Vietnam has officially entered a new chapter in its labor regulatory framework.

The National Assembly has passed the Labor Law of 2025, which will take effect on 1 January 2026, replacing the 2013 Labor Law and establishing a renewed legal foundation for the country’s labor market.

The reform introduces significant structural changes — particularly in unemployment insurance, employer compliance, and labor data governance.

Broader Unemployment Insurance Coverage

One of the most notable changes is the expansion of unemployment insurance eligibility.

Previously centered on long-term formal contract workers, coverage will now extend to:

1. Short-term employees whose contracts have expired for at least one month
2. Part-time employees whose monthly income meets the minimum wage threshold
3. Certain enterprise management personnel who are temporarily awaiting employment

This expansion reflects a shift toward more inclusive social protection, capturing segments of the workforce that were previously outside the system.

Contribution Rates and Employer Accountability

The revised law adjusts unemployment insurance contribution rules and clarifies employer obligations.

The maximum unemployment insurance rate is set at 1% for employees and 1% for employers. At the same time, the Government is authorized to reduce contribution rates in exceptional circumstances when necessary.

Importantly, employers who fail to make full unemployment insurance contributions as required by law will be held financially liable and must compensate affected employees.

Nationwide Labor Registration and Workforce Data System

The new law establishes a legal foundation for a nationwide labor registration database and a working-hours information system.

Both employers and employees will be required to register employment and social insurance information in accordance with regulatory requirements. This move aims to enhance transparency, workforce monitoring, and policy implementation across Vietnam’s labor market.

Stronger Data Privacy Safeguards

Alongside expanded data systems, the law introduces more detailed personal data protection provisions.

Unauthorized extraction, sharing, trading, exchange, misappropriation, or unlawful use of labor-related personal data within official databases will be strictly prohibited.

These measures signal Vietnam’s increasing emphasis on data governance and compliance in the employment ecosystem.