The Social Insurance Company of Binh Duong Province has discovered nearly 100,000 labourers resigned to get unemployment insurance benefits. 

 Unemployment insurance becomes an issue in Binh Duong

During the last four months the job centre in Binh Duong has been receiving hundreds unemployment applications each day.

Workers have been changing jobs in Binh Duong Provnce since the beginning of this year, especially in the textile, garment or leather footwear industries, said Director of Binh Duong Social Insurance, Bui Huu Phong.

A number of firms complain that labourers deliberately resign after fulfilling a 12-month contract and paying a year's premium for unemployment insurance, then temporarily resign to collect 60% of their average salary for three months.

They say loophole has been created because the rules on unemployment insurance are not clear concerning cases where labourers resign.

After conducting a recent survey, Binh Duong authorities found out that the construction of industrial zones has increased options for workers and made them seek higher jobs with higher salaries. While there is no real lack of human resources, many workers prefer to collect unemployment benefit while holding out for better-paying positions.

Many enterprises in the area have proposed reducing insurance benefits from 60% of workers' average salaries to 40-50%.

However, Deputy Director of local Department of Labour, Invalids and Social Affairs Nguyen Phung Trung said, "The benefits of 60% is reasonable, since the current average salary is just VND2 million (USD96) per month."

Source: VNS