Tiếng Việt
中文 (中国)
(Vietnam) Due to the Covid-19 pandemic, there have been many cases in which the employees have had to take one-time social insurance in Vietnam. Most people know that this is bad for them in the long run, however, they have no other options cause their finances are devastated by the pandemic. So, if the employees are going to take the one-time social insurance, it’s best that they clearly understand their rights. So, what are the regulations on one-time social insurance in Vietnam?
Conditions for receiving one-time social insurance in Vietnam
To receive one-time social insurance benefits in Vietnam, the employee must satisfy one of the following conditions:
- Having reached the prescribed retirement age, but have not yet paid the full 20 years of payment of social insurance and do not participate in voluntary social insurance.
- Employees participate in compulsory social insurance after one year off from work.
- Employees participate in voluntary social insurance after one year off from contributing but have not yet paid social insurance for 20 years.
- Employees go abroad to settle down.
- Employees suffer from life-threatening diseases such as cancer, polio, cirrhosis of the liver ascites, leprosy, severe tuberculosis, HIV infection that has progressed to AIDS, and other diseases as prescribed by the Ministry of Health.
- Police and soldiers in time of serving, demobilizing, or resigning but are not eligible for pension.
Procedures for receiving one-time social insurance in Vietnam
To receive one-time social insurance, the employees need to carefully prepare a dossier and submit it to the district social insurance agency or the provincial social insurance agency.
It should be noted that the preparation of the dossier should be consulted with a renowned lawyer in this field cause there have been many cases in which the employees have had to take multiple trips to satisfy all the required documents and fix all the errors in the application.
Basically, a dossier for a one-time social insurance benefit must include the following documents:
- Social insurance book.
- An application form for one-time social insurance benefits.
- A copy of the certification of the competent authority on renunciation of Vietnamese nationality or a certified/notarized Vietnamese translation passport issued by a foreign country, visa, etc. (For people going abroad to settle down)
- A report on the assessment of the level of working capacity decrease from the Medical Assessment Council showed the decrease in working capacity from 81% or more (For employees suffering from life-threatening diseases).
- Personal declaration of time and location of military service with regional allowances, made according to Form No. 04B-HBKV (For police and soldiers).
- Other required documents (If needed).
One-time social insurance allowance in 2021
Clause 2, Article 8 of Decree 115/2015/ND-CP stipulating how to calculate one-time social insurance based on the number of years of paying the social insurance premium, each year is calculated by:
- 1.5 months the average monthly salary on which social insurance premiums are based for the years of payment before 2014;
- 02 months the average monthly salary on which social insurance premiums are based for the years of payment from 2014 onwards.
Specifically, according to Article 19 of Circular 59/2015/TT-BLDTBXH, the one-time social insurance amount is determined by the formula:
Benefit level = (1.5 x average monthly salary on which social insurance premiums are based x Time of payment of social insurance premium before 2014) + (2 x average monthly salary on which social insurance premiums are based x Time of paying social insurance premiums after 2014)
Note:
The one-time social insurance allowance for employees who have paid social insurance premiums for less than 1 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 the average monthly salary on which social insurance premiums are based.
ASL LAW is the top-tier Vietnam law firm for Employment and Labor Law. If you need any advice, please contact us for further information or collaboration.
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