Subjects required to participate in unemployment insurance. Participating in insurance is one of the rights of employees. However, is this benefit different between foreign workers and Vietnamese workers, such as unemployment insurance? Let us learn about this topic with LSX law firm as follow:
Subjects required to participate in unemployment insurance
According to the provisions of Article 43 of the Employment Law 2013, employees must participate in unemployment insurance when working under:
- Firstly, Labor contract or work contract with the indefinite term;
- Secondly, Labor contract or fixed-term work contract;
- Thirdly, seasonal or job-specific labor contracts with a term of from full 3 months to less than 12 months.
- If an employee enters into and is performing many labor contracts, the employee and the employer of the first signed labor contract are responsible for participating in unemployment insurance.
- Also eployees of the above subjects enjoying pensions; or helping domestic workers are not required to participate in unemployment insurance.
Regarding employees’ participation in unemployment insurance, Clause 1, Article 3 of the Employment Law 2013 explains:
Employees are Vietnamese citizens; aged complete 15 years or older, can work, and need to work.
Based on this provision, you can see that foreign workers are not covered by the Employment Law 2013. Therefore, foreign workers don’t need to participate in unemployment insurance.
2 types of foreign labor insurance
According to the current law, foreign workers working in Vietnam will participate in social insurance and health insurance. Specifically:
For social insurance
According to Clause 1, Article 5 of Decree 143/2018/ND-CP; employees entitled to compulsory social insurance regimes: sickness, maternity, occupational accident, occupational disease, retirement, and death.
Employees who are foreign citizens working in Vietnam are eligible to participate in compulsory social insurance when meeting 02 conditions:
– Having a work permit or practicing certificate or a practicing license issued by a competent Vietnamese authority;
– Having an indefinite-term labor contract or a definite-term labor contract of total 01 years or more with an employer in Vietnam.
For health insurance
Clause 6, Article 1 of the Law on Health Insurance, amended and supplemented in 2014, lists the subjects participate in health insurance that are jointly paid by the employee and the employer as follows:
Employees working under indefinite-term labor contracts or labor contracts with a term of 3 months or more; The employee is the business manager who receives a salary…
Meanwhile, Clause 2, Article 1 of this Law states:
This law applies to domestic and foreign organizations and individuals in Vietnam related to health insurance.
Therefore, foreign workers are also; entitled to health insurance like domestic workers. However, you should note that these workers must work under labor contracts with a term of 3 months or more.
Finally, hope this article about Subjects required to participate in unemployment insurance is helpful for you!
Unemployment insurance is the amount of money; paid to employees when they lose their jobs; supporting them to learn jobs, maintain jobs, and find jobs on the basis of contributions to the Unemployment Insurance Fund.
Accordingly, the employee’s monthly unemployment allowance is; determined by the average salary of the 6 consecutive months with which unemployment insurance premiums have been paid, multiplied by 60%.
Monthly unemployment allowance = Average salary of the 6 consecutive months with which unemployment insurance premiums are paid x 60%