The 2025 Law on Employment: Key Changes to the Unemployment Insurance Scheme

13/08/2025 04:04 PM


The 2025 Law on Employment, passed by the National Assembly on June 16th, 2025, will officially take effect on January 1st, 2026, and introduce several significant changes to the Unemployment Insurance (UI) policy.

Compared to the 2013 Law on Employment, the new law clarifies and broadens UI benefits. The updated scheme includes:

- Job counseling and placement services.

- Training support to upskill workers.

- Monthly unemployment allowances.

- Support for employers to train or retrain employees to retain jobs.

A notable addition is the provision allowing financial support for employers to retain workers during natural disasters, fires, pandemics, enemy sabotage, or mandatory business relocations under competent authority decisions.

Additionally, the Law introduces a flexible mechanism allowing the Government to reduce UI contribution rates or provide monetary and in-kind support during crises, economic recession, natural disasters, or epidemics, based on actual conditions and UI Fund surpluses.

The 2025 Law on Employment retains the formula for calculating monthly unemployment allowance at 60% of the average monthly salary on which UI contributions were based during the last 6 months. The allowance shall not exceed five times the regional minimum wage level applicable in the final month of UI contribution.

The time for UI allowance receipt is on the 11th working day after the date of complete application submission.

The 2025 Law on Employment places greater emphasis on the obligations of employees during the period of receiving UI benefits. According to Clause 1, Article 40, beneficiaries are required to report their monthly job search status to the public employment service center where they receive benefits.

VSS