Some Disadvantages to Know When Receiving Lump-sum Social Insurance

11:42, 11/07/2024

On August 24, 2018, Vietnam Social Security issued Official Dispatch No. 3758/BHXH-TT, attaching an orientation document on key communication contents regarding social insurance policies.

Notably, here are some considerations for employees when opting for a one-time social insurance payout (compared to receiving a pension):

- When receiving a one-time social insurance payout, employees will lose the opportunity to receive a pension, leaving no financial security for old age.- With a 22% monthly salary contribution to the retirement and survivorship fund, the total annual contribution is equivalent to 2.64 months of salary, but the one-time social insurance payout per year of contribution is only equivalent to 2 months of salary;- Certain benefits enjoyed by pensioners will not be available:- The fund fully covers the cost of purchasing health insurance cards (equivalent to 4.5% of the pension);- The State periodically adjusts pension increases based on the consumer price index;- Upon death, the family receives a funeral allowance equal to 10 months of statutory pay rate, and relatives are entitled to monthly survivorship benefits or a one-time survivorship allowance with a minimum of 3 months of the pension.

See more in Official Dispatch 3758/BHXH-TT.

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