“Preserving Unemployment Benefits: Maintaining a Steady 60% Wage Subsidy”

Balancing Unemployment Insurance Contributions and Payouts

On the morning of June 16th, with the majority of delegates in agreement, the National Assembly passed the amended Labor Law. Taking effect from January 1st, 2026, the amended Law maintains the unemployment benefit entitlement at 60% of the average monthly salary based on unemployment insurance contributions, as per current regulations.

Previously, in the report on the absorption, explanation, and editing of the draft amended Labor Law, the National Assembly’s Standing Committee shared that during discussions, some delegates proposed increasing the monthly benefit entitlement to a minimum of 65% and allowing the government to adjust it up to a maximum of 75% in cases of economic crises or large-scale epidemics.

On the other hand, some delegates suggested increasing the benefit to 70% but not exceeding five times the regional minimum wage, and for every six months of unemployment insurance contributions, an additional month of benefits should be given, with a maximum of 12 months.

However, upon review, the National Assembly’s Standing Committee found that the Unemployment Insurance Fund’s surplus in recent years was mainly accumulated during the pre-2020 period, supported by annual state budget allocations. During that time, the number of beneficiaries of these regimes was still small. But from 2020 onwards, the annual unemployment insurance contributions and payouts have been balanced.

Citing the experiences of countries with successful unemployment insurance or employment insurance policies, such as Canada, South Korea, Japan, and Thailand, the National Assembly’s Standing Committee stated that the international standard for unemployment benefits is no less than 45% of previous income or no less than 45% of the minimum wage.

According to the National Assembly’s Standing Committee, the 60% entitlement based on the average monthly salary of unemployment insurance contributions over three months is relatively in line with international practices and the current regulations governing benefits for unemployed workers.

This level of benefit ensures that unemployed workers can alleviate their difficulties and stabilize their lives while looking for new jobs, adhering to the contribution-benefit principle and taking into account the Unemployment Insurance Fund’s ability to balance contributions and payouts. Therefore, the National Assembly’s Standing Committee decided to maintain the entitlement as per the draft law.

Tightening Legal Responsibilities of Celebrities in Advertising

On the same morning, the National Assembly passed the Law amending and supplementing a number of articles of the Law on Advertising. Presenting the report on explanation and absorption, Chairman of the Culture and Education Committee Nguyen Dac Vinh said that the draft law has added regulations to enhance the responsibility of those who convey advertising products, especially celebrities and influencers.

Specifically, all entities involved in advertising activities must provide information when requested by competent state agencies, including those who convey advertising products.

Regarding the proposal to add the obligation of the person conveying the advertising product to be jointly liable for compensation for acts of false advertising, Mr. Vinh said that when advertising a product, there are many entities involved.

“Each entity has its own responsibilities and obligations. When there is a violation, depending on the nature and severity of the violation, there will be corresponding handling measures. Therefore, the National Assembly’s Standing Committee maintains the regulation as in the draft Law,” Mr. Vinh said.

Some delegates proposed that only those with expertise in the product should be allowed to advertise to ensure accuracy and prevent misunderstandings among consumers.

On this issue, Mr. Vinh said that in a market economy, the participation of celebrities in advertising is a common commercial activity, promoting consumption and innovation. Therefore, we should not restrict their involvement but instead strengthen their legal responsibilities through specific obligations stipulated in the law.

“Adding specific and clear provisions on the rights and obligations of those who convey advertising products is necessary to address the situation where some celebrities and influencers have engaged in false advertising, counterfeit goods, and knock-offs,” Mr. Vinh explained.