The labor ministry has brushed aside a rumor that the unemployment insurance fund is at risk of breaking up, ascertaining that the fund is still secured with the balance of more than VND11.6 trillion at the end of 2011.

Le Quang Trung, deputy head of the Department of Employment under the ministry, said the number of people receiving unemployment allowances had been surging over the last three years, but the increase was modest compared to the number of laborers joining the unemployment protection scheme.

For instance, the ratio of beneficiaries to insurance participants was a mere 2.17% in 2010, and then rose to 3.67% in 2011. “These figures are much lower than our estimate of 8%,” said Trung at the review conference on unemployment insurance on Thursday.

According to the General Statistics Office, the jobless rate of people in working age was 2.88% in 2010. The average unemployment rate in urban areas since 2010 is estimated at 4.7%.

Even if the number of laborers participating in unemployment insurance matches the jobless rate mentioned above, the security of the unemployment insurance fund is still ensured, said Trung.

In 2011, the number of people claiming for unemployment insurance benefits rose 77% against 2010. Nguyen Xuan Hoa, deputy minister of labor, said it is because the number of people joining unemployment insurance and the number of those qualified for unemployment benefits both increased.

Moreover, multiple enterprises have dissolved in recent times, while others are struggling with declining order quantity and rising inventories, resulting in a large number of jobless people.

According to the ministry, the number of people paying the highest insurance premium, at 1% of their earnings that are regulated at no more than 20 times of the minimum wage, is not higher than the average.

HCMC has the most maximum premium payers, 38,000 people, accounting for 2.6% of the total number of insurance participants, but only 2.7% of them registered for jobless benefits in the first two months of 2012.

There is information that many laborers will enjoy unemployment benefits of VND16 million per month in the coming time. However, Trung said it is impossible because the highest salary registered for unemployment insurance is VND16.6 million per month, in which the employee pays 1%, the employer 1% and the State 1%.

Therefore, the maximum unemployment benefit can only be VND9.96 million a month, or 70% of the maximum registered wage.

SGT