What is current formula for calculating lump-sum social insurance in Vietnam? What conditions must be met to enjoy lump-sum social insurance in Vietnam?

What is current formula for calculating lump-sum social insurance in Vietnam?

Article 19 of Circular 59/2015/TT-BLDTBXH provides for lump-sum social insurance as follows:

1. The lump-sum social insurance is done under the provisions in Article 60 of the Law on social insurance, the Resolution No. 93/2015/QH13 dated 22/06/2015 of the National Assembly on implementing the policy on entitlement to lump-sum social insurance for the employees and Article 8 of Decree No. 115/2015/ND-CP.

The average monthly salary for social insurance payment as a basis for calculating the lump-sum social insurance shall comply with the provisions in Article 62 of the Law on social insurance, Article 9 of Decree No. 115/2015/ND-CP and Article 20 of this Circular. Where the time of social insurance payment under the salary stipulated by the State still misses the number of last years specified in Clause 1, Article 20 of this Circular, the average of monthly salary of the months of social insurance payment.

2. The rate of entitlement to lump-sum social insurance of the employees having the time of social insurance payment of under 01 year is equal to 22% of the rates of monthly salary of social insurance payment, the maximum rate is equal to 02 months of the average monthly salary of social insurance payment.

3. The rate of entitlement to lump-sum social insurance for the employees who have both time of voluntary social insurance and time of compulsory social insurance payment excluding the amount of money financed by the State to pay the voluntary social insurance of each period, except for the case specified under Point d, Clause 1, Article 8 of Decree No. 115/2015/ND-CP. The calculation of lump-sum social insurance is done as the employees are not financed by the state for social insurance payment, then minus the amount financed by the state for compulsory social insurance payment.

According to this Article, the formula for calculating lump-sum social insurance for employees subject to compulsory social insurance payment is as follows:

- Having paid social insurance for full 01 year or more:

- Paying social insurance for less than 01 year:

What is calculation of lump-sum social insurance allowance each year in Vietnam?

In Clauses 2 and 3, Article 60 of the Law on Social Insurance 2014, the lump-sum social insurance benefit is calculated according to the number of years of paying social insurance premiums, each year is calculated as follows:

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.

3. The lump-sum social insurance allowance specified in Clause 2 of this Article is exclusive of the State’s monetary support for payment of voluntary social insurance premiums, except the case specified at Point c, Clause 1 of this Article.

What conditions must be met to enjoy lump-sum social insurance in Vietnam?

According to Clause 1, Article 60 of the Law on Social Insurance 2014, lump-sum social insurance is as follows:

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.

Thus, subjects entitled to lump-sum social insurance must meet the following conditions:

(1) Being eligible for lump-sum social insurance benefits:

Employees being Vietnamese citizens are subject to compulsory social insurance, including:

- Persons working under indefinite-term labor contracts, definite-term labor contracts, seasonal labor contracts or according to a certain job with a term of from full 3 months to less than 12 months, including the labor contract signed between the employer and the legal representative of the person under 15 years of age in accordance with the labor law;

- Persons working under labor contracts with a term of from full 1 month to less than 3 months;

- Officials and civil servants;

- National defense workers, public security workers, and people doing other jobs in cipher organizations;

- Officers and professional soldiers of the People's Army; officers, professional non-commissioned officers, officers and technical non-commissioned officers of the People's Public Security; people doing cipher work receive salaries like military personnel;

- Non-commissioned officers and soldiers of the People's Army; non-commissioned officers and soldiers of the People's Public Security who serve definite-term; Military, police and cipher students who are studying are entitled to living expenses;

- Persons who go to work abroad under the contract specified in the Law on Vietnamese laborers working abroad under the contract;

- The enterprise manager, the executive manager of the cooperative receiving salary;

- People who work part-time in communes, wards and townships.

(2) Belonging to the cases entitled to lump-sum social insurance benefits:

- Employees who are old enough to enjoy the pension as prescribed by law but have not yet paid full 20 years of social insurance payment.

- Female employees who are full-time or part-time workers in communes, wards or townships participating in social insurance when they leave work but have not paid social insurance premiums for less than 15 years and do not continue to participate in voluntary social insurance.

- Workers who move abroad to settle down.

- The employee suffers from one of the 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. 

- Employees who are non-commissioned officers, soldiers of the People's Army, officers, etc. when serving, demobilizing or resigning but are not eligible for pension.

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