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New policy to improve unemployment benefits
The unemployed should receive better benefits next year, thanks to a new policy set to come into effect in 2009.
On Dec. 15, the Government issued a decree guiding the implementation of this policy, which provides a legal basis to encourage labourers to take part in un-employment insurance.
The insurance should not only support the unemployed, but also contribute to the circulation of labour in the market, said Pham Do Nhat Tan, head of the Social Insurance Department under the Ministry of Labour, Invalids and Social Affairs.
Under the new insurance, only Vietnamese with a job contract of a least 12-36 months who have paid at least 12 months into the insurance will be eligible. They must also prove that they have been unable to find work 15 days after registering for unemployment at social insurance agencies, said Tan.
The new conditions have caused some concern.
“I am a little worried what will happen for us, the employees, if out bosses insist on offering short-time contracts under 12 months to avoid their responsibility,” said Le Thanh Cong, a worker in Dong Anh Industrial Zone, Hanoi.
Earlier this month, the ministry sent a message to chairmen of provinces and municipal people’s committees asking them to disseminate the insurance policy to enterprises and agencies and supervise the implementation, said Tan.
The insurance will pay the unemployed 60 percent of their previous salary.
The period applicants will be eligible to receive the unemployment pay will depend on the period in which they paid into the insurance.
On the 16th day after being laid off, the recipient will be entitled to three months of unemployment benefits if they paid into the insurance for 12-36 months, and six months of benefits if they paid into it for 36-72 months. Recipients will be entitled for a year of unemployment if they have paid into the insurance for 144 months.
In addition, the new policy provides for vocational training, consultancy and help in finding new jobs as well as health insurance.
Funding for the insurance will be provided by the State, enterprises and labourers. Employees will contribute 1 percent of their monthly salary, employers 1 percent of their monthly salary fund for the unemployment insurance, and the State 1 percent of the employer’s monthly salary fund.
vna
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