The Ministry of Home Affairs has proposed new unemployment insurance (UI) contribution rates.
Employees would contribute 0.9% of their monthly salary, while employers would pay 0.9% of the total monthly salary fund of their workers participating in UI. The State would provide support of up to 0.9% of the salary fund, financed by the central budget.
The 2013 Law on Employment, which remains in effect until the end of 2025, sets unemployment insurance (UI) contributions at 1% of an employee’s monthly salary, with employers also contributing 1% of their salary fund.
For employees covered by the central budget, the State supports up to 1% of the salary fund for UI contributions.
Under the new Employment Law 2025, this provision has been revised.
From 1 January 2026, the contribution rate will be capped at a maximum of 1% of monthly salary to provide greater flexibility in response to natural disasters, epidemics, economic crises, recessions, or when the UI fund has a large surplus.
The Ministry of Home Affairs has proposed setting the rate at 0.9%.
According to the drafting committee, this level was chosen after calculating revenue and expenditure to ensure the solvency and safety of the UI fund.
By the end of June 2025, Vietnam had 16.42m people enrolled in UI, up 9.7% year-on-year.
In 2024, UI collections from employees and employers totalled more than VND25.6tn ($951m), with expenditures at VND23tn, leaving the fund with a surplus of VND63.4tn.
In 2025, collections are projected to exceed VND25.7tn, with spending of VND27.2tn, resulting in a forecast surplus of VND67.4tn.