News
On June 16, 2025, at the 9th Session of the 15th National Assembly, the Law on Employment 2025 was officially adopted. The Law consists of 8 chapters and 55 articles and will take effect from January 1, 2026.
This Law marks a major reform in employment policy and unemployment insurance (UI), aligning with the realities of a more flexible labor market and diversified forms of employment.
The Law on Employment 2025 institutionalizes the Party’s orientation set out in Resolution No. 28-NQ/TW and ensures consistency with the Law on Social Insurance 2024, transforming unemployment insurance into a labor market governance tool, rather than merely a benefit scheme for job loss.
Key policy orientations include:
Expanding the scope of unemployment insurance coverage
Introducing flexible contribution rates
Simplifying administrative procedures
Enhancing benefits for employees and employers
Linking unemployment insurance with training, job transition, and unemployment prevention
Pursuant to Clause 1, Article 31 of the Law on Employment 2025, from January 1, 2026, the following subjects are required to participate in unemployment insurance:
Employees working under fixed-term labor contracts of one month or longer
Part-time employees whose monthly wages are equal to or higher than the minimum salary used as the basis for compulsory social insurance contributions
Individuals working under agreements with different titles but having the substance of an employment relationship, including paid work subject to management, administration, and supervision
These provisions help extend protection to short-term, part-time, and flexible workers, who face higher unemployment risks but were previously insufficiently covered.
Enterprise managers, controllers, and capital representatives
Members of the Board of Directors, Directors, and General Directors
Members of the Supervisory Board, controllers of cooperatives and cooperative unions receiving salaries
Including this group ensures fairness and accurately reflects the nature of salaried employment relationships.
Under the Law on Employment 2025:
The maximum unemployment insurance contribution rate is capped at 1% of monthly wages
Detailed regulations are delegated to the Government, replacing the former rigid statutory rate
Key new points include:
Allowing reductions in contribution rates or financial and other forms of support in cases of:
Economic crises or recessions
Natural disasters, fires, or dangerous epidemics
This enhances the flexibility in managing the Unemployment Insurance Fund, enabling quicker policy responses to real-world conditions.
Expanding support from “vocational training” to training and upgrading occupational skills
Adding meal allowances during training periods, enabling unemployed workers to better access retraining and job transition opportunities
Reducing the waiting period for benefits from 15 days to 10 working days, allowing unemployed workers to access support sooner and ease financial pressure
Increasing the maximum benefit level to five times the regional minimum wage per month, instead of linking it to the base salary as before. This better reflects actual income levels in the enterprise sector and helps ensure workers’ livelihoods while seeking new employment
Excluding individuals who are eligible for pension benefits from receiving unemployment benefits
Expanding eligibility for training support to maintain employment
Removing restrictive conditions such as “insufficient financial resources” or “economic downturn”
Increasing enterprises’ access to support, thereby helping reduce layoffs
The Law on Employment 2025:
Expands the social safety net for informal and part-time workers
Encourages self-learning, self-training, and recognition of occupational skills
Contributes to labor market stability and improves workforce quality
Reduces loopholes and avoidance of insurance obligations
GIVLAW provides legal support in:
Advising on the Law on Employment 2025 and unemployment insurance from 2026
Reviewing unemployment insurance participation obligations for enterprises
Advising on contribution obligations and benefit entitlements
Assisting in resolving disputes and complaints related to unemployment insurance
Contact GIVLAW for compliant, timely, and effective legal solutions.
