Lump-sum social insurance withdrawal service for foreigners

Social insurance is one of the disbursement of salary worker in Vietnam. With economic development policies, and flexible, efficient, sustainable, and integrated labor market development, the number of foreigners working in Vietnam is increasing every year. Foreigners working in Vietnam have contributed to providing human resources with expertise, management experience, and professional working skills according to international standards, making significant contributions to labor productivity and business performance.

Foreigners working in Vietnam are subject to compulsory social insurance when they have a work permit or practice license issued by a competent Vietnamese agency and have an indefinite-term labor contract or fixed-term labor contract of 01 year or more with an employer in Vietnam.

Lump-sum social insurance withdrawal service for foreigners from Viet An Tax Agent

Step 1: Require clients to provide documents

Check the social insurance payment process through the social insurance book and notify the lump sum social insurance amount the clients receive.

Step 2: Compose and prepare documents

Dossiers for lump-sum social insurance benefits for foreigners include:

• Social insurance book (has been finalized and completed – in case it is not complete, additional documents need to be added to complete it first).
• Application according to form 14-HSB.
• In cases of life-threatening diseases such as cancer, polio, cirrhosis, ascites, leprosy, severe tuberculosis, or HIV infection that has progressed to AIDS, a copy/ summary of medical records is required. The judgment represents a state of not being able to self-serve. For other diseases, instead, there are the Minutes of Assessment of work capacity decline from the Medical Examination Council, showing a work capacity loss of 81% or more and an inability to selfserve.
• In case of payment of fees from the Medical Examination Council, the application needs to include invoices, documents of collection of examination fees, and a detailed list of the content of the examination by the facility performing the Medical Examination.
• Power of Attorney form 13-HSB or Authorization contract (in case of authorization to receive on behalf).
• The employee’s passport is translated into Vietnamese and authenticated according to Vietnamese law.

Step 3: Submit application and receive results

Submit application in one of the following forms:

• Through public postal services;
• Directly at the social insurance agency.

Foreign workers have entitled to lump-sum social insurance withdrawal

Article 9, Clause 6 of Decree 143/2018/ND-CP, foreign workers working in Vietnam and participating in compulsory social insurance contributions will be entitled to lump-sum social insurance when they have requested, in the following cases:

• Employees who are old enough to receive a pension according to regulations but have not paid social insurance for 20 years.
• Workers are suffering from life-threatening diseases such as cancer, polio, cirrhosis, ascites, leprosy, severe tuberculosis, and HIV infection that have progressed to AIDS and other diseases according to regulations of the Ministry of Health.
• Employees are eligible to receive pension according to regulations but do not continue to reside in Vietnam.
• When the employee terminates the labor contract, the practicing certificate or practicing license expires without being renewed.

Lump-sum social insurance benefit level in Vietnam

The lump-sum social insurance amount is calculated based on the number of years of social insurance payment and the average monthly salary paid for social insurance.

• 1,5 months’ average monthly salary paid for social insurance for years of payment before 2014.
• 2 months of average monthly salary paid for social insurance for years of payment from 2014 onwards.

Formula for calculating lump-sum social insurance benefits for foreigners

In which: Mbqtl is the average monthly salary paid for social insurance.

• If the social insurance payment period has any excess months, from 01 to 06 months is counted as half of a year, and from 07 to 11 months is counted as 01 year. In the case before January 1, 2014, if the social insurance payment period has excess months, those will be transferred to the social insurance payment period from January 1, 2014, onwards.
• In case you have not paid for 1 full year, the benefit level is equal to the amount paid, and the maximum level is equal to 02 months’ average salary.

Benefits of foreign workers when paying social insurance in Vietnam

• Foreigners participating in social insurance in Vietnam are entitled to all benefits including lump-sum withdrawal of social insurance if they meet the conditions allowed by law.
• The benefit level and calculation of lump-sum social insurance for foreigners is similar to that of Vietnamese people.

Time limit for settling lump-sum social insurance benefits

• Within 10 days from the time of termination of the labor contract or the time the work permit, practice certificate, or practice license expires (whichever comes first), the employee does not continue to work under the labor contract or not have their license renewed, the employee who requests to receive lump-sum social insurance must apply according to regulations to the social insurance agency.
• Within 05 working days from the date of receipt of complete documents according to regulations, the social insurance agency is responsible for resolving and organizing payment to the employee. In case of failure to resolve, it must respond in copywriting and clearly state the reasons.

Clients who want to use the lump-sum social insurance withdrawal service for foreigners in Vietnam of Viet An Tax Agent, please contact us via Hotline: 0988 856 708 for advice and support.