The draft of the revised Employment Law provided a proposal to amend, and supplement some regulations on the UI contribution level, details are as follows:
In the current Employment Law 2013, both workers and employers shall pay the same fixed unemployment insurance premiums equal to 1% of the monthly wage. Thus, this policy lacked flexibility in the adjustment of UI contribution level, especially in cases of natural disasters, epidemics, economic crises, and recessions when the unemployment fund is abundant.
The draft of the revised Employment Law proposed to amend, and supplement the UI contribution level as below:
- Workers shall pay unemployment insurance premiums equal to 1% at most of their monthly wage;
- Employers shall pay unemployment insurance premiums equal to 1% at most of the monthly wage fund of the workers currently participating in unemployment insurance;
- The State shall provide at most 1% of the monthly wage fund from the central budget as support for payment of unemployment insurance premiums of workers currently participating in unemployment insurance.
The monthly salary which is the basis for UI contribution is the monthly salary that is used as the basis for compulsory social insurance contributions in compliance with the Law on Social Insurance.
If the monthly salary paid for unemployment insurance exceeds 20 times the region-based minimum wage level announced by the Government, the monthly salary paid for UI shall be 20 times the region-based minimum wage level at the time of UI contribution.
