How to calculate one-time social insurance & instructions for social insurance withdrawal procedures

What is one-time social insurance? Learn: formula – how to calculate one-time social insurance, conditions for receiving one-time social insurance, documents and procedures for withdrawing one-time social insurance…

I. What is one-time social insurance?

➤ What is one-time social insurance?

Social insurance (SI) is a subsidy to partially compensate employees for their income when they are sick, pregnant, have a work accident, occupational disease, reach retirement age or die based on their SI contributions. 

Therefore, the one-time social insurance regime is only one of the benefits that participants are entitled to when meeting the conditions after a period of social insurance payment.

➤ Should I receive social insurance at one time?

Receiving social insurance at one time also has advantages and disadvantages when receiving. From the following advantages and disadvantages, you should consider whether to receive social insurance at one time or not.

• About the advantages:
  • Paid in full at once;
  • Have a large sum of money to use for urgent spending needs when needed;
  • Workers switch to freelance work or do not need to pay social insurance.
• About limitations:
  • No guarantee of monthly income in retirement;
  • Not entitled to health insurance benefits;
  • The actual one-time withdrawal amount of social insurance will be much lower than the amount paid into the social insurance fund;
  • When a person dies, the family does not receive funeral benefits or monthly benefits;
  • When withdrawing social insurance benefits in one lump sum, if you want to pay again later, the previous period will not be counted.

II. Conditions for receiving one-time social insurance benefits

Pursuant to Point a and b, Clause 1, Article 8, Decree 115/2015/ND-CP and Article 60, Law on Social Insurance of Vietnam No. 58/2014/QH13, the cases eligible for receiving one-time social insurance payment include:

• Go abroad to settle;
• Old enough to receive pension but have not paid social insurance for 20 years;
• Police and soldiers who are demobilized, discharged, or quit their jobs but are not eligible for pension;
• Reaching retirement age but not having paid social insurance for 15 years and not continuing to participate in voluntary social insurance (for female workers working in communes, wards and towns);
• People suffering from life-threatening diseases such as cancer, paralysis, cirrhosis, leprosy, severe tuberculosis, HIV that has progressed to AIDS and other diseases as prescribed by the Ministry of Health;
• People participating in compulsory social insurance after 1 year of unemployment or participating in voluntary social insurance after 1 year of not continuing to pay but not having paid for 20 years (Article 1 of Resolution 93/2015/QH13).

III. Instructions on how to calculate one-time social insurance

One-time social insurance benefits are paid based on the employee’s time participating in social insurance and the average monthly salary (MBQTL) for social insurance contributions (based on Clause 4, Article 19, Circular 59/2015/TT-BLDTBXH).

➤ How to calculate one-time social insurance benefits

Note:

➧ In case of less than 1 year of payment, it will be calculated as 22% of the monthly salary for which social insurance has been paid, the maximum level is equal to 02 months of average salary.

For example:

Lan paid social insurance from February 2021 to November 2021, less than 1 year with a salary of 6,000,000 VND. Thus, the one-time insurance is calculated as follows:

• Clause 2, Article 60 of the 2014 Law on Social Insurance stipulates that in cases where the period of social insurance payment is less than 1 year: The level of social insurance benefit is equal to the amount paid, up to 2 months of the average monthly salary for social insurance payment;
• At the same time, according to Clause 2, Article 19 of Circular 59/2015/TT-BLDTBXH, for employees who have paid social insurance for less than 1 year: The one-time social insurance benefit is calculated at 22% of the monthly salary for which social insurance has been paid, the maximum level is equal to 2 months of the average monthly salary for which social insurance has been paid;
• Lan’s average salary for social insurance is 6,000,000 VND. 

➝ Lan’s one-time social insurance benefit calculated according to regulations = 22% x (6,000,000 x 10) = 13,200,000 VND > 2 x 6,000,000 VND = 12,000,000 VND.

Thus, Lan’s one-time social insurance benefit is 12,000,000 VND.

➧ Individual social insurance participation period: 

• From 1 to 6 months is counted as ½ year;
• From 7 to 11 months is counted as 1 year.

For example:

If the social insurance payment period is 2 years and 3 months, then the social insurance participation period is 2.5 years. If the social insurance payment period is 3 years and 9 months, then the social insurance participation period is 4 years.

➤ How to calculate average salary

➤ Adjustment level of monthly income for which social insurance has been paid

The adjustment level of salary and monthly income for which social insurance has been paid is stipulated in Circular 36/2021/TT-BLDTBXH as follows: 

Price index table for calculating social insurance up to 2022:

 

Example 1:

Ms. Ha, 40 years old, participated in social insurance from January 2013 to August 2020 as follows:

• From January 2013 to May 2016 salary 4,500,000 VND;
• From August 2016 to October 2019, the salary is 5,000,000 VND;
• From November 2019 to August 2020 salary is 5,500,000 VND.

