From July 1, 2025, will there be two additional subjects eligible for lump-sum social insurance benefits in Vietnam? How are the lump-sum social insurance benefits calculated?
From July 1, 2025, will there be two additional subjects eligible for lump-sum social insurance benefits in Vietnam?
Based on Article 102 of the Social Insurance Law 2024, the provisions are as follows:
lump-sum Social Insurance Benefits
1. Individuals specified in Clause 4, Article 2 of this Law who have the request are entitled to a lump-sum social insurance benefit if they fall into one of the following cases:
a) Reaching retirement age as prescribed in Clause 2, Article 169 of the Labor Code but having less than 15 years of social insurance contribution and no longer continue to participate in social insurance.
In case the employee does not receive a lump-sum social insurance benefit, they can choose to receive monthly benefits as prescribed in Article 23 of this Law;
b) Emigrating abroad for settlement;
c) Suffering from cancer, paralysis, decompensated cirrhosis, severe tuberculosis, AIDS;
d) Having a labor capacity reduction of 81% or more; severely disabled;
đ) Employees who have paid social insurance contributions before this Law comes into effect, after 12 months of not continuing to pay social insurance yet have not accumulated 20 years of social insurance contributions.
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According to the above regulations, the following individuals are entitled to lump-sum social insurance benefits upon request:
- Vietnamese citizens aged 15 and older who are not subject to compulsory social insurance and are not receiving a pension, social insurance benefits, or monthly allowances;
- The following two subjects who are temporarily suspending their labor contracts or working contracts, subject to voluntary social insurance (except where both parties have agreed on compulsory social insurance payment during this period):
+ Employees working under indefinite-term labor contracts, definite-term labor contracts with terms of 01 month or more, including cases where employees and employers agree under different names but contain content related to paid employment under the management, direction, and supervision of one party;
+ Officials and public employees;
The above-mentioned individuals are eligible to withdraw lump-sum social insurance if they fall into one of the following cases:
- Reaching retirement age as prescribed in Clause 2, Article 169 of the Labor Code 2019 but having less than 15 years of social insurance contribution and no longer continue to participate in social insurance.
In case the employee does not receive a lump-sum social insurance benefit, they can choose to receive monthly benefits as prescribed in Article 23 of the Social Insurance Law 2024;
- Emigrating abroad for settlement;
- Suffering from cancer, paralysis, decompensated cirrhosis, severe tuberculosis, AIDS;
- Having a labor capacity reduction of 81% or more; severely disabled;
- Employees who have paid social insurance contributions before the Social Insurance Law 2024 takes effect, after 12 months of not continuing to pay social insurance yet have not accumulated 20 years of social insurance contributions.
Thus, from July 1, 2025, the Social Insurance Law 2024 has added two more categories eligible for lump-sum social insurance withdrawal, including:
- Persons with a labor capacity reduction of 81% or more;
- Severely disabled persons.
From July 1, 2025, will there be two additional subjects eligible for lump-sum social insurance benefits in Vietnam? (Internet image)
How is the lump-sum Social Insurance Benefit in Vietnam Calculated?
Based on Clause 2, Article 102 of the Social Insurance Law 2024, the lump-sum social insurance benefit is calculated based on the number of years of insurance contributions and the basis of social insurance contributions, calculated as follows for each year:
- Equal to 1.5 times the average monthly income of social insurance contributions for the years prior to 2014.
If the period of social insurance contribution includes both before and after 2014, any odd months of contribution before 2014 will be carried over to the period of social insurance contribution from 2014 onwards to calculate the lump-sum social insurance benefit;
- Equal to 2 times the average monthly income of social insurance contributions for the years from 2014 onwards;
- If the social insurance contribution period is less than one year, the benefit amount is equal to the amount paid but must not exceed 2 times the average monthly income used as the basis for social insurance contributions.
*Note:
- The lump-sum social insurance benefit for those supported by the state budget does not include the state budget's contribution support for voluntary social insurance, except for:
+ Persons with a labor capacity reduction of 81% or more; severely disabled persons;
+ Employees who have paid social insurance contributions before the Social Insurance Law 2024 takes effect, after 12 months of not continuing to pay social insurance yet have not accumulated 20 years of social insurance contributions.
- The time to calculate the lump-sum social insurance benefit is the date recorded in the decision of the social insurance agency.
- In case an employee meets the conditions for both receiving a pension and lump-sum social insurance benefit, the employee can choose to receive either a pension or a lump-sum social insurance benefit:
+ Emigrating abroad for settlement;
+ Suffering from cancer, paralysis, decompensated cirrhosis, severe tuberculosis, AIDS;
+ Having a labor capacity reduction of 81% or more; severely disabled persons;
When does the Social Insurance Law 2024 Take Effect in Vietnam?
According to Article 140 of the Social Insurance Law 2024, the provisions are as follows:
Effectiveness
1. This Law takes effect from July 1, 2025.
2. The Social Insurance Law No. 58/2014/QH13, amended and supplemented by Law No. 84/2015/QH13, Law No. 35/2018/QH14, the Penal Code No. 45/2019/QH14 (collectively referred to as Law No. 58/2014/QH13) and Resolution No. 93/2015/QH13 dated June 22, 2015, of the National Assembly on the implementation of social insurance policy for employees, cease to be effective from the date this Law takes effect.
The Social Insurance Law 2024 takes effect in Vietnam from July 1, 2025.
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