Vietnam passes law cutting jobless insurance for firms hiring disabled

The law sets the contribution ceiling at 1% of monthly salary.

Vietnam’s National Assembly has approved the 2025 Law on Employment, which takes effect on 1 January, 2026. 

The law allows employers to pay lower unemployment insurance contributions if they hire and keep workers with disabilities.

Under Clause 6, Article 33 of the law, eligible employers will benefit from reduced UI contribution rates for a maximum of 12 months.

The specific reduction level will be defined in subsequent government regulations.

The law sets the UI contribution ceiling at 1% of monthly salary for each of the three parties involved: employees, employers, and the state. 

The state’s contribution will be funded through the central budget.

To ensure proper access to UI benefits, Clause 7, Article 33 also mandates that employers must complete UI contributions before the termination of an employee’s contract. 

If contributions are incomplete, the employer will be responsible for covering the shortfall equivalent to the employee’s UI entitlement.