Support increasing unemployment benefits to 75% of average wages

Mạnh Cường |

The Vietnam General Confederation of Labor has proposed increasing unemployment benefits to 75% instead of the current 60%.

With a 75% increase, many workers, especially older workers, feel more secure in case they become unemployed.

Ms. Vu Thi Van (46 years old, Ha Nam) shared that increasing unemployment benefits to 75% is extremely practical, especially for rural and elderly workers.

Explaining this point of view, Ms. Van said: “After 11 years of working, the salary for insurance has only increased by more than 1 million VND, from 3.3 million VND to nearly 4.4 million VND. Receiving 60% is not much.”

According to the female worker, the salary for insurance at the company only includes the regional minimum wage and a seniority allowance, not many allowances like other companies. Meanwhile, according to Ms. Van, the regional minimum wage in rural areas is quite low, not as high as in the city or the capital.

Ms. Van shared that with the current 60% benefit, if she takes unemployment leave, she will only receive 2,640,000 VND. If she receives 75%, she will receive 3,300,000 VND. Each month, it increases by nearly 700,000 VND.

Tang muc huong len 75%, chi Van se co them gan 700.000 dong khi huong tro cap that nghiep (Anh: Manh Cuong)
Increasing the benefit level to 75%, Ms. Vu Thi Van will have nearly 700,000 VND more when receiving unemployment benefits. Photo: Manh Cuong

For Ms. Van, unemployment benefits are like a practical lifeline if she quits or loses her job. The bigger this lifeline is, the more secure she will be, even if the company lays her off, she won't have to worry too much.

Ms. Pham Thi Phuong Thanh (28 years old) - a garment worker in Thai Binh - said that the proposal to increase the benefit level to 75% is completely reasonable and should be approved soon.

Sharing this view, Ms. Huong said that in addition to themselves, workers also have dependents. Children have siblings and parents, adults have children and families. When unemployed, it will affect many other relatives.

“Even if I eat frugally, I still need at least 1.5 million VND. Then there is the tuition fee for my children and the living expenses for the whole family. The high unemployment benefits help me feel secure and not become a burden on my family,” said Ms. Thanh.

The female worker said that the proposal should be implemented as soon as possible so that workers can work with peace of mind and support participation in social insurance. In addition, Ms. Thanh suggested that if workers have dependents who need care or if both husband and wife are unemployed, the maximum benefit should be increased to 100%.

Ms. Nguyen Thi Toan (50 years old, Nam Dinh) - a leather shoe worker - said that increasing unemployment benefits to 75% will make her feel more secure when she loses her job.

“Our age group is extremely worried every time the company has less work. Because when there is less work, the company will consider cutting staff, in which the elderly and those with low skills are the first to be cut,” Ms. Toan confided.

Sharing more, Ms. Toan said that the current insurance salary is 5,100,000 VND. With 60%, she only gets nearly 3.1 million VND/month, but if she gets 75%, she will get more than 3.8 million VND/month.

With the proposed 75% benefit, Ms. Toan is expected to receive more than 4 million VND/month after 2 years. This benefit will help her enjoy the full 12 months of unemployment without having to work more or worry about her children.

According to the current Employment Law, when quitting or losing a job, employees will receive unemployment benefits equal to 60% of the average monthly salary for the last 6 months of insurance contributions.

The Law on Employment (amended) is expected to be completed and submitted to the National Assembly in October 2024.

Mạnh Cường
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