Unemployment insurance in Vietnam provides income support, health coverage, and job assistance for eligible employees. terra helps you clearly understand eligibility requirements, application procedures, benefit entitlements, and key regulations in Vietnam with confidence.
What is unemployment insurance?
Unemployment insurance is defined as a policy designed to support workers when they become unemployed (Based on Clause 3, Article 4 of the 2013 Law on Employment). Specifically, it helps partially compensate lost income while enabling workers to receive vocational training, maintain employment, and seek new job opportunities through contributions to the Unemployment Insurance Fund.
In Vietnam, unemployment insurance (UI) is a mandatory obligation for both employees and employers. Beyond financial assistance during unemployment, this scheme plays an important role in helping workers return to the labor market with suitable jobs.
What unemployment insurance covers
The Employment Law stipulates 4 unemployment insurance regimes including:
- Unemployment Benefits (monthly allowance)
- Job Introduction & Career Counseling
- Support for Employee Vocational Training,
- Support for Employers Training & Skill Improvement to maintain employment
It is a financial allowance paid from the Unemployment Insurance Fund to support employees who become unemployed, with the payment level determined based on the employee’s prior contributions to UI.
Unemployment insurance in Vietnam
Understanding UI in Vietnam requires a detailed look at both the contributors and the contribution process.
Who pays and how contributions work
According to Clause 1, Article 57 of the 2013 Law on Employment, contributions to the Unemployment Insurance Fund are made under a shared-responsibility mechanism among employees, employers, and the State, specifically as follows:
- Employees: 1% of monthly salary (used as the basis for social insurance contributions)
- Employers: 1% of the monthly payroll of employees participating in UI.
- The State: Up to 1% of the monthly payroll fund, funded by the state budget.
From January 1, 2026, pursuant to the Employment Law 2025, the contribution framework is unified. Accordingly, the maximum UI contribution salary for all employees is capped at 20 times the regional minimum wage, as promulgated by the Government, thereby abolishing the separate base salary cap previously applied to State-regulated employees.
Note:
- Failure to contribute to UI may result in administrative penalties.
- If an employee has multiple labor contracts, UI is paid under the first contract only.
How unemployment insurance connects to the social insurance system
In Vietnam, Unemployment Insurance (UI) is a sub-system of the national social insurance (SI) system, not a separate scheme. It provides unemployment benefits and also supports vocational training, job placement, and labor market re-entry. While linked to social insurance, UI maintains relative independence due to its sensitivity to labor market fluctuations and economic cycles, primarily covering employees under labor contracts. Its organization and implementation differ from other purely benefit-based social insurance regimes.
Who is eligible for unemployment insurance in Vietnam?
To determine who can receive UI benefits in Vietnam, it is important to first understand which employees are covered and the types of labor contracts that qualify under current regulations.
Eligible employees and contract types
According to Article 49, Section 3 of the Employment Law 2013, employees will receive unemployment benefits when they fully meet the following conditions:
- The labor contract or working contract has been terminated, except in the following cases: employee unilaterally terminated the labor contract or working contract illegally; Employee received monthly pension and disability allowance;
- Employees have paid UI for at least 12 months within the 24 months prior to the termination of the labor contract;
- For seasonal or fixed-term contracts of 3 to less than 12 months, have contributed to UI for at least 12 months within the 36 months before termination;
- Have applied for unemployment benefits at an employment service center established by the state management agency on employment within 03 months from the date of termination of the labor contract or working contract;
- Have not found a job after 10 days from the date of applying for UI, except for the following 06 cases: Performing military service or police service; Going to study for 12 months or more; Comply with the decision to apply the measure of sending to reformatories, compulsory education establishments, and compulsory detoxification establishments; Detained; serve a prison sentence; Settling abroad; go to work abroad under contract; Pass away.
Contribution period requirements
Accordingly, pursuant to Article 39 of the 2025 Law on Employment, which takes effect from 1 January 2026, the duration of unemployment benefits is stipulated as follows:
The duration of unemployment benefit entitlement shall be determined based on the period of contribution to unemployment insurance. An employee who has paid unemployment insurance contributions for from full 12 months up to full 36 months shall be entitled to 03 months of unemployment benefits. Thereafter, for each additional full 12 months of contribution, the employee shall be entitled to one additional month of unemployment benefits; however, the maximum duration of unemployment benefits shall not exceed 12 months.
Unemployment insurance benefits explained
Unemployment insurance provides financial support to employees who lose their jobs involuntarily, helping them cover living expenses while they search for new employment opportunities.
