When working in Vietnam, many foreign workers often wonder: if they resign from their jobs or leave Vietnam, are they entitled to a one-time social insurance (SI) payment? This is a legitimate benefit, but not everyone fully understands the specific conditions. The following article clarifies when foreign workers are eligible to receive this benefit in practice and under the law.
1. Conditions for Receiving a One-Time Social Insurance Payment
Pursuant to Clause 2, Article 70 of the Law on Social Insurance 2024, after terminating participation in social insurance, an individual shall be entitled to a one-time social insurance payment upon request if falling under one of the following cases:
- Having reached retirement age but having paid social insurance contributions for less than 15 years.
- Suffering from one of the following diseases: cancer, poliomyelitis, decompensated cirrhosis, severe tuberculosis, or AIDS.
- Suffering from a work capacity reduction of 81% or more, or being classified as a person with a particularly severe disability.
- Being eligible for pension benefits but no longer residing in Vietnam.
- Termination of the labor contract.
- Expiration of work permit, practicing certificate, or professional license without extension.
2. Level of One-Time Social Insurance Payment
According to Clause 7, Article 9 of Decree No. 143/2018/NĐ-CP, the level of one-time social insurance benefit is determined under Point b, Clause 2, Article 60 of the Law on Social Insurance.
However, pursuant to the Law on Social Insurance 2024, specifically Point b, Clause 3, Article 70, the benefit level is calculated based on the number of years of contribution and the basis of social insurance contributions. Accordingly, foreign workers are entitled to:
b) Two (02) months’ average monthly salary on which social insurance premiums are based, for each year of contribution from 2014 onwards.
The calculation formula is as follows:
One-time SI benefit = 2 x (Average monthly salary used as the basis for SI contributions) x (Number of years of SI contributions).
Where:
- Average monthly salary used as the basis for SI contributions = (Total salary used for SI contributions by year) x (Salary adjustment coefficient) / (Total months of SI contributions).
- Number of contribution years shall be rounded as follows: from 01–06 months = 0.5 year; from 07–11 months = 01 year.
→ Foreign workers can calculate their one-time SI benefit using the official calculator at: https://luatvietnam.vn/tinh-bao-hiem-xa-hoi-1-lan.html or directly access the online SI benefit calculation system.
The point of time for calculation of the one-time SI benefit is the date specified in the Decision of the social insurance agency.
3. Procedures for Submitting the Application for Lump-sum Social Insurance Benefits
Step 1: Prepare a complete dossier
Pursuant to Article 78 of the Law on Social Insurance 2024, the application dossier for lump-sum benefits shall include:
- The social insurance book;
- A written request for lump-sum social insurance benefits from the employee (Form No. 14-HSB enclosed with Decision No. 686/QĐ-BHXH dated 29 May 2024 of Vietnam Social Security);
- A summary judgment of the medical record or the original/certified copy of the hospital discharge paper (in case the employee suffers from cancer, etc.);
- The minutes of medical assessment on the degree of working capacity reduction issued by the Medical Assessment Council, accompanied by invoices and payment vouchers, or a certified copy of the certificate of severe disability (in case of injury with a working capacity reduction of over 81% or severe disability);
- Identification documents (Passport, temporary/permanent residence card, etc.);
- A notarized power of attorney (if the application is submitted on behalf of another person).
Step 2: Submit the dossier to the competent State authority
- Directly at the social insurance agency where the employee resides or where the enterprise pays social insurance;
- Via postal service by sending the dossier;
- Online through the Vietnam Social Security Public Service Portal.
- Time limit: Within 10 days from the date on which the conditions for entitlement to lump-sum social insurance benefits arise.
Step 3: Await processing
- Processing time: 07 working days from the date of receipt of a complete and valid dossier (Clause 3, Article 79).
Step 4: Receive the result
- If the dossier is valid, the employee shall receive the Decision, the record of social insurance contributions, and the benefit payment.
- If the dossier is rejected, the social insurance agency must issue a written reply stating the reasons therefor.
Understanding clearly the conditions for entitlement to lump-sum social insurance benefits not only helps foreign employees safeguard their lawful rights but also avoids unnecessary complications upon termination of their employment contract in Vietnam. The rights of every individual deserve to be duly guaranteed.
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