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One time social insurance benefit in Vietnam

The right to social insurance is a legal right prescribed by law if specific conditions in each social insurance regime are met. Subjects entitled to receive one time social insurance benefits need to clearly understand how to calculate one time social insurance benefits to protect their rights and benefits. The article below Viet An Law will answer how to calculate one time social insurance benefit in Vietnam.

social insurance

Legal basis

  • Law on Social Insurance 2014, as amended and supplemented in 2015, 2018, 2019.
  • Decree No. 115/2015/NĐ – CP detailing several articles of the Law on Social Insurance regarding compulsory social insurance, amended and supplemented by Decree 89/2020/ND-CP and Decree 135/2020/ND-CP.
  • Circular 59/2015/TT-BLDTBXH detailing and guiding the implementation of several articles of the Law on Social Insurance regarding compulsory social insurance, as amended and supplemented by Circular No. 06/2021/TT-BLDTBXH.

What is one-time social insurance?

Pursuant to Article 3 of the Law on Social Insurance 2014 stipulates: “One-time social insurance is a level of support to compensate a part of an employee’s income when he or she is sick, pregnant or has a work accident or disease.” career, end of working age or death.

Thus, one-time social insurance is a guarantee to replace or partially compensate employees’ income when their income is reduced or lost due to illness, maternity, work accidents, occupational diseases, end of working age, or pass away, based on contributions to the social insurance fund.

Subjects are entitled to one time social insurance benefit in Vietnam

Pursuant to the provisions of Decree No. 115/2015/ND-CP on cases where employees are entitled to one-time social insurance if they belong to one of the following subjects:

  • Employees who are old enough to receive a pension according to regulations but have not yet had enough 20 years of paying social insurance (or less than 15 years of paying social insurance for female workers who work full-time or part-time in communes, wards, towns) and do not continue to participate in voluntary social insurance.
  • Employees participate in compulsory social insurance after one year of quitting their job, and participants in voluntary social insurance after one year do not continue to pay social insurance but have not yet paid social insurance for 20 years.
  • Workers go abroad to settle.
  • People who are suffering from one life-threatening disease such as cancer, polio, cirrhosis, ascites, leprosy, severe tuberculosis, HIV infection that has progressed to AIDS, and other diseases according to regulations of the Ministry of Health.
  • Employees in one of the following cases, when serving, demobilizing, or quitting their job, are not eligible to receive a pension:
  • Officers and professional soldiers of the People’s Army; officers, professional non-commissioned officers, officers, technical non-commissioned officers of the People’s Public Security; People who do cipher work are paid the same as soldiers;
  • Non-commissioned officers and soldiers of the People’s Army; non-commissioned officers and soldiers of the People’s Public Security serving for a limited period; Military, police, and cipher students studying are entitled to living expenses.

Regulation on one time social insurance benefit in Vietnam

Pursuant to Clause 2, Article 60 of the 2014 Law on Social Insurance, the one-time social insurance benefit level is calculated based on the number of years of social insurance payment, each year is calculated as follows:

  • 5 months of average monthly salary paid for social insurance for years of payment before 2014;
  • 02 months of average monthly salary paid for social insurance for years of payment from 2014 onwards;
  • In case the social insurance payment period is less than one year, the social insurance benefit level is equal to the amount paid, and the maximum level is equal to 02 months of the average monthly salary paid for social insurance.

How to calculate one time social insurance benefit in Vietnam

In case employees pay compulsory social insurance

Based on Clause 4, Article 19 of Circular 59/2015/TT-BLDTBXH, the level of one-time social insurance benefits is determined based on the time the employee participates in social insurance and the average monthly salary paid for social insurance.

The way to calculate one time social insurance benefits in Vietnam is as follows:

One-time social insurance benefit = (1.5 × time participating in social insurance before 2014) + (2 × time participating in social insurance after 2014) × average salary

In case employees participate in voluntary social insurance

According to Article 6 of Circular 01/2016/TT-BLDTBXH, the one-time social insurance benefit for employees participating in voluntary social insurance is calculated according to the following formula:

One-time social insurance benefit = (1.5 × average salary x time participating in social insurance before 2014) + (2 × average salary × time participating in social insurance after 2014) – State amount Support for voluntary social insurance contributions

Note:

  • In case the employee has not paid enough social insurance for 1 year, the benefit will be calculated as 22% of the monthly salary for which social insurance has been paid, with a maximum of 02 months of the average salary.
  • Time to participate in odd social insurance: from 1-6 months calculated as ½ year; From 7-11 months counts as 1 year.
  • By January 1, 2014, if the social insurance payment period has odd months, these months will be transferred to the period after 2014.
  • The amount of money the State supports paying voluntary social insurance will not be deducted if the employee suffers from a serious or life-threatening illness.

