In Vietnam, when participating in the social insurance system, Vietnamese workers have the right to access unemployment insurance policies as well as the option to withdraw lump-sum social insurance. There is a common misconception among workers in Vietnam that withdrawing lump-sum social insurance benefits exempts them entirely from the social insurance system and other related policies.
When a worker contributes to social insurance monthly, the funds are allocated to three funds: the social insurance fund (including retirement and survivorship fund, the sickness and maternity fund, and the occupational accident and disease fund), the unemployment insurance fund, and the health insurance fund.
The funds allocated for lump-sum social insurance withdrawal come from the retirement and unemployment benefit fund, with a contribution rate of 14% from employers and 8% from employees. This contribution is specifically allocated to the retirement fund and is not connected to the unemployment insurance fund. The differentiation between these two regimes is clearly defined in the Social Insurance Law, Labor Law, and related regulations.
If eligible, workers can still claim unemployment insurance even after withdrawing from the retirement and survivorship fund.
Conditions for claiming unemployment insurance after lump-sum social insurance withdrawal
After withdrawing from the lump-sum social insurance regime, to be eligible for unemployment insurance, workers must meet the same criteria as in regular cases, including:
- Termination of the labor contract with the employer (supported by specific evidence such as a termination notice with a clear issuance date and valid reasons for termination).
- Having contributed to unemployment insurance for at least 12 months in the 24 months before the contract termination, with contributions from both the employee and the employer.
- Submitting a claim for unemployment benefits to the employment service center within three months from the date of contract termination.
- Not finding new employment within 15 days after submitting the claim to the employment service center.
If all four conditions are met, workers can receive unemployment benefits even after they have received lump-sum social insurance. Consequently, workers who have withdrawn from the lump-sum social insurance regime will need to return to the social insurance system, terminate their employment, obtain an unemployment insurance book, and complete the claim process within three months of termination.
The unemployment insurance benefits will be calculated based on the total contribution period for unemployment insurance that has not been utilized, including the period before the lump-sum social insurance withdrawal, as these are two separate funds that do not affect each other.
However, it’s essential to note that the process of claiming unemployment insurance after lump-sum social insurance withdrawal is often more complex compared to regular cases.