On 16 June 2025, the National Assembly promulgated the 2025 Employment Law, which takes effect from 1 January 2026.
- The Government has issued a number of decrees guiding the implementation of the Employment Law, including:
- Decree No. 374/2025/NĐ-CP dated 31 December 2025 on Unemployment Insurance
- Decree No. 352/2025/NĐ-CP dated 30 December 2025 on Employment Services
- Decree No. 338/2025/NĐ-CP dated 25 December 2025 on Policies to Support Job Creation
- Decree No. 318/2025/NĐ-CP dated 12 December 2025 on Labour Registration and the Labour Market Information System
Below are the key new provisions of the 2025 Employment Law and its implementing regulations compared to current regulations:
1. Expansion of Coverage for Unemployment Insurance Participants
Under the 2025 Employment Law, participants in unemployment insurance include:
Employees working under fixed-term labour contracts with a duration of from 01 month to under 03 months.
Part-time employees whose monthly wages are equal to or higher than the minimum wage used as the basis for compulsory social insurance contributions under the 2024 Social Insurance Law (currently equivalent to the statutory base salary).
Individuals working under agreements with different names, provided that the content reflects paid work and the management, administration, and supervision of one party.
Certain other wage-earning groups.
In addition, the Law authorizes the Standing Committee of the National Assembly to decide on unemployment insurance participation for other groups not specified in the 2025 Employment Law who have stable and regular employment and income, based on Government proposals and in line with socio-economic conditions in each period.
2. Retention of the Unemployment Benefit Rate of 60%
The 2025 Employment Law maintains that the monthly unemployment benefit equals 60% of the average monthly wage used for unemployment insurance contributions of the last six months prior to termination of the labour contract, employment contract, or cessation of work, capped at no more than five times the regional minimum monthly wage.
3. Clearly Defining the Responsibilities of the Employer for Unemployment Insurance Contributions
The 2025 Employment Law clearly stipulates that employers are responsible for fully paying unemployment insurance contributions. Acts of late payment or evasion of contributions are handled in accordance with the 2024 Social Insurance Law.
The Law also adds provisions requiring employers who fail to fully pay unemployment insurance contributions for employees prior to termination of labour or employment contracts to pay an amount equivalent to the unemployment insurance benefits to which the employees would have been entitled.
The maximum unemployment insurance contribution rate is set at 1%, with detailed guidance delegated to the Government instead of a fixed statutory rate, ensuring policy flexibility and greater regulatory responsiveness, particularly in cases of natural disasters, epidemics, economic crises, recessions, or surplus in the Unemployment Insurance Fund.
Additionally, the Law introduces a provision allowing a reduction in the employer’s unemployment insurance contribution obligation for employees with disabilities for up to 12 months from the date of new recruitment and employment.
4. Clarification of Unemployment Insurance Benefits and Expansion of Employee Entitlements
The 2025 Employment Law provides for four unemployment insurance schemes, similar to the 2013 Employment Law, but with clearer and expanded provisions:
The 2025 Employment Law provides for four unemployment insurance schemes, similar to the 2013 Employment Law, but with clearer and expanded provisions:
Training and Skills Development Support: Employee benefits are expanded beyond vocational and skills training to include meal allowances during training periods, helping unemployed workers reduce financial difficulties while upgrading skills.
Unemployment Allowance: Employees who terminate employment upon reaching eligibility for a pension are not entitled to unemployment benefits; the waiting period to qualify for unemployment benefits is reduced from 15 working days to 10 working days.
Certain conditions for supporting employers in training, retraining, and skills upgrading to maintain employment for employees participating in unemployment insurance are removed.
5. Retention of the Maximum Unemployment Benefit Duration of 12 Months
Under the 2025 Employment Law, the duration of unemployment benefits is calculated based on the number of months of unemployment insurance contributions:
For 12 to 36 months of contributions, employees are entitled to 3 months of unemployment benefits.
For each additional 12 months of contributions, employees are entitled to one additional month of benefits, with a maximum duration of 12 months.
This maximum benefit duration remains unchanged from existing regulations.
The above is a summary of the key new provisions of the 2025 Employment Law, effective from 1 January 2026, replacing the 2013 Employment Law. These new provisions will be incorporated into labour law training courses organized periodically by RBV for participating enterprises.