Employers who fall under the purview of the decree include foreign offices, organizations and individuals operating in Vietnam which employ more than 10 workers, local government offices, companies, organizations and individuals employing workers.

Employees receiving unemployment insurance must fulfill three conditions. They must have paid unemployment insurance premiums for at least 12 months within 24 months of being unemployed; registered with authorities their unemployment status; and failed to get another job within 15 days of registering their unemployment status.

Social insurance agencies will offer compensation and support for vocational guidance and training, and the unemployed laborers will still receive medical insurance during the period of unemployment.

The compensation rate will be 60 percent of the average salary or wage of the employee for the last six months before being unemployed.

The compensation will be paid for between three and 12 months depending on the time the employee had paid insurance premiums.

Employees will pay one percent of their salaries to the fund for unemployment insurance, employers will pay an equal amount, and the fund will also receive contributions from the government budget.

With around one million Vietnamese reaching legal working age annually, unemployment remains a major concern in rural and urban areas.

The International Labor Organization recently warned the number of unemployed worldwide could rise from 190 million in 2007 to 210 million by late 2009.”

The global financial crisis could increase world unemployment by an estimated 20 million women and men, it said.

Reported by Xuan Toan