Latest Unemployment Insurance Calculation Method

18/10/2023 02:46 AM

Have you ever wondered, "How is unemployment insurance calculated?" If you're seeking clarity on the intricacies of calculating unemployment insurance benefits, you've come to the right place.

In this comprehensive guide provided by Aniday, we will not only demystify the calculation process but also explore the fundamental aspects of unemployment insurance, including its definition, formula, benefit period, and salary determination.

What Is Unemployment Insurance?

Before delving into how unemployment insurance is calculated, it's essential to have a clear understanding of what unemployment insurance is. Unemployment insurance is a form of social insurance designed to provide workers with a stable income in the event of job loss through no fault of their own. The regulations governing unemployment insurance are outlined in the Social Insurance Law and its accompanying documents.

How to Calculate Unemployment Insurance

Explanation of the formula and benefit period when calculating unemployment insurance. Source: LawNet.vn

While researching how unemployment insurance is calculated, it's also important to acquire a basic understanding of the calculation process.

Unemployment Insurance Calculation Formula

According to regulations, the monthly unemployment insurance premium is equal to 60% of the total average monthly income from the most recent six consecutive months before job loss, multiplied by an allowance coefficient determined by the number of dependents.

The allowance coefficient based on the number of dependents is applied as follows:

No dependents: 1.0.
One dependent: 1.1.
Two dependents: 1.2.
Three or more dependents: 1.3.

Time to Calculate Unemployment Insurance Benefits

The period for calculating unemployment insurance benefits is determined based on the number of months of social insurance payments made in the most recent 24 consecutive months before job loss. Specifically:

If the employee has paid for 12 to fewer than 36 months: 3 months.
If the employee has paid for 36 to fewer than 72 months: 6 months.
If the employee has paid for 72 months or more: 9 months.

Determination of Unemployment Insurance Salary

Unemployment insurance salary. Source: Vietnamnet

Understanding how to determine unemployment insurance salary is crucial when learning about how unemployment insurance is calculated because it serves as the basis for determining unemployment insurance benefits. The salary is determined according to the following rules:

For employees working under labor contracts: It includes the main salary and allowances and benefits of a salary nature according to the labor contract.
For employees who do not have a labor contract: It includes the main salary and allowances and benefits of a salary nature as per the decision of the employing agency or organization.
For freelance workers: It is the salary agreed upon by the employee and the social insurance management agency, but it must not be lower than the general minimum wage.

How to Calculate Unemployment Insurance in 2023

In this section, we will explore how unemployment insurance is calculated, specifically the method for calculating regular unemployment insurance.

How to calculate unemployment insurance in the usual way

Total average monthly income from the last six consecutive months before job loss.
The number of dependents of the employee.
The number of months of social insurance payments in the last 24 consecutive months before job loss.

You can then apply the formula and allowance coefficient mentioned above to determine the level and duration of unemployment insurance benefits.

For example, if Employee A has an average total monthly income of 10 million VND for the most recent six consecutive months before job loss, has two dependents, and has paid social insurance for 48 months in the last 24 consecutive months before job loss, then:

The monthly unemployment insurance premium is: 10,000,000 x 60% x 1.2 = 7,200,000 VND.
The unemployment insurance period is: 6 months.

How to Calculate Unemployment Insurance Online

If calculating unemployment insurance manually makes you feel uncertain, you can use online unemployment insurance calculators. Simply enter the required information in the provided fields and click the "Calculate" button to obtain the results. Some websites that offer online unemployment insurance calculators include:

Conclusion

Understanding the intricacies of unemployment insurance is crucial for individuals navigating the uncertainties of the job market. This article has provided valuable insights into not only "What is unemployment insurance?" but also "How is unemployment insurance calculated?" We've explored the formula, allowance coefficients, and influencing factors that determine the level and duration of unemployment insurance benefits.

Whether you're an employee seeking financial security or an employer looking to support your workforce, this knowledge is essential. If you've found this information valuable, you're well-equipped to navigate the complexities of unemployment insurance confidently. Thank you for reading and exploring the world of unemployment insurance with Aniday.