Have to do temporary work to earn extra income
More than a year ago, Ms. Nguyen Thi Loan (name has been changed - residing in Vinh Phuc) terminated her labor contract and officially became unemployed. She had participated in unemployment insurance for 11 years at 2 companies in Hanoi and Vinh Phuc. After quitting her job, she completed the procedures to receive unemployment benefits. "I received unemployment benefits of 2,835,000 VND/month for 11 months" - Ms. Loan said.
This small amount of money only partially eases her family's difficulties during the time she was unemployed. "If I only depended on unemployment benefits, I certainly wouldn't be able to cover the minimum expenses for my family. My husband is a freelancer, earning 7-8 million VND/month, while my two children are still in school age," Loan shared.
To earn more income, she had to take a temporary job, which paid 300,000 VND/day. Adding unemployment benefits, the temporary job payment and her husband's income, it was enough to cover her family's living expenses.
According to the draft Law on Employment (amended), the monthly unemployment benefit is equal to 60% of the average monthly salary for unemployment insurance contributions of the 6 most recent months of unemployment insurance contributions before unemployment, but not exceeding 5 times the regional minimum monthly salary announced by the Government in the last month of unemployment insurance contributions.
The duration of unemployment benefits is calculated based on the number of months of unemployment insurance contributions. For every 12 to 36 months of contributions, you will receive 3 months of unemployment benefits. After that, for every additional 12 months of contributions, you will receive 1 more month of unemployment benefits, but not exceeding 12 months. This provision is basically the same as the provision in the 2013 Employment Law.
Support workers to have a minimum living when they lose their jobs
Mr. Nguyen Thai Duong - Vice President of the Vietnam Textile and Garment Trade Union - said that in Vietnam, the unemployment rate is low compared to developing countries, but the quality of jobs and income are not high. Mr. Duong said that the current unemployment benefit payment is still low. "Many workers in the textile and garment industry think that the 60% benefit rate is very low, and may not be able to ensure their minimum living standards," Mr. Nguyen Thai Duong informed.
Vice President of Vietnam Textile and Garment Trade Union - also said that it is necessary to clarify the basis for controlling the unemployment insurance period to no more than 12 months.
Regarding this content, the Vietnam General Confederation of Labor requested the unit drafting the draft Law on Employment (amended) to study and adjust the monthly unemployment benefit level to 75% of the average monthly salary for unemployment insurance payment most recently before unemployment.
The reason given by the Vietnam General Confederation of Labor is that, in reality, most businesses pay unemployment insurance for employees according to the regional minimum wage set by the Government, while the current regional minimum wage is still low.
According to the Union, it is appropriate to increase unemployment benefits to at least 75% (equal to the maximum pension level) to create conditions to support workers to have a minimum living standard when they lose their jobs or become unemployed.
Mr. Do Van Quang - Vice President of the Vietnam Construction Trade Union - also expressed concern about the regulation on receiving 60% but not exceeding 5 times the regional minimum wage. In addition, Mr. Quang said that with the regulation on handling enterprises that are late in paying or evading unemployment insurance in the draft, if it can be proven that the employer still deducts money from the employee (but does not pay), the employee will still receive unemployment benefits as usual; as for how to collect the money, it is the responsibility of the State agency.