Monthly unemployment allowance
The monthly unemployment allowance is the core benefit under the unemployment insurance regime, helping employees cover basic living expenses while they are unemployed.
Under the Law on Employment 2025, eligible employees are entitled to a monthly unemployment allowance if they meet all legal conditions regarding contract termination and contribution period.
Benefit calculation formula
Pursuant to Clause 1, Article 39 of the Law on Employment 2025, the monthly unemployment allowance is calculated as follows:
| Monthly unemployment allowance = 60% × Average monthly salary |
Note:
- Average Monthly Salary: Calculated based on UI contributions for the last 6 months before the termination of the labor or working contract.
- The maximum monthly unemployment allowance must not exceed 5 times the regional monthly minimum wage announced by the Government and applied in the last month of unemployment insurance contribution.
Example of benefit calculation
Assume an employee has an average monthly salary of 12,000,000 VND used as the basis for unemployment insurance contributions in the last 6 months before losing their job.
| Monthly unemployment allowance = 60% × 12,000,000 = 7,200,000 VND per month |
This allowance is paid monthly throughout the benefit duration as prescribed by law.
Benefit duration based on contribution time
According to Article 39 of the Law on Employment 2025, the duration of unemployment benefits depends on the employee’s contribution period:
- 12–36 months of contributions: 3 months of benefits
- Each additional 12 months of contributions: +1 month of benefits
- Maximum benefit duration: 12 months
- Unemployment benefits are payable from the 11th working day after the complete application is submitted.
This ensures fair support based on contribution history while encouraging timely re-employment.
Health insurance for unemployed workers
The Law on Employment 2025 also improves health insurance rights for the unemployed:
- Workers receiving unemployment benefits are entitled to health insurance coverage under the health insurance law.
- The social insurance agency pays health insurance premiums from the Unemployment Insurance Fund on behalf of the unemployed worker, including in cases of temporary suspension of unemployment benefits.
Health insurance for unemployed workers is a critical component of Vietnam’s social security system, helping protect employees’ health and reduce financial risks while they transition between jobs.
How to apply for unemployment insurance in vietnam
Employees who lose their jobs and meet the legal conditions can apply for unemployment insurance benefits by following the steps below.
Required documents for unemployment insurance claim
Within 03 months from the date of termination of the labor contract, employees must contact the local Employment Service Center to register for unemployment benefits as prescribed. The application dossier includes:
- Form No. 03 issued together with Circular No. 15/2023/TT-BLĐTBXH for requesting unemployment benefits.
- In case the employee does not wish to receive unemployment benefits, submit Form No. 08 issued together with Circular No. 15/2023/TT-BLĐTBXH.
- Decision on termination of the labor contract.
- Social Insurance Book that has been properly finalized.
Additionally, employees need to bring one of the following personal identification documents (for presentation and verification, if required): Citizen ID card / ID card / electronic ID card, etc.
Application deadline and submission timeline
According to the regulations on unemployment benefit entitlement for employees (Clause 6, Article 18, Decree 28/2015/ND-CP):
- Employees must apply for unemployment benefits within 3 months from the labor contract termination date.
- If benefits are not claimed within 3 months and no written notice is submitted, the employee is considered as having no request for benefits for that period.
- The unemployment insurance contribution period is retained and accumulated for future unemployment benefit eligibility.
Where to submit the claim
Employees can submit their unemployment benefit applications through the following methods:
- In person at the Employment Service Center (ESC): Employees may submit their application at any ESC where they wish to receive unemployment benefits; it is not required to submit at the locality where they previously worked.
- By post: Applications can be sent via postal service to the ESC at the official address for receiving unemployment benefit applications.
- Online via the National Public Service Portal: Employees can register and submit their unemployment benefit applications online through the National Public Service Portal, saving time and travel.
Depending on local regulations, employees may choose in-person, postal, or online submission.
Step-by-step unemployment insurance claim process
Understanding the unemployment insurance claim process helps employees prepare the required documents, follow the correct timeline, and receive benefits without delays.
Submission and review process
Within 03 months from the termination date of the labor contract or working contract, unemployed workers who have not yet found a new job and wish to receive unemployment insurance benefits must submit one complete application dossier to the local Employment Service Center (ESC) where they want to receive the allowance (not necessarily where they previously worked).
After the application is submitted, the Employment Service Center reviews the documents and monitors the claimant’s employment status during the statutory processing period.
Approval timeline and payment method
- Within 15 working days from the application submission date, if the employee has not found a job, the Employment Service Center confirms eligibility for unemployment benefits.
