“Procedure for providing benefits from the Unemployment Insurance Fund” were revised by the Resolution No.9 on July 21, 2021 of the National Council of Social Insurance. We discussed with Ms.B. Undram, an officer of the Social Insurance Policy Implementation and Coordination Department of the Ministry for Labour and Social Protection, about the changes in the regulation that affect the process of receiving the insured's benefits and the main reforms of the related regulation.

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-How are insureds entitled to receive unemployment benefits?

-Article 2 of the Law on Unemployment Benefits from the Social Insurance Fund states that “Insured persons shall be entitled to unemployment benefits and vocational training if they have paid unemployment insurance premiums for at least 24 months before their dismissal, including the last nine months”. Article 5 of the law also states that “a dismissed insured shall be obliged to register with the local employment office within 14 days after the settlement with the employer and within three months if there is a valid reason, or to the social insurance organization in the absence of the local branch”.

-How have unemployment benefits been paid in the last three years?

-The Unemployment Insurance Fund spent in total of 34.3 billion MNT to 21,423 people in 2018, 43.5 billion MNT to 29,064 people in 2019, and 50.2 billion MNT to 21,374 people in 2020. In accordance with new mechanism of regulations, 22,000 people a year can apply for unemployment benefits online, saving their time and money.

Explain the main regulations in the revised procedure for providing benefits from the Unemployment Insurance Fund?

-The social insurance book digitalization process was approved by the joint Order No. 246 and A / 245 of 2020 of the Minister for Finance and the Minister for Labour and Social Protection. With the result of the electronic social insurance book, it has become possible to digitalize some services provided by the social insurance fund. It provides for electronic communication between the labour organization, the social insurance organization and the insured. The General Agency of Social Insurance shall notify the employment agency electronically about the termination of unemployment benefits on time. It also stated that the application can be sent electronically to the social insurance office. This will prevent delays in obtaining social insurance services, regardless of time and distance, facilitate paper work, reduce workload, increase legal awareness, create false documents for benefits, and protect against possible risks in the social insurance fund. An insured who has been temporarily released from the civil service on the grounds specified in Articles 46.1.1 and 46.1.2 of the Civil Service Law shall be granted unemployment benefits if he / she is entitled to unemployment benefits and meets the conditions specified in the law. However, Article 3.1 of the Law on Pensions and Benefits from the Social Insurance Fund stipulates that the compulsory insured shall not receive unemployment benefits if the employer is responsible for paying the pension and benefit insurance premiums for that period. The social insurance organization stipulates that the insured's monthly allowance may be paid up to twice or once a month, depending on the insured's request.

-What law regulates the issue of unemployment benefits in general?

-According to the Law on Social Insurance, unemployment insurance is paid by the social insurance fund and unemployment benefits are provided to the insured.

-What documents are required for unemployment benefits?

- To receive unemployment benefits from the social insurance fund, the insured must submit the following documents.

·         Insured's application,

·         social insurance book or reference,

·         decision on dismissal

·         ID card, a copy of it,

·         notice of registration of unemployment,

·         expiring contract,

·         contract of employment and other similar contracts.

-How long does it take to receive unemployment benefits?

- Unemployment benefits will be paid to the insured within 76 working days from the day following the registration in accordance with Article 6 of the Law on Unemployment Benefits.

 How are the benefits calculated ?

- Unemployment benefits shall be calculated at the rate specified in Article 3 of the Law on Unemployment Benefits from the Social Insurance Fund based on the average salary of the last three months of his/her full time job and similar income, taking into account the length of service paid by the insured. For example, the length of service is 45 percent for up to five years, 50 percent for 5-10 years, 60 percent for 10-15 years, and 70 percent for 15 or more years. In determining the average monthly wage and similar income to calculate the amount of unemployment benefits, the sum of three months' wages and similar income is divided by three, and the average monthly wage and similar income is calculated from the Social Insurance Fund. Multiply by the percentage corresponding to the period of service (year) for which the premium specified in Article 1 is paid and divide by 100. To calculate the amount of benefits per working day, the amount of unemployment benefits per month specified in this Law shall be divided by the average number of working days per month (21.2 days). The amount of unemployment benefits to be paid to the insured shall be determined by multiplying the amount of benefits per working day by 76 working days.

-Does the revised regulation have any provisions on control and responsibility?

- General Agency of Social Insurance and their branches will monitor whether the unemployment benefit recipient is involved in the vocational and retraining, payment, and calculation of benefits. Officials, insured persons and employers who violate this regulation are subject to additional penalties specified in the relevant legislation.

-If you had a second job outside of your main job, will you receive unemployment benefits?

 -According to the employment contract concluded outside the main job and the contract specified in the Articles 343 and 359 of the Civil Code, unemployment benefits are provided only in case of dismissal of the full-time job of insured person. Unemployment benefits shall not be paid in accordance with the rules and regulations set forth in the Law on Social Insurance if the insured pays social insurance premiums and works from the day following the day of dismissal.

-How is the “Procedure for providing benefits from the Unemployment Insurance Fund” approved?

-Article 6, paragraph 3 of the Law on Unemployment Benefits from the Social Insurance Fund states that “The procedure for granting benefits from the Unemployment Insurance Fund shall be approved by the National Council of Social Insurance based on the proposal by the authority or the Ministry in charge of social protection issues”.

-What activities does the social insurance organization regulate to provide benefits from the unemployment insurance fund?

-General Agency of Social insurance and its local branches receive and register applications for unemployment benefits, calculate benefits, monitor dismissals, and finance training costs from the fund if the unemployment benefit recipients receive vocational and retraining. In addition, General Agency of Social Insurance and its local branches monitor whether the unemployment benefit recipient is involved in the calculation, payment, and vocational and retraining.

-What is the role of the labour organization for unemployment benefits?

- The organization in charge of labour issues provides information on registration of unemployed insured, opportunities in employment services, projects and programs, labor market, counseling, training, and placement of unemployment benefit recipients in temporary and permanent jobs. This information shall be communicated to the social insurance organization of the citizen on time.

An average of 22,000 people receives benefits from the Unemployment Insurance Fund each year. You mentioned at the beginning of the interview that the new regulations will allow anybody to receive unemployment benefits electronically and save time and money. When will the electronic system for receiving social insurance applications and materials for unemployment benefits be ready?

-The social insurance organization is working to receive applications and materials for unemployment benefits electronically and prepare an electronic system for providing benefits. Relevant software will be introduced within October.