In Decree No. 374/2025/ND-CP detailing a number of articles of the Law on Employment on unemployment insurance (BHTN), for the first time, state management agencies established a mechanism to support the BHTN Fund from the state budget (NSNN) with specific principles.
Accordingly, the state budget can support up to 1% of the monthly salary fund for UI contributions of employees participating in UI.
This regulation aims to ensure maintaining the annual fund balance equal to 2 times the total expenditures of unemployment insurance regimes, and expenditures on organization and unemployment insurance activities of the immediately preceding year.
According to Ms. Vu Thi Thanh Lieu - Deputy Director of the Hanoi City Employment Service Center (Hanoi City Department of Home Affairs), the regulation requiring the unemployment insurance fund balance to be at least 2 times the total regime expenditure and expenses of the previous year is considered a new financial standard.
In terms of meaning, first of all, this regulation helps ensure the long-term stability of the fund, increasing resilience to events such as natural disasters, epidemics, and economic crises. In fact, during the COVID-19 period, it shows that when there is a large enough fund, the payment of support for workers is carried out promptly and widely.
In addition, maintaining such a balance level helps reduce payment pressure, avoiding passivity when benefit demand increases sharply. When the fund always has sufficient reserves, payment becomes more proactive and stable.
This regulation also contributes to increasing workers' trust in the policy. When knowing that the fund has the ability to ensure payment even in difficult situations, workers will feel secure in participating and believe in their rights" - Ms. Lieu analyzed.
From a management perspective, this is also a standard to ensure transparency, avoid uncontrolled use of funds, limit the risk of deficits or sudden supplements, thereby reducing adverse impacts on both businesses and employees.
The meaning of the regulation can be seen as a similar approach to the mandatory reserve mechanism in the banking sector, to ensure safety for the payment system. In terms of overall impact, for employees, their rights are guaranteed even in crisis situations, helping them feel secure that they will be paid promptly when losing their jobs" - Deputy Director of Hanoi Employment Service Center Vu Thi Thanh Lieu emphasized.
For businesses, this mechanism creates stability, thanks to sharing from the state budget, avoiding the pressure to make sudden additional contributions when facing difficulties. And the State continues to play the role of "last resort" in unemployment insurance policies, contributing to ensuring social security.
