The applicable Employment Law stipulates the payment rate of 1 percent for unemployment insurance to both employees and their employers. However, reality has shown that this fixed rate has created much trouble for these two groups, particularly when natural disasters, epidemics, economic recession, or financial crises happen.
Therefore, in the latest report to the Government as to amendments in the Employment Law to be consistent with the Labor Code 2019 and the Social Insurance Law, the Ministry of Labor, War Invalids, and Social Affairs proposes flexible unemployment insurance payment rates.
In particular, it is recommended that laborers contribute 1 percent of their monthly salary at most while employers pay no more than 1 percent of their monthly salary fund for those registering for this insurance. The State sponsors the same amount as that of employers.
Meanwhile, the Ministry of Labor, War Invalids, and Social Affairs also suggests more subjects eligible to join this unemployment insurance program. The new group includes those with a labor contract of 1 month and above (instead of 3 months currently) as these people are at a high risk of losing job and in need of participating in the mandatory social insurance program.
The proposal of flexible unemployment insurance payment rates depending on specific economic context, according to experts on salary and labor, is necessary to aid businesses because the Unemployment Insurance Fund is quite surplus (over VND60.6 trillion – US$2.44 billion at the end of 2021).
