Vietnam: 04 cases immediately receive lump-sum social insurance allowance

Particularly, pursuant to Article 60 of the Law on Social Insurance 2014 of Vietnam, employees defined in Clause 1, Article 2 of this Law are entitled to a lump-sum social insurance allowance upon their request when falling in one of the following cases:

(1) They have reached the retirement age specified in Clause 1, 2 or 4, Article 54 of this Law 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;

(2) They settle abroad;

(3) 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;

(4) Employees defined at Points dd and e, Clause 1, Article 2 of this Law who are demobilized or cease working without being eligible for pension, particularly:

- 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;

Pursuant to Clause 1 Article 2 of the Law on Social Insurance 2014 of Vietnam, employees being Vietnamese citizens shall be covered by compulsory social insurance, including:

a/ Persons working under indefinite-term labor contracts, definite-term labor contracts, seasonal labor contracts or contracts for given jobs with a term of between full 3 months and under 12 months, including also labor contracts signed between employers and at-law representatives of persons aged under 15 years in accordance with the labor law;

b/ Persons working under labor contracts with a term of between full 1 month and under 3 months;

c/ Cadres, civil servants and public employees;

d/ Defense workers, public security workers and persons doing other jobs in cipher organizations;

dd/ 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;

e/ 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;

g/ Vietnamese guest workers defined in the Law on Vietnamese Guest Workers;

h/ Salaried managers of enterprises and cooperatives;

i/ Part-time staffs in communes, wards and townships.

The lump-sum social insurance benefits

Pursuant to Clause 2 Article 1 Resolution No. 93/2015/QH13, the lump-sum social insurance benefits for persons participating in compulsory social insurance shall be calculated based on the number of years of social insurance premium payment with each year equaling:

+ 1.5 times the average monthly salary on which social insurance premiums are based, for the period prior to 2014;

+ 2 times the average monthly salary on which social insurance premiums are based, for the period from 2014 onward.

+ In case the period of payment of social insurance premiums is less than one year, the social insurance allowance shall be equal to the paid amount, and the maximum level is equal to 02 months of the average monthly salary on which social insurance premiums are based.

Bao Ngoc

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