In what cases are employees rentitled to a lump-sum social insurance allowance in Vietnam?

In what cases are employees rentitled to a lump-sum social insurance allowance in Vietnam? (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

1. In what cases are employees rentitled to a lump-sum social insurance allowance in Vietnam?

Employees are entitled to a lump-sum social insurance allowance upon their request when falling in one of the following cases:

- 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 this Law 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.

+ Officers and professional army men of the people's army; officers and professional non-commissioned officers and officers and technical non- commissioned officers of the people's public security; and persons engaged in cipher work and enjoying salaries like army men;

+ Non-commissioned officers and soldiers of the people’s army; non- commissioned officers and soldiers on definite-term service in the people’s public security; army, public security and cipher cadets who are entitled to cost- of-living allowance;

(Clause 1, Article 60 of the Law on Social Insurance 2014)

2. How is the lump-sum social insurance based on the number of years of social insurance payment?

The lump-sum social insurance payout shall be calculated based on the number of years of social insurance payment; for each year of payment they are entitled to:

- 1.5-month average monthly salary as the basis for social insurance payment, for the years of payment prior to 2014;

- 2-month average monthly salary as the basis for social insurance payment, for the years of payment since 2014;

- In case the period of social insurance payment (hereinafter referred to as payment period) is under 1 year, the social insurance benefit must equal the paid amount but must not exceed 2-month average monthly salary as the basis for social insurance payment.

 The lump-sum social insurance payout prescribed above is exclusive of the State’s monetary support for payment of voluntary social insurance, except the case of suffeing a fatal disease, such as cancer, poliomyelitis, dropsy cirrhosis, leprosy, serious tuberculosis, HIV infection progressing into AIDS, or other diseases as prescribed by the Ministry of Health;

(Clause 2, Article 8, Decree 115/2015/ND-CP)

3. What must be included in thedossier for enjoyment of lump-sum social insurance allowance? 

Pursuant to Article 109 of the Law on Social Insurance 2014, the dossier for enjoyment of lump-sum social insurance allowance includes:

- The social insurance book.

- The employee’s application for enjoyment of lump-sum social insurance allowance.

- For persons who settle abroad, a copy of the competent agency’s written certification of renunciation of Vietnamese nationality, or a certified or notarized Vietnamese translation of one of the following papers:

+ Passport issued by a foreign country;

+ Visa issued by a competent foreign agency, certifying such country’s permission for entry for overseas residence;

+ Paper certifying such person is carrying out procedures for naturalization in a foreign country; paper certifying residence or permanent residence card or residence card of a term of 5 years or more, issued by a competent foreign agency.

- Extract of the medical record, in the case specified at Point c, Clause 1, Article 60, or Point c, Clause 1, Article 77, of the Law on Social Insurance 2014.

- For employees defined in Article 65, and Clause 5, Article 77, of the Law on Social Insurance 2014, a dossier for enjoyment of lump-sum social insurance allowance must comply with Clauses 2 and 3 of this Article.

Nguyen Ngoc Que Anh

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