Can Foreign Employees Withdraw Social Insurance As A Lump Sum?

When terminating an employment contract in Vietnam, many foreign employees are concerned about whether they can receive a refund of their contributed social insurance. This article explains the conditions, benefits, required documents, and important notes for withdrawing social insurance as a lump sum.

1. Legal Basis

The entitlement to a lump-sum social insurance benefit for foreign employees is regulated under:

• Law on Social Insurance 2014
• Decree No. 143/2018/ND-CP
  

Accordingly, foreign employees subject to compulsory social insurance in Vietnam are eligible for a lump-sum benefit if they meet the prescribed conditions.

2. Conditions for Lump-Sum Withdrawal

Foreign employees are entitled to a lump-sum payment when:

• The labor contract has been terminated;
• They request the lump-sum payment;
• And fall into one of the following cases:
  • The labor contract expires and is not renewed;
  • The work permit or practicing license expires;
  • They no longer legally reside in Vietnam.
    

⚠️ Note: Unlike Vietnamese employees, foreign workers are not required to wait for one year after resignation to apply.

3. Benefit Level

The benefit is calculated based on the contribution period and the average monthly salary used for social insurance contributions.

Specifically:

• Each year of contribution (from 2014 onward): entitled to 2 months of the average salary.
• If the contribution period is less than one year, the benefit is calculated proportionally.
  

4. Required Documents

Applicants need to prepare:

• Application form for lump-sum social insurance;
• Social insurance book (with confirmed contribution record);
• Copy of passport;
• Documents proving termination of employment;
• Documents proving no longer legally residing in Vietnam (if any).
  

5. Payment Method

Employees may choose:

• Bank transfer to a Vietnamese bank account (recommended);
• Or direct cash payment (now less common).
  

⚠️ Important note on bank accounts:

• Must be a VND account opened in Vietnam;
• Must remain active and not be blocked;
• Ensure accessibility after leaving Vietnam.
  

In practice, many employees leave Vietnam and later face delays because their bank accounts are closed or inactive.

6. Important Notes on Documents

6.1. Social insurance record must be finalized
The employer must complete the termination and confirmation procedures. Otherwise, the application will not be accepted.

6.2. Consistency of personal information
Full name, date of birth, and nationality must match across all documents.

6.3. Complete termination documents
Resignation decision, contract termination, or contract expiry documents are required.

6.4. In case of leaving Vietnam
Employees may authorize another person to receive the payment (authorization must be legalized if signed abroad).

7. Processing Time

The processing time is typically 5–10 working days after submitting a complete and valid application.

✅ Conclusion

Foreign employees in Vietnam can fully withdraw social insurance as a lump sum if they meet the required conditions. However, it is important to prepare complete documents, finalize the insurance record, and ensure a valid bank account to avoid delays.

Ngan Ho