- Within 20 working days, the Employment Service Center issues the decision approving unemployment benefits and returns the social insurance book to the employee.
- If the employee is not eligible, a written notice stating the reason must be issued.
- The unemployment benefit entitlement start date is the 16th day from the application submission date.
- For subsequent months, the Social Insurance Agency pays benefits within 12 days from each monthly entitlement date, unless the benefit is suspended or terminated.
Monthly reporting obligations
According to Clause 1, Article 19 of Decree No. 28/2015/NĐ-CP, employees receiving unemployment benefits are required to report their job-search status on a monthly basis at the Employment Service Center, following the appointment schedule stated in the benefit decision.
If the employee fails to submit the monthly job-search report, the unemployment benefit for that month will be suspended. In cases where the reporting obligation is not fulfilled within the prescribed time limit, the Employment Service Center will notify both the Social Insurance Agency and the employee of the termination of unemployment benefit entitlement.
Common mistakes when claiming unemployment insurance
Many employees lose their unemployment insurance benefits due to avoidable mistakes during the claim process. Understanding these common errors helps ensure timely approval and uninterrupted benefit payments.
Missing deadlines
One of the most frequent mistakes is missing statutory deadlines when applying for unemployment insurance. Employees must submit their application within three months from the date of labor contract termination and comply with monthly job-search reporting schedules. Failure to meet these deadlines may result in claim rejection, delayed payments, or suspension of benefits, even if the employee is otherwise eligible.
Incorrect documentation
Submitting incomplete, inaccurate, or inconsistent documents is another common issue. Errors such as missing termination decisions, incorrect personal information, or incomplete social insurance records can delay the review process or lead to rejection. Employees should carefully verify all documents before submission to ensure they meet the required legal and administrative standards.
Failure to report employment changes
Employees receiving unemployment benefits are required to promptly report any changes in employment status, including starting a new job, signing a labor contract, or receiving income. Failure to report these changes may result in suspension, termination, or recovery of paid benefits, and in some cases, administrative penalties may apply.
Unemployment insurance vs one-time social insurance withdrawal
Unemployment insurance and a one-time social insurance withdrawal are two different social security benefits that apply in distinct situations.
Key differences explained clearly
The table below highlights the key legal and practical differences between unemployment insurance and a one-time social insurance claim under Vietnam’s regulations:
| Criteria | Unemployment insurance | One-time social insurance withdrawal |
| Legal basis | Law on Employment | Law on Social Insurance |
| Nature of benefit | Monthly allowance | Lump-sum payment |
| Payment duration | Based on contribution period | Paid once only |
| Health insurance coverage | Included during benefit period | Not included |
| Impact on future benefits | Preserves social insurance participation | Terminates social insurance rights |
| Common use case | Temporary job loss | Permanent exit from social insurance system |
Unemployment insurance focuses on income support and re-employment, while a lump-sum social insurance claim allows employees to withdraw their accumulated contributions in a single payment.
When unemployment insurance is the better option
Employees who qualify for unemployment insurance should carefully consider this option before making a one-time social insurance withdrawal, as withdrawing social insurance early may reduce or eliminate future pension entitlements.
When a one-time social insurance claim applies
A one-time social insurance claim (also referred to as a one-time social insurance withdrawal) applies only when employees meet specific legal conditions, such as no longer participating in compulsory social insurance and satisfying the statutory waiting period, or permanently leaving Vietnam.
While a lump-sum social insurance claim provides immediate financial relief, it permanently ends participation in the social insurance system and may affect long-term benefits, including pensions and healthcare coverage in old age.
Foreign employee leaving Vietnam? Unemployment insurance is not the only payout: claim your one-time Social Insurance before you fly Two months of average insured salary for every year contributed since 2014, paid as a lump sum once your labour contract ends. terra (I-GLOCAL Group, 100+ completed claims) checks your eligibility, closes the book with your former employer and files the claim, usually within 4 to 6 weeks. Fees: VND 10 million at signing plus 15% of the amount received, charged only after payout, before VAT.
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Frequently asked questions about unemployment insurance
Below are answers to the most frequently asked questions about unemployment insurance, helping employees understand eligibility, benefits, and the claim process.
What is unemployment insurance and how does it work?
Unemployment insurance is a compulsory social security scheme that provides temporary income support, job placement assistance, and health insurance coverage to employees who lose their jobs involuntarily and meet statutory conditions. Eligible employees receive monthly benefits while actively seeking new employment and complying with reporting obligations.
Is unemployment insurance mandatory in Vietnam?
