[UPDATED 1/1/2026] NEW CHANGES TO UNEMPLOYMENT BENEFITS

From 01 January 2026, the new regulations on unemployment insurance under the Employment Law 2025 and Decree 374/2025/NĐ-CP will officially take effect, introducing a number of important adjustments to the contribution–benefit mechanism and eligibility framework.
In addition to the key updates on the unemployment benefit level and cases of termination or disqualification, the new regulations also further clarify:

  • Contribution rates and the State’s support mechanism for the Unemployment Insurance Fund;
  • Cases considered as active participation in unemployment insurance;
  • The shortening of the waiting period before benefits commence; and
  • The expansion of vocational training support for unemployed workers.

Below is a summary of the key points for your reference:

1. Unemployment Benefit Level

  • The monthly unemployment benefit is determined as follows: 60% × the average monthly salary used for unemployment insurance contributions during the six months immediately prior to unemployment.
  • If there is any interruption in contributions during the last six months, the average will be calculated based on the six most recent months with actual contributions prior to termination.
  • The benefit is capped at no more than five (5) times the applicable regional minimum wage at the time of termination of the labor contract. This applies to categories of employees, whether they are on a State-defined or an employer-decided salary system

2. Cases of Termination or Disqualification from Unemployment Benefits

From 01 January 2026, employees will not be entitled to, or their entitlement will be terminated in the following cases:

  • Termination of the labor contract when the employee is already eligible for a pension (even if not yet receiving pension payments).
  • Unlawful unilateral termination of the labor contract by the employee.
  • The employee requests the termination of benefit entitlement (voluntary cessation).
  • The beneficiary passes away, or other termination cases as prescribed by law.

3. Other noteworthy updates under Decree 374/2025/NĐ-CP

In addition to benefit levels and termination cases, the new regulations also introduce the following notable points:

3.1. Contribution rates and State support for the Unemployment Insurance Fund

  • Employees continue to contribute 1% of their monthly salary as the basis for unemployment insurance.
  • Employers continue to contribute 1% of the monthly payroll of employees participating in unemployment insurance.
  • The State provides support to the Unemployment Insurance Fund from the central budget to ensure financial balance and long-term policy stability.

3.2. Cases considered as active participation in unemployment insurance

The Decree clarifies and expands the concept of “active participation”, including certain cases where employees are not directly working but are still considered as participating, such as:

  • Periods of leave for sickness or maternity in accordance with social insurance regulations;
  • Periods of lawful suspension of the labor contract;
  • Other interruption periods are recognized and confirmed by the social insurance authority.

3.3. Waiting period before benefit commencement

  • The waiting period is shortened from 15 working days to 10 working days from the date on which the employee submits a complete and valid application dossier to the Employment Service Center.
  • Accordingly, benefits will commence from the 11th working day after submission of a complete dossier.

3.4. Expansion of vocational training support

  • The scope of vocational training support is expanded beyond only those currently receiving unemployment benefits.
  • Employees who have contributed to unemployment insurance for at least nine (09) months within the 36 months prior to unemployment may be considered eligible for vocational training support, even if they are not receiving cash benefits.

These changes clarify the scope and purpose of the unemployment insurance scheme as a mechanism to support employees during their transition between jobs and confirm that it does not apply to cases where employees have entered the pension stage or have unlawfully terminated their employment.
Employers and employees are encouraged to proactively review employment status, termination timing, and eligibility conditions to ensure proper application and mitigate compliance risks from 2026 onwards.
If you require any further assistance or would like to discuss the implications in more detail, please feel free to contact our professional team.

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