Vietnam’s 2025 Employment Law (No. 74/2025/QH15) – New Unemployment-Insurance Rules Employers Must Know

The 2025 Employment Law (Law No. 74/2025/QH15) was passed on 16 June 2025 and takes effect on 1 January 2026, replacing the 2013 Employment Law. It directly affects employers’ obligations in the employment relationship, especially unemployment insurance (UI). Employers should update promptly to stay compliant and avoid enforcement risk.

Mục 01Four major UI changes from 1 January 2026

Employer contribution – capped at 1%

Under Article 33, the employer contributes up to 1% of the monthly payroll of employees participating in UI. The “up to 1%” formulation gives policy flexibility versus the previous fixed rate; watch for detailed guidance to apply it correctly.

Wider coverage

The law widens UI participation, shortening the minimum contract term for coverage to 1 month. More short-term contract workers will fall within scope, triggering registration and contribution obligations for the employer.

Full contribution on termination

Under Article 33(7), upon terminating a labour/working contract, the employer must fully contribute UI so the employee’s entitlements can be settled promptly. Employers need clear termination procedures to avoid delays.

Faster benefit processing

The law shortens the time to settle unemployment benefits, aiming to protect workers faster. Employers should cooperate by providing documents and confirmations on time.

Mục 02What employers should prepare

(1) Review all workers, including those on 1-month-plus contracts, to determine UI scope correctly; (2) update UI calculation, registration and contribution processes; (3) standardise termination handling to contribute fully and close records on time; (4) update internal rules, regulations and labour contract templates to align with the 2025 Employment Law.

Mục 03FAQ

1. When does the 2025 Employment Law take effect?
1 January 2026 (Law No. 74/2025/QH15, passed 16 June 2025), replacing the 2013 law.

2. What is the employer’s UI contribution?
Up to 1% of the monthly payroll of UI-participating employees (Article 33).

3. Do short-term contracts require UI?
The law widens coverage to labour contracts of 1 month or more; review each case.

4. What are the employer’s UI obligations on termination?
To fully contribute UI so entitlements are settled promptly (Article 33(7)).

Mục 04HTIC by your side

HTIC Law Firm LLC (HCMC) supports enterprises in labour-law compliance under the 2025 Employment Law: reviewing UI scope, updating HR processes, standardising labour contracts and internal rules, and handling termination issues. Contact HTIC for advice suited to your company’s size and sector.