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Regulations on one-time social insurance benefits in Vietnam

Regulations on one-time social insurance benefits are a regime for paying a certain amount of money to employees who have participated in social insurance contributions but do not continue to participate in social insurance payments and are not eligible for pension benefits. In this article, Viet An Law will present the regulations on one-time social insurance benefits in Vietnam.

Legal basis

  • The Labor Code 2019 takes effect from January 1st, 2021;
  • The Law on Social Insurance 2014;
  • Decree 115/2015/ND-CP, amended and supplemented by Decree No. 135/2020/ND-CP;
  • Circular 59/2015/TT-BLDTBXH, amended and supplemented by Circular No. 06/2021/TT-BLDTBXH;
  • Circular 01/2023/TT-BLDTBXH.

Employees are entitled to a one-time social insurance

According to the provisions of the law on social insurance, employees who are required to participate in compulsory social insurance are entitled to one-time social insurance if they fall into the following cases:

  • Employees who participate in the compulsory social insurance after 1 year of quitting their job but have not paid the social insurance for 20 years;
  • Employees who are old enough to receive a pension but have not paid the social insurance for 20 years or female employees who work full-time or part-time in communes, wards, or towns participate in the social insurance when they leave their jobs that have not paid the social insurance for 15 years and do not continue to participate in the voluntary social insurance;
  • Employees go abroad to settle;
  • The employee is suffering from one of life-threatening diseases such as cancer, polio, ascites cirrhosis, leprosy, severe tuberculosis, HIV infection that has progressed to AIDS, and other diseases according to the regulations of the Ministry of Medical;
  • Employees include 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 of time; Military, police, and cipher students who are studying are entitled to living expenses. When they serve, demobilize, or quit their job, they are not eligible to receive a pension.

Regulations on one-time social insurance benefits

The Government stipulates that the one-time social insurance benefit for people participating in the compulsory social insurance is calculated based on the number of years of social insurance payment, specifically as follows:

  • 5 months of average monthly salary paid for the 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, the maximum level is equal to 02 months of the average monthly salary paid for social insurance.

How to calculate the one-time social insurance payment

The one-time social insurance amount is determined by a formula

Benefit level = (1.5 x Mbqtl x Time to pay the social insurance before 2014) + (2 x Mbqtl x Time to pay the social insurance after 2014)

Mbqtl is the abbreviation for “average monthly salary” paid for social insurance.

Formula to calculate the average monthly salary paid for social insurance

Mbqtl = (Number of months of the social insurance payment x Monthly salary of the social insurance payment x Annual adjustment level): Total number of months of the social insurance payment

  • If the social insurance payment period has odd months, from 01 to 06 months is counted as ½ year, and from 07 to 11 months is counted as 01 years.
  • In case before January 1st, 2014, if the social insurance payment period has odd months, those odd months will be transferred to the social insurance payment period from January 1st, 2014 onwards.
  • According to Article 2 of Circular No. 01/2023/TT-BLDTBXH, the monthly salary adjustment for the social insurance payment of employees applied from January 1st, 2023 is as follows:
Year Before 1995 1995 1996 1997 1998 1999 2000 2001 2002 2003
Adjustment  level 5,26 4,46 4,22 4,09 3,80 3,64 3,70 3,71 3,57 3,46
Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Adjustment  level 3,21 2,96 2,76 2,55 2,07 1,94 1,77 1,50 1,37 1,28
Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Adjustment  level 1,23 1,23 1,19 1,15 1,11 1,08 1,05 1,03 1,00 1,00

A specific example of the one-time social insurance benefit

Ms. A’s time participating in the social insurance is from October 2013 to August 2019 as follows:

  • From October 2013 – October 2016: Salary 4.500.000 VND/month.
  • From October 2016 – July 2019: Salary 6.000.000 VND/month.
  • A’s total time participating in the social insurance is 5 years and 9 months (rounded to 6 years).
  • Eligible time to submit the dossier for one-time social insurance benefits is from August 2020.
  • If in 2021, Ms. A goes through the procedure to enjoy the one-time social insurance, she will receive:

Average salary = {(15 x 4.500.000 x 1,8) + (12 x 4.500.000 x 1,17) + (10 x 4.500.000 x 1,14) + (2 x 6.000.000 x 1.14) + (12 x 6.000.000 x 1,10) + (12 x 6.000.000 x 1,06) + (7 x 6.000.000 x 1,03): 69 = 6.499.130 ​​VND/month.

Ms. A’s one-time social insurance benefit = 7 x 6.499.130 ​​x 2 = 90.987.826 VND.

This is the content on regulations on one-time social insurance benefits in Vietnam. Clients have any inquiries or demands related to one-time social insurance benefits in Vietnam, please contact Viet An Law for the best support.

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