What is One-Time Social Insurance?
Under Article 3 of the 2014 Social Insurance Law, social insurance (SI) is a mechanism that partially compensates workers for income loss due to illness, maternity, occupational accidents, old age, or death.
One-time social insurance benefits allow participants to receive a lump sum payment instead of waiting to qualify for a pension. This option is available under specific conditions outlined by Vietnamese law.
Eligibility for One-Time Social Insurance Benefits
According to Article 60(1) and Article 77(1) of the 2014 Social Insurance Law, as well as Article 1(1) of Resolution 93/2015/QH13, employees can claim one-time social insurance benefits if they meet one of the following conditions:
- They have reached retirement age but have contributed less than 20 years to the social insurance system.
- Female workers in commune, ward, or town administrative positions who retire without meeting the 15-year minimum social insurance contribution requirement and do not continue with voluntary contributions.
- They are permanently relocating abroad.
- They suffer from life-threatening diseases such as cancer, paralysis, cirrhosis, leprosy, tuberculosis, HIV/AIDS, or other serious illnesses recognized by the Ministry of Health.
- Police officers or military personnel who are discharged but do not qualify for a pension.
- They have been unemployed for one year or have not contributed to voluntary social insurance for one year and have less than 20 years of total contributions.
How to Calculate One-Time Social Insurance Benefits
For Mandatory Social Insurance Participants
As per Article 8(2) of Decree 115/2015/ND-CP, one-time social insurance benefits are calculated based on the years of contributions:
- For contributions made before 2014: 1.5 times the average monthly salary used for SI contributions per year.
- For contributions from 2014 onwards: 2 times the average monthly salary used for SI contributions per year.
Formula for Calculating One-Time Social Insurance Benefits:
Benefit Amount = (1.5 x Avg. Monthly Salary x Years of Contribution before 2014) + (2 x Avg. Monthly Salary x Years of Contribution from 2014 onwards)
Where:
- If contribution periods include partial years: 1-6 months is rounded to 0.5 years, while 7-11 months is rounded to a full year.
- Average monthly salary (Avg. Monthly Salary) is calculated using:
Avg. Monthly Salary = (Total months of contribution x Monthly salary x Annual adjustment rate) / Total months of contribution
According to Circular 01/2025/TT-BLDTBXH, the salary adjustment rate for contributions before 2025 ranges from 5.63 (before 1995) to 1.00 (for 2024-2025).
For Voluntary Social Insurance Participants
As per Article 6 of Circular 01/2016/TT-BLDTBXH, one-time social insurance benefits for voluntary participants follow a similar formula but deduct state-supported contributions:
Benefit Amount = (1.5 x Avg. Monthly Income x Years of Contribution before 2014) + (2 x Avg. Monthly Income x Years of Contribution from 2014 onwards) – State-supported contributions
Where:
- State-supported contributions apply only to voluntary participants (except in cases of life-threatening illnesses).
- The government support rate varies: 30% for poor households, 25% for near-poor households, and 10% for other participants.
- The calculation of Avg. Monthly Income follows the same method as Avg. Monthly Salary for mandatory SI participants.
Special Cases
- Employees with less than one year of contributions receive 22% of their total contributions, but no more than twice their average monthly salary.
- For voluntary SI participants, the state-supported contribution is deducted before applying the 22% calculation.
Required Documents for One-Time Social Insurance Application
According to Decision 222/QD-BHXH (issued on February 25, 2021), the following documents are required:
- Original Social Insurance Book.
- Completed Application Form (Form 14-HSB).
- If relocating abroad: A certified copy of one of the following:
- Foreign passport.
- Visa permitting permanent residence.
- Documents proving nationality application or long-term residency (minimum 5 years).
- If applying due to a life-threatening disease:
- Medical records confirming inability to perform daily activities.
- If suffering from another serious illness, a medical assessment showing at least 81% loss of work capacity.
- Proof of medical examination fees (if applicable).
- For military personnel, additional forms confirming service history may be required.
Processing Time for One-Time Social Insurance Benefits
As per Decision 222/QD-BHXH, processing takes up to 5 working days from the date the Social Insurance Authority receives complete documentation.
Upon approval, the applicant receives:
- The necessary paperwork via in-person collection, postal service, or electronic transactions.
- The financial benefit:
- In-person at the Social Insurance Authority.
- Via bank transfer or postal service.
- If collected by an authorized representative, a power of attorney document must be provided.
Where to Apply for One-Time Social Insurance Benefits
According to Article 2(2) of Decision 166/QD-BHXH, applicants must submit their documents at their district or provincial Social Insurance Authority, depending on jurisdiction.
One-time social insurance benefits provide financial support for those who cannot meet long-term pension eligibility. However, understanding eligibility, calculations, and application procedures is crucial to making an informed decision. By carefully considering personal financial needs and future retirement security, employees can decide whether to opt for one-time benefits or continue contributing to social insurance.
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