Regulations on unemployment benefits under the law on employment 2025

Unemployment benefits are one of the regimes under unemployment insurance, aimed at compensating a portion of employees’ income when they lose their jobs, on the basis of contributions to the unemployment insurance fund. From a macro perspective, unemployment benefits help mitigate the negative impacts of job loss on the socio-economic situation by maintaining a minimum level of consumption for employees, reducing the risk of social issues, and contributing to the stabilization of the labor market. Accordingly, this policy reflects the State’s role in regulation and in ensuring social security in the context of employment fluctuations. 

As of 01 January 2026, the Law on Employment 2025 officially comes into effect, replacing the Law on Employment 2013, and introduces a number of adjustments related to the unemployment benefit regime. This article presents several provisions on unemployment benefits under the Law on Employment 2025. 

1. Changes in regulations on unemployment insurance contribution rates 

Pursuant to Article 33 of the Law on Employment 2025, unemployment insurance contribution rates are prescribed as follows: 

• Employees contribute up to 1% of their monthly salary; 

• Employers contribute up to 1% of the monthly payroll fund of employees participating in unemployment insurance; 

• The State supports up to 1% of the monthly payroll fund used as the basis for unemployment insurance contributions of participating employees, which is guaranteed by the central government budget. 

Meanwhile, under Article 57.1 of the Law on Employment 2013, the unemployment insurance contribution rates of the above subjects are fixed at 1%, calculated on the basis of: 

• the monthly salary (for employees); and 

• the monthly payroll fund of employees participating in unemployment insurance (for employers). 

Thus, compared to the Law on Employment 2013, the Law on Employment 2025 has shifted from a “fixed contribution rate” mechanism to a “contribution cap” mechanism, allowing employees and employers to apply a contribution rate lower than 1%. 

This is a flexible regulation that directly affects the unemployment insurance contribution obligations of both employees and employers. However, the application of specific contribution rates must be implemented in accordance with the guidance of competent state authorities, in order to ensure that participation in unemployment insurance is uniform and compliant with legal regulations. 

2. Regulations on unemployment benefits 

2.1. Conditions for entitlement to unemployment benefits 

Employees who are subject to participation in unemployment insurance are entitled to unemployment benefits when fully meeting the following conditions: 

(i) Currently participating in unemployment insurance; 

(ii) Termination of the labor contract, working contract, or cessation of work in accordance with the law, except for the following cases: 

• the employee unilaterally terminates the labor contract in violation of the law; or 

• the employee leaves work upon being eligible for pension benefits. 

(iii) Having paid unemployment insurance for at least 12 months within the 24 months prior to the termination of the labor contract, working contract, or cessation of work in accordance with the law. 

In case the employee works under a fixed-term labor contract of from 01 month to less than 12 months, the employee must have paid unemployment insurance for at least 12 months within the 36 months prior to the termination of the labor contract. 

(iv) Having submitted a complete dossier for unemployment benefits within 03 months from the date of termination of the labor contract, working contract, or cessation of work. 

(v) Within 10 working days from the date of submission of a complete dossier for unemployment benefits, the employee does not fall into: 

• any of the cases of having employment; and 

• the subjects participating in compulsory social insurance under the law on social insurance, or performing military service, service in the People’s Public Security, standing militia, or undertaking a study program with a duration of more than 12 months, or complying with a decision on compulsory education institution placement, compulsory detoxification institution placement, or being held in custody, serving a prison sentence, or going abroad for permanent residence, or deceased. 

2.2. Level, duration, and commencement time of unemployment benefits 

(i) Level of unemployment benefits: 

Pursuant to Article 39.1 of the Law on Employment 2025, employees are entitled to a monthly unemployment benefit equal to 60% of the average monthly salary on which unemployment insurance contributions were paid for the 06 most recent months prior to the termination of the labor contract, working contract, or cessation of work, but not exceeding 05 times the regional monthly minimum wage announced by the Government and applied in the last month of unemployment insurance contribution. 

According to the provisions on the regional monthly minimum wage in Article 3 of Decree No. 293/2025/ND-CP (effective from 01 January 2026), the maximum monthly salary used as the basis for unemployment insurance contributions is determined as follows: 

(ii) Duration of unemployment benefits: 

Pursuant to Article 39.2 of the Law on Employment 2025, the duration of unemployment benefits is calculated based on the number of months of unemployment insurance contributions, specifically: 

• from 12 months to 36 months of contributions: 03 months of unemployment benefits; 

• thereafter, for each additional 12 months of contributions, the employee is entitled to 01 additional month of unemployment benefits, with the maximum duration not exceeding 12 months. 

(iii) Commencement time of unemployment benefits: the 11th working day from the date of submission of a complete dossier for unemployment benefits. 

Date written: 20/12/2025

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