Circular No. 04/2009/TT-BLDTBXH detailing and guiding a number of Articles of the Social Insurance Law concerning unemployment insurance

CIRCULAR

GUIDING A NUMBER OF ARTICLES OF THE GOVERNMENT'S DECREE NO. 127/2008/ND-CP OF DECEMBER 12, 2008, DETAILING AND GUIDING A NUMBER OF ARTICLES OF THE SOCIAL INSURANCE LAW CONCERNING UNEMPLOYMENT INSURANCE

Pursuant to the Government's Decree No. 186/2007/ND-CP of December 25, 2007, defining the functions, tasks, powers and organizational structure of the Ministry of Labor, War Invalids and Social Affairs;

Pursuant to the Government's Decree No. 127/2008/ND-CP of December 12, 2008, detailing and guiding a number of articles of the Social Insurance Law concerning unemployment insurance,

The Ministry of Labor, War Invalids and Social Affairs guides a number of articles of the Government's Decree No. 127/2008/ND-CP of December 12, 2008, detailing and guiding a number of articles of the Social Insurance Law concerning unemployment insurance (below referred to as Decree No. 127/2008/ND-CP), as follows:

I. SUBJECTS AND SCOPE OF APPLICATION

The subjects and scope of application of this Circular are those defined in Articles 1,2 and 3 of Decree No. 127/2008/ND-CP.

II. UNEMPLOYMENT INSURANCE REGIMES

1. Unemployment allowance:

1.1. The unemployment allowance level under Clause 2, Article 16of Decree No. 127/2008/ND-CP is guided as follows:

The monthly unemployment allowance is equal to 60% of a laborer's average monthly salary or remuneration of six consecutive months before he/she loses a job or terminates a labor contract under the labor law or a working contract under the law on cadres and public employees, on which unemployment insurance premiums are based.

When a laborer did not pay unemployment insurance premiums for some time in the last months before he/she becomes unemployed because of his/her ineligibility for unemployment insurance premium payment according to regulations, the average monthly salary or remuneration of six consecutive months as a basis for calculating the unemployment allowance level is the average monthly salary or remuneration of six months during which the laborer has paid unemployment insurance premiums before he/she loses a job or terminates a labor contract under the labor law or a working contract under the law on cadres and public employees.

For example:

Nguyen Van Khang pays unemployment insurance premiums from January 1, 2009, to January 14, 2012, except October and November 2011 under regulations. He terminates his labor contract in January 2012; his salaries of the consecutive months before his unemployment, on which unemployment insurance premiums are based, are as follows:

If Khang is eligible for unemployment allowance, his monthly unemployment allowance is calculated as follows:

- The average salary of six consecutive months is:

(VND 2,450,000 + VND 2,750,000 + VND 2,750,000 + VND 2,950,000 + VND 2,800,000 + VND 2,650,000): 6 = VND 2,725,000/month.

- The monthly unemployment allowance he will receive is:

VND 2,725,000/month x 60% = VND 1,635,000/month.

1.2. The period of enjoying unemployment allowance under Clause 3, Article 16 of Decree No. 127/2008/ND-CP is guided as follows:

The period of enjoying monthly unemployment allowance depends on a laborer's working time during which unemployment insurance premiums have been paid, and the maximum period is guided as follows:

a/ Three (03) months, if the laborer has paid unemployment insurance premiums for between full twelve (12) months and less than thirty-six (36) months.

For example: Pham Thi Be has paid unemployment insurance premiums for 13 months within 24 months before she loses her job, she may receive unemployment allowance for three months at most.

b/ Six (06) months, if the laborer has paid unemployment insurance premiums for between full thirty-six (36) months and less than seventy-two (72) months.

For example: Pham Thanh Binh has paid unemployment insurance premiums for a total 71 months, including at least full 12 months within 24 months before he loses his job, he may receive unemployment allowance for 6 months at most.

c/ Nine (09) months, if the laborer has paid unemployment insurance premiums for between full seventy-two (72) months and less than one hundred and forty-four (144) months.

For example: Nguyen Van Hung has paid unemployment insurance premiums for a total 80 months, including at least full 12 months within 24 months before he loses his job, he may receive unemployment allowance for 9 months at most.

d/ Twelve (12) months, if the laborer has paid unemployment insurance premiums for from full one hundred and forty-four (144) months or more.

For example: Tran Thanh Tung has paid unemployment insurance premiums for a total 145 months, including at least full 12 months within 24 months before he loses his job, he may receive unemployment allowance for 12 months at most.

1.3. Suspension from unemployment allowance under Clause 1, Article 22 of Decree No. 127/2008/ND-CP is guided as follows: