Vietnam SI: Proposal on lump-sum social insurance settlement for foreign employees working in Vietnam

Vietnam SI: Proposal on lump-sum social insurance settlement for foreign employees working in Vietnam (Internet image)

Official Dispatch 2106/BHXH-CSXH

Vietnam Social Security issued Official Dispatch 2106/BHXH-CSXH dated August 4, 2022 on solving problems when settling social insurance benefits for foreign employees working in Vietnam.

The proposal to settle one-time social insurance for foreign employees working in Vietnam is as follows:

In the process of implementing Decree 143/2018/ND-CP detailing the Law on Social Insurance and the Law on Occupational Safety and Health on compulsory social insurance for foreign workers working in Vietnam, Vietnam Social Security Administration faces some problems when dealing with social insurance benefits, specifically as follows:

1. Settlement of lump-sum social insurance benefits in Vietnam

At Point b, Clause 2, Article 60 of the Law on Social Insurance 2014 stipulates that the one-time social insurance benefit is calculated according to the number of years of paying social insurance premiums; each year is calculated as follows:

-  2 times the average monthly salary on which social insurance premiums are based for the years of payment since 2014;

- 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.

According to the provisions of Clause 7 of Article 9 of Decree 143/2018/ND-CP, the one-time social insurance allowance for foreign workers shall comply with the provisions of Point b, Clause 2, Article 60 of the Law on Social Insurance 2014.

Thus, in cases where foreign workers have participated in social insurance for less than 12 months, there is no basis for calculating the benefit rate.

Vietnam Social Insurance proposes that the Ministry of Labor, War Invalids, and Social Affairs guide foreign workers who have participated in social insurance for less than 12 months in applying the calculation method specified at Point c, Clause 2, Article 60 of the Law on Social Insurance.

2. Lump-sum social insurance benefits in Vietnam

In Clause 2, Article 60 of the Law on Social Insurance 2014 stipulates that 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:

- 1.5 times the average monthly salary on which social insurance premiums are based, for the years of payment prior to 2014;

- 2 times the average monthly salary on which social insurance premiums are based for the years of payment since 2014;

- 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.

Note:

- 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 Article 60 of the Law on Social Insurance 2014.

- The time for enjoying the lump-sum social insurance allowance is the time stated in decisions of social insurance agencies.

3. Proposal for settlement of survivor benefits in Vietnam

According to the provisions of Clauses 1 and 2, Article 15 of Decree 143/2018/ND-CP states:

Dossiers for the settlement of survivorship allowance shall comply with the provisions of Article 111 of the Law on Social Insurance 2014, translated into Vietnamese and authenticated in accordance with Vietnamese law.

However, for the dossier, which is the declaration of relatives, there are still problems because the employee's relatives are abroad, so there is no basis to determine which agency is competent to confirm the declaration of the employee's relative.

In order to promptly settle the social insurance benefits for foreign employees working in Vietnam and their relatives, Vietnam Social Security respectfully requests the Ministry of Labor, War Invalids, and Social Affairs guide the implementation of the contents above.

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