Yes. Unemployment insurance is mandatory in Vietnam for both employees and employers who meet the conditions prescribed by law.
According to the Law on Employment (2013, as amended by the Law on Employment 2025), employees working under labor or working contracts of one month or more and employers who hire such employees are required to participate in unemployment insurance. Contributions are compulsory and form part of Vietnam’s social insurance system to ensure income support, job placement, vocational training, and health insurance coverage for workers when they become unemployed.
Is unemployment insurance mandatory in Vietnam?
Yes. Unemployment insurance is mandatory in Vietnam for both employees and employers who meet the conditions prescribed by law.
According to the Law on Employment (2013, as amended by the Law on Employment 2025), employees working under labor or working contracts of one month or more and employers who hire such employees are required to participate in unemployment insurance. Contributions are compulsory and form part of Vietnam’s social insurance system to ensure income support, job placement, vocational training, and health insurance coverage for workers when they become unemployed.
Can I receive unemployment insurance if I resign voluntarily?
No. If you voluntarily quit your job (unlawful unilateral termination of the labor contract), you will not be eligible for unemployment benefits, as this case is excluded under the Employment Law. However, your unemployment insurance contribution period may be retained for future benefit entitlement (if you meet the conditions).
How long do I need to contribute to qualify for unemployment benefits?
Employees must have paid unemployment insurance for at least 12 months within the statutory reference period before job termination.
How long can I receive unemployment insurance benefits?
In Vietnam, you can receive unemployment insurance for 3 to a maximum of 12 months, depending on your total contribution period, with 3 months for 12-36 months of contributions, plus one extra month for each additional 12 months, capped at 12 months.
Does unemployment insurance include health insurance coverage?
Yes, unemployment insurance (UI) includes health insurance (HI) for employees during the benefit period. The Social Insurance Agency (SIA) pays the HI premiums from the UI fund, so employees do not need to contribute. The health insurance card is valid immediately once the unemployment benefit decision takes effect, ensuring access to medical care.
How long does it take to receive unemployment insurance payments?
In Vietnam, unemployment benefits are generally paid from the 11th working day after the employee submits a complete application and it is verified by the Social Insurance Agency.
Can foreign employees receive unemployment insurance in Vietnam?
No, foreign employees in Vietnam are not eligible for unemployment insurance, as it’s reserved for Vietnamese citizens under the 2013 Law on Employment and related decrees. However, they are required to participate in compulsory social insurance (covering sickness, maternity, work injury, retirement) and health insurance, provided they have a work permit/license and a labor contract of at least one year.
Can I claim unemployment insurance and withdraw social insurance at the same time?
Yes, in Vietnam, you generally can claim unemployment insurance (UI) and withdraw lump-sum social insurance (SI) separately, as they are distinct funds, but you can’t get a monthly pension and the lump sum; however, withdrawing SI once impacts future pension eligibility, so it’s a trade-off to consider carefully before deciding on a one-time withdrawal versus waiting for retirement benefits. Claiming UI doesn’t stop you from withdrawing SI if eligible, but withdrawing SI means you’ve cashed out your retirement savings, and you won’t get a pension later, even if you keep paying into unemployment.
What happens if I miss the unemployment insurance claim deadline?
If you miss the 3-month application deadline, you won’t receive benefits for that period, but your previous contributions will be retained for future entitlement.
Claim your social insurance easily from anywhere with terra
If you are a foreign employee who has worked in Vietnam and want to claim your one-time social insurance (SI), terra provides a fast, safe, and fully legal solution:
- Clear and compliant procedures: All documents are prepared and submitted according to Vietnamese regulations, minimizing errors and legal risks.
- Bilingual support in English and Japanese: Every step is explained clearly, removing language barriers when dealing with the Social Insurance authority.
- Continuous progress tracking: Clients are updated on the status of their application, submission timeline, and SI payout, ensuring full transparency.
- Experienced specialists handling everything: terra’s team manages your application from A–Z, resolving any issues efficiently and providing full guidance for peace of mind.
- No need to be present in Vietnam: The entire process can be completed remotely with proper authorization, saving you time and travel costs.
With terra, you can claim your social insurance quickly while staying legally compliant, stress-free, and fully informed. Contact us today for detailed consultation and full support.
Conclusion
Unemployment insurance in Vietnam provides essential income support, health insurance, and re-employment assistance for eligible employees who lose their jobs. Understanding the rules on eligibility, benefits, and deadlines helps workers protect their rights and make informed decisions about unemployment insurance or social insurance withdrawal.