The amount of money the State supports paying for voluntary social insurance in month A = 0.22 × Poverty line for rural areas A × 30% (poor households) or 25% (near-poor households) or 10% (other subjects)

In particular, the average salary is calculated as follows:

(Number of months of social insurance payment × Monthly salary of social insurance payment x annual adjustment level) / Total number of months of social insurance payment

In case of paying social insurance for less than 1 year

Pursuant to Clause 2, Article 19 of Circular No. 59/2015/TT-BLDTBXH stipulates: “The one-time social insurance benefit of employees whose time of paying social insurance is less than one year is calculated as 22% of the monthly salary for which social insurance has been paid, the maximum level is equal to 02 months of social insurance. Average monthly salary paid for social insurance.”

Thus, in case a person participates in social insurance for less than 1 year, the way to calculate one-time social insurance benefits is as follows:

One-time social insurance benefit = 22% × number of months × monthly salary

Dossier for receiving one-time social insurance

Pursuant to Article 109 of the Law on Social Insurance 2014, regulations on dossiers for one-time social insurance benefits, specifically dossiers include:

  • Social insurance book.
  • An employee’s application for one-time social insurance benefits.
  • For people going abroad to settle, they must also submit a copy of the competent authority’s confirmation of renunciation of Vietnamese nationality or an authenticated or notarized Vietnamese translation of one of the following documents: Passport issued by a foreign country; Visa issued by a competent foreign agency confirming permission to enter for the reason of residing abroad; Documents certifying that you are applying for foreign nationality; Confirmation documents or permanent residence card, valid for 5 years or more issued by a competent foreign agency; Copy medical records in case the social insurance payment period is less than one year; People who are suffering from one of the life-threatening diseases such as cancer, polio, cirrhosis, ascites, leprosy, severe tuberculosis, HIV infection that has progressed to AIDS and other diseases according to regulations of the Ministry of Health.
  • Regarding workers receiving pensions or monthly social insurance benefits who go abroad to settle; or if the employee participates in voluntary social insurance and is receiving a pension and goes abroad to settle down, the application for one-time benefits shall be made according to regulations: the employee’s application for one-time social insurance benefits; A copy of the competent authority’s confirmation of relinquishment of Vietnamese nationality or a certified or notarized Vietnamese translation of the documents.

Form of the one-time social insurance payment

People receiving one-time social insurance benefits can receive benefits directly at the social insurance agency, through public postal services, or receive one-time social insurance benefits through a bank account;

  • In case the beneficiary registers to pay the benefit via ATM, the social insurance agency will transfer money to the registered account number.
  • In case the beneficiary registers to receive a one-time social insurance payment directly, when going to the social insurance agency where the application is processed, you need to bring the appointment letter and citizen identification card to receive payment.

In cases where the beneficiary authorizes another person to receive one-time social insurance to receive it on their behalf. The authorized person shall do so in the following order:

  • Submit the Power of Attorney (form No. 13-HSB) or authorization contract to the social insurance agency or post office where payment is made.
  • Present ID card or identification documents with photo;
  • Receive money and sign for payment on the payment list or receipt.

Where to receive one-time social insurance money?

According to the instructions in Decision 166/QD-BHXH in 2019 and Decision 896/QD-BHXH in 2021, the agency competent to handle one-time social insurance benefits for employees is the social insurance agency where that person resides.

Therefore, employees who need to receive one-time social insurance benefits need to go to the social insurance agency of the district/province where they reside (permanently or temporarily) to submit their application and receive the benefits.

If you have any questions regarding how to calculate one time social insurance benefit in Vietnam and use the social insurance declaration service, please contact Viet An Law Firm for detailed support!

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