Unemployment benefits need to be increased
According to Clause 1, Article 50 of the 2013 Law on Employment, the monthly unemployment benefit is equal to 60% of the average monthly salary for unemployment insurance contributions of the 6 consecutive months before unemployment, but not exceeding 5 times the basic salary for employees subject to the salary regime prescribed by the State or not exceeding 5 times the regional minimum wage as prescribed by the Labor Code for employees paying unemployment insurance according to the salary regime decided by the employer at the time of termination of the labor contract or employment contract.
Commenting on the Law on Employment (amended), the Vietnam General Confederation of Labor proposed that the drafting unit study and adjust the monthly unemployment benefit level to 75% of the average monthly salary for unemployment insurance contribution 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. Therefore, it is appropriate to increase the unemployment benefit to at least 75% (equal to the maximum pension level) to create conditions to support employees to have a minimum living when they lose their jobs or become unemployed.
With the proposed 75% increase, many workers, especially older workers, feel extremely happy and more secure in case they become unemployed.
Mr. Tran Van Thang (32 years old, Nam Dinh) - a shoe sole gluing worker shared that he had received unemployment insurance for 4 months. The low unemployment benefit level made it quite difficult for him to ensure his family's life. "The basic salary for insurance in rural areas is quite low, not as high as in urban areas. Previously, I received unemployment benefits of 60% of my average salary, which was only over 2.3 million VND. With this benefit level, it is difficult to cover expenses for myself, let alone my whole family" - Mr. Thang said.
The male worker said that 2.3 million VND is only enough to pay for food, electricity, water, and simple clothes for a month for an adult, not to mention other expenses. Raising another child requires at least 1 million VND/month more.
That is also the reason why Mr. Thang did not dare to quit his job to receive unemployment benefits when his wife was pregnant or on maternity leave. Because at this time, his wife's income was not much, just over 6 million VND/month. If he quit his job, the whole family's life would be even more difficult.
To improve his income during his unemployment period, Mr. Thang has taken on other freelance jobs such as repairing and installing household electrical appliances. According to the male worker, the proposed increase of 75% would be much more practical in life. “Previously, if it had increased to 75%, I could have received nearly 3 million VND in unemployment benefits. Now that my insurance salary has increased to more than 4.1 million VND, I will receive 3.1 million VND, much higher than before, to support my wife,” Mr. Thang confided.
Need to be reserved to pay unemployment insurance
With the proposal to research and develop regulations in the direction of "workers are entitled to unemployment benefits for unemployment insurance participation period of over 144 months" of the Vietnam General Confederation of Labor, many workers expressed their agreement.
According to the Vietnam General Confederation of Labor, if employees pay 144 months of unemployment insurance but do not receive unemployment benefits, with more months of payment, they will work for 12 years and then stop receiving unemployment benefits. Taking 12 months off will create a risk of withdrawing social insurance at once, affecting social security policies in general and businesses in particular will lose long-term employees, or employees will cooperate with employers to take advantage of unemployment benefits policies. This regulation will make employees not interested in returning to formal labor relations.
Mr. Doan Van Tien (name changed) has paid unemployment insurance for 8 years and 9 months. Recently, he quit his job and applied for unemployment benefits. The unemployment benefits he receives are 4.4 million VND/month, for a maximum of 8 months.
Mr. Tien said that the suggestion of the Vietnam General Confederation of Labor is to consider the regulation that unemployment insurance payment period of more than 144 months cannot be retained to calculate unemployment benefits for the next time. According to him, in reality, there are many employees who have paid unemployment insurance for more than 12 years. If the unemployment insurance payment period of more than 12 years is not retained to calculate unemployment benefits for them for the next time, it is unreasonable. "I think that they need to have the number of years beyond 12 years reserved to be able to continue paying unemployment insurance, ensuring their rights if they are unfortunately unemployed again," said Mr. Tien.
Regarding concerns that unemployment insurance fraud may lead to, Mr. Tien said that all employees want a stable job and income; losing a job is a last resort. “There may be cases of fraud, but in my opinion, we need to strengthen the management of state agencies in this field, not set up regulations that cause disadvantages for employees,” Mr. Tien shared.
In addition, many opinions also believe that the research and development of a voluntary unemployment insurance policy as proposed by the Vietnam General Confederation of Labor is necessary, promoting the significance of the unemployment insurance fund, creating social justice. Ms. Nguyen Thi Lan Huong - former Director of the Institute of Labor Science and Social Affairs - expressed her agreement with the proposal to develop a voluntary unemployment insurance policy, because "anyone can lose their job".
