Conditions For Receiving A Lump-Sum Social Insurance Payment For Foreign Employees In 2026 (Latest Update)

After a period of working in Vietnam, foreign employees may terminate their labor contracts and prepare to return to their home countries. During their employment in Vietnam, they have contributed to the Social Insurance Fund (SI). Therefore, they may be eligible to receive a one-time social insurance payment before leaving Vietnam.

1. Subjects subject to compulsory social insurance participation

Pursuant to Clause 2, Article 2 of the 2024 Law on Social Insurance:

Foreign employees working in Vietnam are subject to compulsory social insurance if they work under fixed-term labor contracts of at least 12 months with employers in Vietnam, except for cases as otherwise prescribed.

2. Conditions for receiving a lump-sum social insurance payment

According to Clause 2, Article 70 of the 2024 Law on Social Insurance (effective from July 1, 2025):

The above-mentioned employees who have terminated their participation in social insurance and submit a request shall be entitled to a lump-sum social insurance payment if they fall into one of the following cases:

a) Having reached retirement age but not having completed 15 years of social insurance contributions;

b) Suffering from one of the following serious illnesses: cancer, paralysis, decompensated cirrhosis, severe tuberculosis, or AIDS;

c) Having a working capacity reduction of 81% or more, or being classified as a person with extremely severe disabilities;

d) Being eligible for pension benefits but no longer residing in Vietnam;

đ) Terminating the labor contract or when the work permit, practicing certificate, or professional license expires and is not renewed.

Therefore, when foreign employees terminate their labor contracts, no longer wish to work in Vietnam, and want to receive a lump-sum social insurance payment before returning to their home country, they are fully entitled to submit an application for this benefit.

3. Calculation of the lump-sum social insurance benefit

The lump-sum benefit is calculated using the following formula:

Benefit amount = 2 × Average monthly salary for SI contributions × Number of years of SI contributions (after 2014)

Average monthly salary for SI contribution stands for: Average monthly salary used for social insurance contributions

It refers to the average salary on which an employee has based their social insurance contributions throughout their entire participation period.

Average monthly salary for SI contributions =

(Total salary subject to SI contributions × price adjustment coefficient × number of months) / total number of months

The minimum contribution period for determining pension and monthly survivorship benefits is calculated in years, with one year equal to 12 months.

For benefit calculation purposes:

From 1 to 6 additional months is counted as half a year

From 7 to 11 additional months is counted as one full year

4. Example

An employee, Peter, participated in compulsory social insurance from January 2023 to December 2025, with an average monthly salary for SI contributions of VND 30,000,000.

Total contribution period: 3 years

Thus, the lump-sum social insurance benefit he will receive is:

Benefit = 2 × 30,000,000 × 3 = VND 180,000,000

It can be seen that if foreign employees are aware of this benefit, they may receive a substantial financial amount after completing their employment, providing a solid financial foundation as they return home and reunite with their families.

However, many people are still unaware of this important entitlement. Therefore, please feel free to share this information so that more individuals can access and benefit from this policy.

These are TPM’s insights regarding the conditions for receiving a lump-sum social insurance payment for foreign employees.

If you have any questions or require further clarification, please feel free to contact TPM for support and consultation.

 📧 Contact Information

Ms. Do Thi Thu Quynh

Head of Payroll & HR Services

Email: quynh.do@tpm.com.vn

Phone: +84 329 140 249

Legal Reference:

Law on Social Insurance No. 41/2024/QH15 dated June 29, 2024.