Can Employees Get a Refund for Overlapping Social Insurance and Unemployment Insurance Contributions?

Can the employee get a refund when paying duplicate social insurance, unemployment insurance? (Illustration)

The Editorial Board of THU KY LUAT would like to clarify as follows:

1. Can the payment be refunded when paying duplicate social insurance, unemployment insurance?

Based on Clauses 2.5 and 7, Article 17 of Decision 595/QD-BHXH, it is stipulated that:

Refund: is the act of the social insurance agency returning the amount determined not to be the contribution for social insurance, health insurance, unemployment insurance, occupational accident insurance, or redundant payment when transactions with the social insurance agency cease; duplicate payment for an agency, unit, or individual who has paid to the social insurance agency.

Additionally, Clause 4, Article 7 of Decree 146/2018/ND-CP stipulates that in cases where a person simultaneously belongs to multiple health insurance coverage categories, the health insurance payment is to be made in the following order: By the employee and the employer; by the social insurance agency; by the state budget; by the employer.

Thus, based on the above regulations, if the employee’s duplicate social insurance, unemployment insurance payment is confirmed to be redundant, the social insurance agency will refund the paid amount.

2. What is the refund amount?

According to Clause 67, Article 1 of Decision 505/QD-BHXH, amending and supplementing Item e, Point 3.1, Clause 3, Article 43 of Decision 595/QD-BHXH as follows:

In the case where one person has more than 02 social insurance books, with overlapping social insurance, unemployment insurance payment periods, the social insurance agency will refund to the employee the amount paid by the unit and the employee into the retirement and survivorship fund and the amount paid into the unemployment insurance fund (including the amount under the employer's responsibility to pay for social insurance, unemployment insurance), excluding interest. The social insurance agency managing the place where the employee is working or living will process the refund for the employee as per Clause 2, Article 46 of Decision 595/QD-BHXH, as amended by Clause 72, Article 1 of Decision 505/QD-BHXH.

Moreover, according to Articles 5 and 14 of Decision 595/QD-BHXH, it is stipulated that:

- The contribution rate to the retirement and survivorship fund is 22%, with the employee contributing 8% and the employer contributing 14%;- The unemployment insurance contribution rate is 1% from the employee and 1% from the employer.

Thus, based on the above regulations, in cases where the employee has overlapping social insurance and unemployment insurance payment periods, the social insurance agency will refund the paid amount into the retirement and survivorship fund (22%) and the unemployment insurance fund (2%) to the employee.

**Example: On October 01, 2019, Mr. A signed a labor contract and joined social insurance at Company T with a salary of 9,000,000 VND. However, Mr. A reviewed his social insurance book and found that the former company K also paid social insurance for him until the end of October with a salary of 8,500,000 VND, which overlapped by 1 month with Company T. Therefore, the refund for Mr. A is calculated as follows:

- Refund amount to the retirement and survivorship fund: 8,500,000 x 22% x 1 = 1,870,000;- Refund amount to the unemployment insurance fund: 8,500,000 x 2% x 1 = 170,000;- Total amount: 2,040,000 VND.

Ty Na

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