Does the one-time social insurance benefit increase according to the statutory pay rate?
Will the lump-sum social insurance benefit increase if the base salary increases?
Pursuant to Clause 2, Article 60 of the 2014 Law on Social Insurance, provisions on lump-sum social insurance are as follows:
Lump-sum Social Insurance
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- The lump-sum social insurance benefit is calculated according to the number of years of social insurance contributions, for each year as follows:
a) 1.5 months of the average monthly salary on which social insurance premiums are based, for the years of contribution before 2014;
b) 02 months of the average monthly salary on which social insurance premiums are based, for the years of contribution from 2014 onwards;
c) In cases where the contribution period is less than one year, the lump-sum social insurance benefit is equal to the amount of contributions paid, up to a maximum of 02 months of the average monthly salary on which social insurance premiums are based.
According to the above regulation, the lump-sum social insurance benefit will be calculated based on the number of years of social insurance contributions as follows:
- For years of social insurance contributions before 2014, it will be equivalent to 1.5 months of the average monthly salary on which social insurance premiums are based;
- For years of social insurance contributions from 2014 onwards, it will be equivalent to 02 months of the average monthly salary on which social insurance premiums are based.
In cases where the period of social insurance contributions is less than one year, the lump-sum social insurance benefit will be equal to the amount of contributions paid, up to a maximum of 02 months of the average monthly salary on which social insurance premiums are based.
Therefore, the lump-sum social insurance benefit will depend on the average monthly salary on which social insurance premiums are based, and there is no fixed amount for the lump-sum social insurance benefit.
Hence, it can be seen that the average monthly salary on which social insurance premiums are based is a direct factor affecting the lump-sum social insurance benefit.
Recently, the Government of Vietnam issued two new Decrees, Decree 73/2024/ND-CP and Decree 74/2024/ND-CP, on increasing the statutory pay rate and regional minimum wage.
The increase in the statutory pay rate and regional minimum wage will lead to adjustments in salary policies for employees who are subject to the state's salary policies, as well as for those who implement salary policies decided by employers.
Therefore, if employees receive a salary increase according to the new salary policies, it may result in an increase in their monthly social insurance premiums from July 1, 2024, leading to an increase in the average monthly salary on which social insurance premiums are based from this point onwards.
Thus, while the increase in the statutory pay rate and regional minimum wage will not directly affect lump-sum social insurance benefits, it is expected that the increase in the statutory pay rate and regional minimum wage will lead to an increase in the average monthly salary on which social insurance premiums are based from July 1, 2024, consequently raising the lump-sum social insurance benefit for these individuals.
Will the lump-sum social insurance benefit increase according to the statutory pay rate? (Image from the Internet)
What documents are required for the lump-sum social insurance withdrawal?
According to Article 109 of the 2014 Law on Social Insurance, the documents required for the lump-sum social insurance withdrawal include the following:
[1] Social insurance book.
[2] Application for the lump-sum social insurance benefit from the employee.
[3] For individuals going abroad to settle, a copy of the certification from the competent authority regarding the termination of Vietnamese nationality or a certified or notarized Vietnamese translation of one of the following documents must be submitted:
- Passport issued by a foreign country.
- Visa issued by a competent foreign authority, confirming permission to enter for the purpose of settling abroad.
- Documents confirming that procedures for obtaining foreign nationality are in progress; documents confirming or a residence card with a term of 05 years or more issued by a competent foreign authority.
[4] Extract from the medical record for cases of receiving the lump-sum social insurance benefit due to suffering from one of the life-threatening diseases such as cancer, polio, cirrhosis with ascites, leprosy, severe tuberculosis, HIV infection that has progressed to AIDS, and other diseases as prescribed by the Ministry of Health.
* For those receiving monthly pensions or social insurance benefits who are going abroad for settlement, the documents required for the lump-sum social insurance withdrawal are similar to those in [2] and [3].
What is the time frame for processing the lump-sum social insurance withdrawal?
According to Clause 3, Article 110 of the 2014 Law on Social Insurance, the time frame for processing is stipulated as follows:
Processing monthly pensions, lump-sum social insurance
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- Within 30 days from the date the employee meets the conditions and submits the application for the lump-sum social insurance withdrawal stipulated in Article 109 of this Law to the social insurance agency.
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Therefore, the processing time for the lump-sum social insurance withdrawal is within 30 days from the date the employee meets the conditions and submits their application to the social insurance agency.
