How to calculate the lump-sum social insurance benefits for foreigners in Vietnam in 2023?
- What is the time limit for settlement of lump-sum social insurance benefits for foreign workers in Vietnam?
- What is the application for lump-sum social insurance benefits for foreign workers in Vietnam?
- How to calculate the lump-sum social insurance benefits for foreigners in Vietnam in 2023?
- What are the conditions for enjoying lump-sum social insurance benefits for foreign workers in Vietnam?
What is the time limit for settlement of lump-sum social insurance benefits for foreign workers in Vietnam?
On February 25, 2022, the Ho Chi Minh City Social Insurance issued Official Dispatch No. 772/BHXH-CD in 2022 on applications for lump-sum social insurance benefits for foreigners in Vietnam.
According to that, Official Dispatch No. 772/BHXH-CD in 2022 provides guidance on the time limit for settlement of lump-sum social insurance benefits as follows:
Submission deadline:
If a foreign employee wishes to claim lump-sum social insurance benefits, he/she must submit an application to the relevant social security office at least 10 days prior to the date on which his/her employment contract is terminated or his/her work permit, practicing certificate or license expires (whichever comes first).
- Processing time limit:
Within 05 working days from the receipt of an adequate application as prescribed, the social security office shall process the application and make payments to the applicant. If an application is refused, a written response indicating reasons for such refusal shall be given.
What is the application for lump-sum social insurance benefits for foreign workers in Vietnam?
In Official Dispatch No. 772/BHXH-CD in 2022, the application for lump-sum social insurance benefits includes:
- The (original) social insurance book in which the social insurance participation period has been aggregated and certified.
- The application form No. 14-HSB.
- The power of attorney made in accordance with regulations of law (if any).
If a person is suffered from a life-threatening diseases such as cancer, polio, ascites, leprosy or severe tuberculosis or a HIV-positive person who develops AIDS, the application must also include the medical record extraction/summary certifying the patient's inability to take care of himself/herself; if a person contracts another disease, the application shall include the report on assessment of work capacity reduction given by the medical assessment council to certify the patient’s work capacity reduced by 81% or more severe and the patient's inability to take care of himself/herself.
Invoices/payment receipts and list of medically assessed contents given by the medical assessment service provider, in case of payment of medical assessment charges.
Notes: When submitting an application for lump-sum social insurance benefits for a foreigner, that foreigner's passport which has been translated into Vietnamese and certified in accordance with regulations of law of Vietnam must be presented.
How to calculate the lump-sum social insurance benefits for foreigners in Vietnam in 2023?
How to calculate the lump-sum social insurance benefits for foreigners in Vietnam in 2023?
According to the provisions of Article 60 of the 2014 Law on Social Insurance of Vietnam as follows:
Lump-sum social insurance benefits
1. Employees defined in Clause 1, Article 2 of this Law are entitled to a lump-sum social insurance allowance upon their request when falling in one of the following cases:
a/ They have reached the retirement age specified in Clause 1, 2 or 4, Article 54 of this Law but have paid social insurance premiums for under full 20 years, or the age specified in Clause 3, Article 54 of this Law but have paid social insurance premiums for under full 15 years and do not continue paying voluntary social insurance premiums;
b/ They settle abroad;
c/ They get a fatal disease, such as cancer, poliomyelitis, dropsy cirrhosis, leprosy, serious tuberculosis, or HIV infection progressing into AIDS, or other diseases as prescribed by the Ministry of Health;
d/ Employees defined at Points dd and e, Clause 1, Article 2 of this Law who are demobilized or cease working without being eligible for pension.
2. The lump-sum social insurance allowance shall be calculated based on the number of years of social insurance premium payment; for each year of payment it must equal:
a/ 1.5 times the average monthly salary on which social insurance premiums are based, for the years of payment prior to 2014;
b/ 2 times the average monthly salary on which social insurance premiums are based for the years of payment since 2014;
c/ For a period of social insurance premium payment of under 1 year, the social insurance allowance must equal the paid premium amount but not exceed 2 times the average monthly salary on which social insurance premiums are based.
Thus, according to the above regulations, the lump-sum social insurance benefits for foreigners shall be calculated based on the number of years of social insurance premium payment; for each year of payment it must equal:
+ 2 times the average monthly salary on which social insurance premiums are based for the years of payment since 2014
Note: For a period of social insurance premium payment of under 1 year, the social insurance allowance must equal the paid premium amount but not exceed 2 times the average monthly salary on which social insurance premiums are based.
What are the conditions for enjoying lump-sum social insurance benefits for foreign workers in Vietnam?
Article 9 of Decree No. 143/2018/ND-CP stipulates as follows:
Retirement benefit
…
6. Cases of the one-off SI benefit entitlement
If the employee defined in clause 1 Article 2 hereof wishes to receive the one-off payment, he/she shall be entitled to the one-off benefit entitlement provided that:
a) He/she reaches the prescribed age as provided in clause 1 of this Article, but has not yet reached the period of 20 years of SI contribution;
b) He/she is currently suffering from one of the deadly diseases, such as cancer, polio, cirrhosis with ascites, lapra, serious tuberculosis, HIV infection moved to the phase of AIDS disease and others regulated by the Ministry of Health;
c) He/she has fully satisfied retirement pension entitlement requirements as per clause 1 of this Article, but has discontinued residing in Vietnam;
d) His/her employment contract is terminated, or his/her labor permit, practicing certificate or practicing license expires without being permitted for renewal.
Thus, foreigners who fall into one of the above cases will be entitled to a lump-sum social insurance benefits.
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