What is the maximum unemployment allowance from January 01, 2027?

1. What is the maximum unemployment allowance from January 01, 2027?

Under Clause 1, Article 39 of the 2025 Law on Employment, the monthly unemployment allowance level is equal to 60% of the average monthly salary used for payment of unemployment insurance premiums of the last 6 months before the date of termination of the labor contract or working contract or before the date of work cessation for which unemployment insurance premiums have been paid.

However, the maximum allowance level must not exceed 5 times the region-based monthly minimum salary level announced by the Government and applied in the last month of payment of unemployment insurance premiums.

Notably, from July 01, 2027, region-based monthly minimum wage levels are adjusted under Clause 1, Article 3 of Decree No. 399/2026/ND-CP, specifically as follows:

• Region I: VND 5.7 million/month;
• Region II: VND 5.08 million/month;
• Region III: VND 4.45 million/month;
• Region IV: VND 4.04 million/month.

Therefore, for employees whose last month of payment of unemployment insurance premiums falls on or after January 01, 2027, and to whom the above region-based minimum wage levels apply, the maximum unemployment allowance levels are determined as follows:
 

2. Conditions for being entitled to unemployment allowance

Article 38 of the 2025 Law on Employment provides that workers who currently pay unemployment insurance premiums will be entitled to unemployment allowance when fully satisfying the following conditions:

• Having their labor contracts or working contracts terminated, or having ceased working in accordance with law, except where workers unilaterally terminate labor contracts in contravention of law as specified by the Labor Code or retire when qualified for receiving pension.
• Having paid unemployment insurance premiums for full 12 months or more within 24 months before the date of termination of the labor contract or working contract or before the date of work cessation in accordance with law.

In case the worker works under a labor contract of a term of between full 1 month and under 12 months, he/she must have paid unemployment insurance premiums for full 12 months or more within 36 months before the date of termination of the labor contract.

• Having submitted a complete dossier for receipt of unemployment allowance within 3 months from the date of termination of the labor contract or working contract or from the date of work cessation.
• Within 10 working days from the date of submission of a complete dossier for receipt of unemployment allowance, not falling into any of the following cases:

• Being employed and obliged to participate in compulsory social insurance in accordance with the Law on Social Insurance;
• Performing military service;
• Performing service in the People’s Public Security forces;
• Performing service in the standing militia;
• Attending a study course longer than 12 months;
• Serving a decision on application of the measure of consignment into a compulsory education institution;
• Serving a decision on application of the measure of consignment into a compulsory drug rehabilitation facility;
• Being temporarily detained or serving an imprisonment sentence;
• Going abroad for settlement;
• Being dead.

3. Dossier of application for unemployment allowance

Pursuant to Clause 1, Article 14 of Decree No. 374/2025/ND-CP, a dossier of application for unemployment allowance shall comprise the following documents:

(1) A written request for unemployment allowance made in Form No. 10 promulgated together with Decree No. 374/2025/ND-CP;

(2) Documents certifying termination of a labor contract or a working contract, or cessation of employment. Employees may submit the original, a certified true copy, the original enclosed with a copy for comparison, or an electronic copy of one of the following documents:

• Expired labor contracts or working contracts, or labor contracts or working contracts upon completion of work stated therein;
• Decisions on resignation;
• Decisions on dismissal;
• Disciplinary decisions on forced resignation;
• Notices of termination or agreements on termination of labor contracts or working contracts;
• Certifications issued by employers of termination of labor contracts, containing information on employees, types of labor contracts entered into, and reasons and time of termination of labor contracts;
• Certifications issued by competent state agencies of dissolution or bankruptcy of enterprises or cooperatives, or decisions on removal from office, relief from duty, or dismissal with respect to employees holding enterprise management or cooperative management positions.

In cases where employees do not have documents certifying termination of labor contracts because employing units have no legal representatives or no persons authorized by legal representatives, employees shall request provincial-level Departments of Home Affairs to carry out procedures for certification of termination of labor contracts or working contracts.

Within 03 working days from the date of receipt of employees’ requests, provincial-level Departments of Home Affairs shall send written requests to provincial-level Departments of Finance to certify the status of employing units. Provincial-level Departments of Finance shall be responsible for coordinating with tax offices, police authorities, and local authorities of places where employing units have head offices to conduct verification.

Within 10 working days from the date of receipt of requests for certification from provincial-level Departments of Home Affairs, provincial-level Departments of Finance shall send written replies on whether employing units have legal representatives or persons authorized by legal representatives.

For employees working under fixed-term labor contracts with a term of full 01 month to under 12 months, documents certifying termination of labor contracts shall be originals or certified true copies of such contracts.

(3) Social insurance books.

The above provides information relating to “What is the maximum unemployment allowance from January 01, 2027?” under the latest regulations…