The 2013 Labor Law, which is still in force, stipulates the unemployment insurance (UI) contribution rates. Accordingly, employees contribute 1% of their monthly salary, while employers contribute 1% of the total monthly salary of their employees participating in UI. For employees participating in UI supported by the central budget, the state provides a maximum subsidy of 1% of the monthly salary contributed to UI.
However, the 2025 Labor Law (effective from January 1, 2026) has made adjustments to these rates. The UI contribution rates will now be flexible and can be up to 1% of the monthly salary.
The Ministry of Home Affairs proposes a UI contribution rate of 0.9% of the employee’s monthly salary from January 1, 2026.
Elaborating on this, the Ministry of Home Affairs recently proposed in a draft decree detailing the implementation of some articles of the Labor Law on UI that from January 1, 2026, the UI contribution rate for employees will be 0.9% of their monthly salary. Employers will contribute 0.9% of the total monthly salary of their employees participating in UI, and the state will provide a maximum subsidy of 0.9% of the monthly salary contributed to UI for employees participating in UI supported by the central budget.
According to the Ministry of Home Affairs, as of June 2025, there were 16.42 million people participating in UI in Vietnam (an increase of 9.7% compared to the same period in 2024), and the UI fund balance at the end of 2024 was VND 63,400 billion. In proposing and setting the 0.9% rate, the drafting committee considered revenue and expenditure to ensure the UI fund’s ability to pay out benefits and maintain solvency without requiring state budget support for the next five years.
Specifically, as of the end of 2024, the total UI revenue from employees and employers was over VND 25,678 billion, and the estimated revenue for 2025 is over VND 25,735 billion. Therefore, if the contribution rate is reduced from 1% to 0.9%, the expected annual UI revenue will decrease to over VND 23,162 billion.
Additionally, there will be some increases in expenditure totaling more than VND 4,319 billion when the new Labor Law takes effect. These include increased costs for training and skill improvement programs to help employees retain their jobs, job counseling and referral services, vocational training support for employees, and support for employers’ UI contributions for employees with disabilities. There will also be additional management expenses due to the expansion of activities funded by the UI fund…
“While the annual UI fund revenue will be lower than the expenditure, with the projected UI fund balance of approximately VND 67,384 billion by the end of 2025, the UI fund will remain solvent over the next five years with a contribution rate of 0.9% each for employees and employers, without requiring state budget support,” affirmed the Ministry of Home Affairs.
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