Proposal to limit the lump-sum social insurance withdrawal to a maximum of 50% for individuals under retirement age. What are the current benefits of lump-sum social insurance?
In Which Cases Can Social Insurance Be Withdrawn in One Lump-Sum According to the Draft Amended Law on Social Insurance?
Based on the content of the Draft Amended Law on Social Insurance. The cases eligible for a one-time social insurance withdrawal are determined in Article 77 of the Draft Amended Law on Social Insurance as follows:
Employees under clause 1 Article 31 of the Draft Amended Law on Social Insurance and clause 2 Article 31 of the Draft Amended Law on Social Insurance may withdraw social insurance in one lump-sum under the following circumstances:
| No. | Circumstances || --- | --- || 1 | Reaching the retirement age but not having contributed to social insurance for 15 years and not continuing to participate in voluntary social insurance || 2 | Moving abroad for settlement || 3 | Suffering from life-threatening diseases such as cancer, poliomyelitis, ascites due to cirrhosis, leprosy, severe tuberculosis, or HIV infection that has transitioned to the AIDS stage || 4 | Suffering from life-threatening diseases not specified in point c of this clause as stipulated by the Ministry of Health || 5 | After 12 months of not participating in mandatory social insurance, not participating in voluntary social insurance, and having less than 20 years of social insurance contributions || 6 | For employees specified in point d clause 1 Article 31 of the Draft Amended Law on Social Insurance and point dd clause 1 Article 31 of the Draft Amended Law on Social Insurance, after 12 months of demobilization, discharge, or resignation, if not participating in mandatory social insurance, not participating in voluntary social insurance, and not eligible for a pension. || 7 | For employees specified in point d clause 1 Article 31 of the Draft Amended Law on Social Insurance and point dd clause 1 Article 31 of the Draft Amended Law on Social Insurance, after 12 months of demobilization, discharge, or resignation, if not participating in mandatory social insurance, not participating in voluntary social insurance, and not eligible for a pension. |
Proposed maximum one-time social insurance withdrawal rate is 50% for those who are not of retirement age? What is the current one-time social insurance payment?
Is the Proposed Maximum One-Time Social Insurance Withdrawal Rate of 50% for Those Not of Retirement Age Correct?
Based on the content of point dd clause 1 Article 77 of the Draft Amended Law on Social Insurance, the maximum rate of one-time social insurance withdrawal of 50% is proposed under Option 02 for those not of retirement age.
To be specific:
One-Time Social Insurance
1. Employees specified in clause 1 and clause 2 Article 31 of this Law may be eligible for a one-time social insurance payment if they request and are in one of the following cases:
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Option 2:
dd) After 12 months of not participating in mandatory social insurance, not participating in voluntary social insurance, and having less than 20 years of social insurance contributions, employees requesting a one-time social insurance payment may withdraw a portion not exceeding 50% of the total time contributed to the retirement and survivorship fund. The remaining social insurance contributions are reserved for the employees to enjoy social insurance benefits when they reach retirement age.
Thus, according to the aforementioned option, those not of retirement age are proposed to withdraw social insurance in one lump-sum with a maximum rate of 50% of the total time contributed to the retirement and survivorship fund.
What Is the Current One-Time Social Insurance Payment?
The current one-time social insurance payment can be based on the provisions in clause 2 Article 60 of the Law on Social Insurance 2014 as follows:
One-Time Social Insurance
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2. The rate of one-time social insurance is calculated based on the number of years of social insurance contributions, with each year counted as follows:
a) 1.5 months of the average monthly salary on which social insurance contributions are based for the years of contribution before 2014;
b) 02 months of the average monthly salary on which social insurance contributions are based for the years of contribution from 2014 onwards;
c) In cases where the social insurance contribution period is less than one year, the one-time social insurance payment is equal to the amount contributed, with a maximum equivalent to 02 months of the average monthly salary on which social insurance contributions are based.
Thus, the one-time social insurance payment is determined as follows:
- The rate of one-time social insurance for participants in mandatory social insurance is calculated based on the number of years of social insurance contributions, with each year counted as follows:
+ 1.5 months of the average monthly salary on which social insurance contributions are based for the years of contribution before 2014;
+ 02 months of the average monthly salary on which social insurance contributions are based for the years of contribution from 2014 onwards.
- The rate of one-time social insurance for participants in voluntary social insurance under clause 2 Article 77 of the Law on Social Insurance 2014 is calculated based on the number of years of social insurance contributions, with each year counted as follows:
+ 1.5 months of the average monthly income on which social insurance contributions are based for the years of contribution before 2014;
+ 02 months of the average monthly income on which social insurance contributions are based for the years of contribution from 2014 onwards.
In which: The time for determining the one-time social insurance payment is the time stated in the decision of the social insurance agency.
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