Workers Can Receive Unemployment Benefits of Up to Nearly 320 Million VND per Year
Starting from January 1, 2026, the 2025 Employment Law will officially take effect, bringing significant changes to unemployment insurance policies. According to the new regulations, the monthly unemployment benefit for workers will be 60% of the average monthly salary used for unemployment insurance (UI) contributions over the six consecutive months prior to unemployment. However, this amount is capped at five times the regional minimum wage announced by the government and applied in the last month of UI contributions.
At the same time, Decree No. 293/2025/NĐ-CP issued by the government adjusts the regional minimum wage starting from January 1, 2026, as follows:
Based on this, the maximum unemployment benefit for workers is also recalculated. Accordingly, workers in Region I will receive a maximum of 26.55 million VND per month; Region II is 23.65 million VND per month; Region III is 20.7 million VND per month; and Region IV is 18.5 million VND per month. This is considered a significant increase compared to the previous period, reflecting the government’s commitment to ensuring the livelihoods of workers who lose their jobs.
According to the 2025 Employment Law, workers can receive up to 12 months of unemployment benefits, corresponding to 144 months of insurance contributions. If eligible for the maximum benefit, workers in Region I can receive 318.6 million VND per year, equivalent to nearly 320 million VND. Other regions also have corresponding benefit levels:
Thus, the increase in the regional minimum wage not only improves the income of currently employed workers but also directly impacts their unemployment insurance benefits, especially as the labor market gradually recovers and fluctuates post-pandemic.
Who Will Receive a Doubled Unemployment Benefit Increase Starting in 2026?
In essence, the term “doubled increase” here refers to the fact that previously, workers under the state-regulated salary system (public sector) had a lower benefit cap, while those under employer-determined systems (private sector) had a higher cap.
Specifically, currently, public sector workers have a maximum benefit of approximately 11.7 million VND per month, while private sector workers, depending on the region, receive between 17.25 and 24.8 million VND per month.
However, starting from January 1, 2026, the public sector will share the new cap, meaning public sector workers will see their benefits “increase” to levels equivalent to those currently in the private sector. Thus, the beneficiaries include:
Workers under the state-regulated salary system.
Workers contributing to unemployment insurance under employer-determined salary systems. Both groups will have their unemployment benefit caps raised based on the new regional minimum wage.
Who Qualifies for a Double Increase in Unemployment Benefits Starting 2026?
As of January 1, 2026, both public and private sector employees will share the same maximum unemployment benefit allowance.
Unemployed Workers to Receive Allowance Five Times the Minimum Wage
Under the new regulations, the maximum unemployment benefit for workers has been increased to five times the regional minimum wage, replacing the current calculation based on the base salary.
Interior Ministry Cites Reasons for 7.2% Regional Minimum Wage Increase Starting 2026
The Ministry of Home Affairs has proposed a 7.2% average increase in regional minimum wages starting from 2026, amounting to an additional VND 250,000-350,000 per month for workers. This adjustment aims to boost employees’ income while keeping production costs for businesses minimally impacted.
Unemployment Benefit Claims Plummet in Hanoi
In August, the number of approved unemployment benefit claims in Hanoi decreased by 41% compared to the previous month, indicating positive signs in the labor market.
The Power of Deductions: Why a Flat Rate and Unified System Benefits All
“There has been a debate on whether the personal income tax exemption amount should be based on regional minimum wages. However, this proposal has not gained support from the Ministry of Finance. The Ministry argues that the legal exemption amount must be uniform across the country, regardless of an individual’s income level, consumption needs, or place of residence.”
