions: illegal unilateral termination, receiving pension or monthly disability allowance.

• Have contributed to unemployment insurance for at least 9 months within 24 months prior to contract termination.

• Submit an application for unemployment insurance benefits to the employment service center within 3 months from contract termination.

• Remain unemployed 15 days after submitting the application.

  Exceptions: performing military or police duties, temporary detention, emigrating abroad, death, etc.

3.4 Conditions for Receiving Support for Training to Maintain Employment

This support is specifically for employers. To be eligible, employers must meet all the conditions set forth in Article 47 of the 2013 Employment Law:

• Have continuously contributed to unemployment insurance for their employees for at least 12 months prior to the support request.

• Face difficulties due to economic downturns or force majeure requiring changes in structure or technology.

• Lack sufficient funds to organize training or skill improvement for employees.

• Have a training and employment maintenance plan approved by competent authorities.
  Unemployment Insurance and Conditions, Benefits, and Procedures for Benefiting in the US

4. How Much is the Unemployment Insurance Benefit?

4.1 Unemployment Allowance

According to Article 50 of the 2013 Employment Law, the monthly unemployment allowance is calculated as:

Monthly allowance = 60% × average monthly salary subject to unemployment insurance contributions over the last 6 months before unemployment

Duration of benefits is based on the length of contribution:

• Contributing 12–36 months: 3 months of allowance.

• For every additional 12 months contributed, receive an extra 1 month allowance.

• Maximum benefit period is 12 months.

4.2 Support for Job Counseling and Introduction

As per Article 54 of the 2013 Employment Law, unemployed workers are entitled to free job counseling and introduction services at employment service centers.

4.3 Vocational Training Support

Under Article 3 of Decision 17/2021/QĐ-TTg:

• For training courses up to 3 months: support equals the actual tuition fees charged by the training institution, up to a maximum of 4.5 million VND per course per person.

• For courses longer than 3 months: support is calculated monthly based on tuition fees and actual training time, capped at 1.5 million VND per person per month.

4.4 Support for Training to Maintain Employment

According to Article 4 of Decree 28/2015/NĐ-CP, eligible employers can receive funding for training their employees to maintain employment:

Maximum support: 1 million VND per person per month

Support is based on actual training months but cannot exceed 6 months.

5. Procedures to Claim Unemployment Insurance Benefits

This section guides employees on claiming unemployment insurance benefits, focusing primarily on unemployment allowances.

5.1 Required Documents

According to Article 16 of Decree 28/2015/NĐ-CP (amended by Decree 61/2020/NĐ-CP), the application dossier includes:

• Application form for unemployment benefits (according to the prescribed template).

• Original or certified copy of one of the following documents:

  • Expired or completed labor contract.

  • Document confirming contract termination.

  • Decision of dismissal or termination.

  • Disciplinary decision forcing contract termination.

  • Notification or agreement on contract termination.

  • Employer’s confirmation specifying employee details, contract type, reason, and termination date.

  • Confirmation by competent authority regarding company or cooperative dissolution, bankruptcy, or removal of management in case the employee was a manager.

• Social insurance book.

5.2 Where to Submit

Based on Clause 1, Article 17 of Decree 28/2015/NĐ-CP, employees must submit the complete application directly to the local employment service center where they wish to receive benefits within 3 months from contract termination. Applications submitted after 3 months will not be processed, though the insurance period will be preserved for future claims.

5.3 When to Receive Benefits

Per Article 18 of Decree 28/2015/NĐ-CP, if the application is valid, the employment service center will review and submit to the Director of the Department of Labor, War Invalids and Social Affairs to decide on benefit entitlement within 20 working days. The decision is then sent to the employee.

Within 5 days of receiving the decision, the employee must go to the social insurance agency to receive the first month’s benefit. Afterwards, employees must regularly report job-seeking activities at the employment service center as required.

6. Frequently Asked Questions About Unemployment Insurance

6.1 Can Unemployment Insurance Periods Be Accumulated?

Question: I paid unemployment insurance for 3 years at my previous company but didn’t claim benefits. Now I’ve worked 6 months at a new company. Can my previous contributions be combined? — Minh Thu (Hanoi)

Answer: According to Clause 1, Article 45 of the 2013 Employment Law, unemployment insurance periods are cumulative from the start of contributions until contract termination. Even if contributions are not continuous due to job changes, total contribution periods are combined for benefit entitlement.

6.2 When Did Unemployment Insurance Start?

Question: I have been paying social insurance since 2000. Is my unemployment insurance period the same as my social insurance? When was unemployment insurance introduced? — Vu Loan (Hai Phong)

Answer: The 2006 Social Insurance Law first recognized unemployment insurance, effective from January 1, 2007, but unemployment insurance actually started being implemented on January 1, 2009. Currently, unemployment insurance is governed separately under the 2013 Employment Law. Therefore, employment contracts before 2009 do not count towards unemployment insurance.
Unemployment Insurance and Conditions, Benefits, and Procedures for Benefiting in the US

6.3 Can Unemployment Benefits Be Claimed as a Lump Sum?

Question: I’m over 50 and plan to retire soon without working anymore. Can I get my unemployment benefits as a one-time payment? — Thanh Minh (Vung Tau)

Answer: Currently, according to Article 50 of the 2013 Employment Law and Clause 2, Article 18 of Decree 28/2015/NĐ-CP, unemployment benefits are paid monthly and cannot be received as a lump sum.

6.4 Do Unclaimed Unemployment Benefits Expire?

Question: I quit my job over a year ago but haven’t claimed unemployment benefits. Will I lose my prior contributions? — Hai Nam (Hoa Binh)

Answer: According to Clause 1, Article 46 of the 2013 Employment Law, applications must be submitted within 3 months from contract termination. After this period, the employment center will no longer accept applications, but the contribution time will be preserved for future claims. Clause 1, Article 45 confirms that both continuous and non-continuous contribution periods are accumulated until the employee claims benefits or terminates their contract.