Job Alerts
- 2025 Employment Law (Law 74/2025/QH15) and Decree 374/2025/ND-CP are effective from January 1, 2026.
- New regional minimum wages apply from January 1, 2026 under Decree 293/2025/ND-CP.
- The benefit start date is the 11th working day after a complete application is submitted.
1. What is unemployment insurance?
Unemployment insurance (UI) provides partial income replacement when employees lose their jobs, while also supporting job consultation, placement, and vocational training. The UI fund is formed from employee and employer contributions and state support under the 2025 Employment Law.
The law provides for employee and employer contributions of up to 1% of the corresponding salary basis, with the specific rate implemented according to government regulations from time to time.
2. Formula for unemployment benefits in 2026
Ceiling: no more than 5 times the regional minimum wage applicable in the final month of UI contribution.
Benefit duration
Contributing from 12 to 36 months qualifies for 3 months of benefits; after that, every additional 12 months qualifies for 1 additional month, up to 12 months.
Illustrative example
Ms. B works in Region I, has an average UI-contribution salary of VND 20,000,000 for the latest 6 months, and has 50 months of unused contributions:
- Monthly benefit = VND 20,000,000 × 60% = VND 12,000,000, below the Region I ceiling.
- Benefit duration: 50 months corresponds to 4 months.
- Estimated total benefit = VND 12,000,000 × 4 = VND 48,000,000.
3. Key unemployment benefit rules
3.1. Eligibility conditions
The employee must satisfy all conditions under Article 38 of the 2025 Employment Law:
- Employment ends lawfully and the employee is not leaving after becoming eligible for a pension.
- UI contributions total at least 12 months within the 24 months before termination in ordinary cases. For contracts from 1 month to under 12 months, at least 12 months within the 36 months before termination is required.
- A complete application is submitted within 3 months from termination.
- Within 10 working days after submitting a complete application, the employee does not fall into specified disqualifying situations such as obtaining new compulsory-insurance employment, military or police service, studying for more than 12 months, detention or imprisonment, permanent settlement abroad, or death.
3.2. Required documents
- Application for unemployment benefits using the current form.
- Document confirming termination of the employment contract or employment.
- Verified UI participation history.
- Identification and payment-account information as required.
3.3. Filing deadline and benefit start date
The application must be submitted within 3 months from termination. Benefits start on the 11th working day after a complete application is submitted.
3.4. Benefit amount and duration
The benefit equals 60% of the average salary for the latest 6 months with UI contributions, subject to a ceiling of 5 times the regional minimum wage. The duration ranges from 3 to a maximum of 12 months according to unused contribution months.
4. Suspension or termination of benefits
Benefits may be suspended when the employee fails to make the required monthly job-search notification. Benefits may terminate when the employee:
- Starts new employment subject to compulsory SI.
- Performs military, police, or standing militia service.
- Receives a monthly pension.
- Rejects suitable jobs introduced by a public employment service twice without a valid reason.
- Fails to report job searching for 3 consecutive months.
- Moves abroad for permanent settlement, studies for more than 12 months, is detained, or serves a prison sentence.
- Is sanctioned for an administrative violation related to UI, dies, or is declared missing by a court.
- Voluntarily requests termination of benefits.
Note: preservation of the remaining contribution period depends on the reason for termination and compliance with notification obligations under Article 41 of the 2025 Employment Law.
