Cases entitled to lump-sum social insurance allowance in Vietnam

Cases entitled to lump-sum social insurance allowance in Vietnam (Internet image)

1. What is lump-sum social insurance?

Pursuant to Article 3 of the Law on Social Insurance 2014, social insurance means the guarantee to fully or partially offset an employee’s income that is reduced or lost due to his/her sickness, maternity, occupational accident, occupational disease, retirement or death, on the basis of his/her contributions to the social insurance fund.

In particular, lump-sum social insurance allowance is one of the benefits that the participants of social insurance are entitled to if they meet all the conditions.

2. Cases entitled to lump-sum social insurance allowance in Vietnam

According to Clause 1, Article 60 of the Law on Social Insurance 2014, the cases entitled to lump-sum social insurance allowance include:

- They have reached the retirement age specified in Clause 1, 2 or 4, Article 54 of the Law on Social Insurance 2014 but have paid social insurance premiums for under full 20 years, or the age specified in Clause 3, Article 54 of the Law on Social Insurance 2014 but have paid social insurance premiums for under full 15 years and do not continue paying voluntary social insurance premiums;

- They settle abroad;

- 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;

- Employees defined at Points dd and e, Clause 1, Article 2 of the Law on Social Insurance 2014 who are demobilized or cease working without being eligible for pension.

3. One-time social insurance benefits

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.

- The lump-sum social insurance allowance as prescribed is exclusive of the State’s monetary support for payment of voluntary social insurance premiums, except the cases where 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

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

- The social insurance benefits for employees covered by voluntary social insurance and currently on pension who settle abroad shall be implemented under Clauses 1 and 2, Article 65 of the Law on Social Insurance 2014.

- The rate of entitlement to one-time 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.

- The rate of entitlement to one-time 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 115/2015/ND-CP.

The calculation of one-time 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.

- When calculating the rate of entitlement to one-time social insurance in case the time of social insurance payment has the odd months, then from 01 to 06 months is calculated as a half year; from 07 to 11 months is calculated as 01 year.

In case of calculation before 01/01/2014, if the time of social insurance payment has the odd months, such odd months shall be transferred to stage of social insurance payment from 01/01/2014 onwards as a basis for calculation of one-time social insurance.

(Clause 2, Article 60 of the Law on Social Insurance 2014 and Clauses 2, 3, 4, Article 19 of Circular 59/2015/TT-BLDTBXH)

Nguyen Ngoc Que Anh

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