Unemployment insurance in fact is not a new policy. However, in the context of a fluctuant economy, which has been bringing negative impacts to laborers, the policy more or less will give jobless laborers strength to confidently seek for another career in the future. The policy has been introduced, but the people still raise concerns about its feasibility.
A regulation to this effect has been launched since January 1, 2009 at the same time the Law on Insurance officially came into force, proving the government’s efforts and determination in protecting interests of laborers. Under the regulation, a Vietnamese worker with a job contract of at least 12 to 36 months or timelessness will be eligible for unemployment insurance if they lose their jobs.
To receive the unemployment benefits, the laborer needs to meet with specific conditions after becoming unemployed or having his or her labor contract terminated. In accordance with regulations of labor laws, the unemployed person must have paid into the insurance for at least 12 months and registered for the unemployment insurance with the social insurance agency in order to receive compensation.
Under the new regulation, both employees and employers will contribute 1 percent of their monthly salary to a fund for unemployment insurance, and the state will do the same from the state budget.
The insurance will pay the unemployed 60 percent of the salary they were receiving over the previous six months.
The period in which applicants can receive the insurance is three months if they have paid fully for 12 to 36 months of the unemployment insurance; six months for 36 to 72 months; nine months for 72 to 144 months; and 12 months if the duration of unemployment insurance payment is enough 144 months and above.
Apart from the monthly unemployment benefits, the unemployed will also enjoy other benefits. In detail, laborers will be granted vocational training and given health insurance in accordance with the regulations.
The support for vocational training for the unemployed will be equal to the expense for a short-term vocational training course in the state regulations on vocational education. A vocational training course for the unemployed will last for six months since the day they receive the unemployment benefits.
Under the regulation, the vocational training for laborers in this case will depend on duty of local labor agencies, specifically the department of labor, invalids and social affairs, vocational training centers and schools as well as job introduction centers in each locality.
According to Pham Do Nhat Tan, head of the Social Insurance Department under the Ministry of Labor, Invalids and Social Affairs, the new policy on unemployment benefits will help limit risks from losing one's job.
According to surveys made by the Ministry of Labor, Invalids and Social Affairs, the unemployment situation, particularly in South, is becoming serious. However, as the law on unemployment insurance was put into operation, employees and enterprises just paid the unemployment insurance, which means that till January 1 2010, jobless laborers could receive the unemployment benefits. So in the short term, the new policy on unemployment insurance is unable to show its effect.
In order to timely assist the number of laborers who have already lost their job, the Prime Minister has asked the Ministry of Labor, Invalids and Social Affairs to urgently cooperate with the Ministry of Finance to propose an over-all solution to support the unemployed who have lost their job due to the economic downturn.
Accordingly, the assistance policy to jobless laborers will focus on three main contents:
First, Vietnam Development Bank will loan money to enterprises who are meeting financial difficulties and unable to make payment so that companies can pay salary, social insurance and unemployment benefits for their workers.
Second, more funding will be given to the Fund for Job Settlement under the national target programme to lend money to households with jobless laborers in order to create their own private business.
Third, jobless laborers who are in need of loans can seek aid with the Social Policy Bank, which can help the laborer serve an apprenticeship, find a new job or register for labor contract abroad.
Thi Van
Vietnamese
