I. Definition of Unemployment Insurance

According to Article 3 of the 2013 Employment Law, unemployment insurance is a system designed to support workers when they lose their jobs by partially compensating their income. This is not just financial support but also includes vocational training, job search assistance, and career counseling services to help workers stabilize their lives and re-enter the labor market quickly.

II. Mandatory Participants in Unemployment Insurance

Under Article 43 of the 2013 Employment Law, both employees and employers are responsible for participating in unemployment insurance, with contributions set according to the law. The participants include:

1. Employees

Employees working under a labor contract or employment contract of at least three months (excluding retirees and domestic helpers). If an employee has multiple contracts simultaneously, the first contract is responsible for unemployment insurance participation.

2. Employers

This includes government agencies, public service units, armed forces units, political organizations, socio-political organizations, social organizations, professional associations, foreign agencies, international organizations operating in Vietnam, businesses, cooperatives, households, business households, cooperative groups, other organizations, and individuals who employ workers under an employment or labor contract.

III. Benefits of Participating in Unemployment Insurance

Eligible employees will receive unemployment benefits and opportunities for new employment. The full benefits that participants can enjoy include:

3.1 Unemployment Allowance

When employees lose their jobs, unemployment allowance helps to partially replace their income. To qualify, employees must meet the conditions set out in Article 49 of the 2013 Employment Law, including:

• Termination of the labor contract (excluding cases of unlawful unilateral termination or ongoing receipt of a retirement pension or monthly incapacity allowance).
• At least 12 months of unemployment insurance contributions in the 24 months preceding the termination of the labor contract.
• Being unemployed for at least 15 days after applying for unemployment benefits.
• Submission of an application for unemployment benefits at an employment service center established by the state employment management authority within three months of contract termination.

3.2 Job Counseling and Placement Support

Employees are provided with free counseling and job placement services after their labor contract ends.

3.3 Vocational Training Support

Unemployment insurance also helps employees learn new skills to increase their employability.

3.4 Training, Retraining, and Skill Enhancement Support

To maintain employment, employees receive support for training and improving their professional skills to stay in their current jobs.

IV. Unemployment Insurance Contribution Rates

According to Article 57 of the 2013 Employment Law, the unemployment insurance contribution rates are as follows:

• Employees contribute 1% of their monthly salary.
• Employers contribute 1% of the monthly salary fund for employees participating in unemployment insurance.
• The state supports up to 1% of the monthly salary fund for employees participating in unemployment insurance, with funding guaranteed by the central government budget.

Therefore, the unemployment insurance contribution rate requires the employer to contribute 1% of the monthly salary fund for participating employees, employees to contribute 1% of their monthly salary, and the state to support up to 1% of the contribution amount.

V. Unemployment Insurance Benefits

According to Clause 1, Article 50 of the 2013 Employment Law, the monthly unemployment insurance benefit is 60% of the average monthly salary for which unemployment insurance was paid over the six months preceding job termination.

• For employees subject to the wage regime prescribed by the state: the maximum unemployment insurance benefit is no more than five times the basic salary.
• For employees participating in unemployment insurance based on a salary determined by the employer: the maximum unemployment insurance benefit is no more than five times the regional minimum wage at the time of contract termination.

VI. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

■ Contact Hankuk Law Firm:

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