Ms. Ha has participated in social insurance for 7 years and 6 months (equivalent to 90 months), her average salary will be calculated as follows: 

MLBQ = (12 x 1.25 x 4,500,000 + 12 x 1.2 x 4,500,000 + 12 x 1.19 x 4,500,000 + 5 x 1.16 x 4,500,000 + 5 x 1.16 x 5,000,000 + 12 x 1.12 x 5,000,000 + 22 x 1.08 x 5,000,000 + 2 x 1.05 x 5,500,000 + 8 x 1.02 x 5,500,000) : 90 = 5,489,889 VND/month.

Ms. Ha’s time participating in social insurance before 2014 was 1 year;

Social insurance participation period from 2014 is 6.5 years.

Thus, Ms. Ha’s one-time social insurance benefit is (1.5 x 1 + 6.5 x 2) x 5,489,889 = 79,603,391 VND.

Example 2:

Ms. Linh participated in social insurance from May 2020 to December 2021 with a salary of 8,000,000 VND. The period of participation in social insurance is 1 year and 8 months.

➝ Average salary is = (8 x 1.02 x 8,000,000 + 12 x 1 x 8,000,000) : 20 = 8,064,000 VND.

Because the time of participating in social insurance is 8 months, it will be counted as 1 year. Thus, the one-time social insurance benefit is 2 x 2 x 8,064,000 = 32,256,000 VND. 

IV. Procedures for receiving one-time social insurance

1. One-time social insurance withdrawal application

Note:

For one-time social insurance withdrawal application, you need to bring your household registration book/temporary residence papers and ID card/CCCD (original).

2. How to submit application for one-time social insurance benefit

➤ Agency receiving one-time social insurance withdrawal application

Social Insurance Agency of the district, city, province where the individual submits the residence application (according to the permanent address on the household registration book or temporary residence registration place).

➤ Application form

➧ Method 1: Electronic transaction:

One-time social insurance beneficiaries register to receive the verification code and submit electronic documents via the website of the Vietnam Social Security Electronic Information Portal according to the following steps: 

• Step 1:  Log in with your personal account information provided by the Social Security agency on the Vietnam Social Security Public Service Portal;

• Step 2 : Select file declaration; 

• Step 3:  Choose the Social Insurance agency to receive and declare the procedure for receiving one-time Social Insurance;

• Step 4: Choose the appropriate profile with the conditions for receiving one-time social insurance benefits;

• Step 5: Fill in the information according to the form;

• Step 6: Download the attached files corresponding to each of your benefit cases;

• Step 7: Enter the OTP code sent to your phone by the Social Insurance;
• Step 8: Check again by selecting “Declaration history” and look up the application processing status via the “Declaration history” tab.

After successful confirmation, the system will send a notification that the application has been successfully submitted and at the same time, send a message to the registered phone number.

➧ Method 2: Public postal services are provided at the request of the state to serve specific tasks;

➧ Method 3: Employees submit their application directly to the Social Insurance agency.

3. Place to submit application for one-time social insurance benefit 

To complete the procedure for withdrawing social insurance at one time, the beneficiary needs to prepare a complete set of documents as prescribed in Section 1. The employee will submit the social insurance book to the district/county level social insurance agency or provincial social insurance agency where the employee has a household registration or temporary residence book (based on the provisions in Clause 2, Article 1 and Article 20 of Decision 636/QD-BHXH).

4. Time to pay social insurance results one time

According to regulations, the time limit for settling one-time social insurance is within 10 days from the date of receiving complete documents. If the employee has not received the money in the above case, the employee should bring the previous appointment slip to the social insurance agency to check the process of processing the documents, ensuring timely settlement of the employee’s benefits.

In case of non-resolve, the Social Insurance agency is responsible for responding in writing and stating the reason.

5. How to receive social insurance one time

Employees receive the results of one-time social insurance settlement including:

• The dossier includes relevant documents in the form registered in the dossier;
• One-time social insurance benefit.

6. Method of receiving social insurance payment at one time

In case the beneficiary registers to pay the benefit via ATM, the Social Insurance agency will transfer money to the registered account number;

In case the beneficiary registers to receive cash directly at the Social Insurance agency, when coming to the Social Insurance agency, you need to bring the appointment paper and ID card to receive support to receive the money.

V. Some frequently asked questions about one-time social insurance withdrawal