One-Time Social Insurance For Foreigners – Financial Solutions When Quitting A Job

Employees who are foreign nationals working in Vietnam shall be required to participate in the compulsory SI program if they obtain work permits, practicing certificates, practicing licenses issued in Vietnam, indefinite-term employment contracts or employment contracts valid for at least one year with employers. This participation in the SI program can lead to benefits such as the possibility of receiving a one-time social insurance payment upon meeting certain conditions, such as the cessation of their employment in Vietnam

Pursuant To Point 6, Clause 2, Article 9 Of Decree No. 143/2018/ND-CP Stipulates

6. Cases of the one-off SI benefit entitlement

If the employee defined in clause 1 Article 2 hereof wishes to receive the one-off payment, he/she shall be entitled to the one-off benefit entitlement provided that:

1. a) He/she reaches the prescribed age as provided in clause 1 of this Article, but has not yet reached the period of 20 years of SI contribution;

1.b) He/she is currently suffering from one of the deadly diseases, such as cancer, polio, cirrhosis with ascites, lapra, serious tuberculosis, HIV infection moved to the phase of AIDS disease and others regulated by the Ministry of Health;

1.c) He/she has fully satisfied retirement pension entitlement requirements as per clause 1 of this Article, but has discontinued residing in Vietnam;

1.d) His/her employment contract is terminated, or his/her labor permit, practicing certificate or practicing license expires without being permitted for renewal.

Therefore, when a foreign employee terminates their labor contract, they no longer need to work in Vietnam and need to receive a one-time Social Insurance benefit before returning home.

Foreign employees can receive their Social Insurance benefit as a single payment from the Social Security Authority

The one-time social insurance benefit for Foreigners is calculated according to the following formula:

The average monthly salary paid for social insurance = (salary paid for social insurance x inflation coefficient x number of months)/total number of months

Pursuant To Clause 2, Article 1 Of Resolution No. 93/2015/Qh13 Resolution On Implementing The One-Time Social Insurance Policy For Employees

2. 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

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

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

Pursuant To Clause 7, Article 85 Of The Law On Social Insurance Stipulates

7. The calculation of periods of social insurance premium payment with odd months for enjoyment of the retirement and survivorship allowance benefits must be as follows

a/ A period of between 1 month to 6 months shall be counted as half year;

b/ A period of between 7 months to 12 months shall be counted as one year.

For example:

Foreign employees participated in the mandatory social insurance program from January 2023 to December 2024 with an average monthly insurance contribution of 30,000,000 VND.

The total duration of social insurance participation of A is 2 years, and He has a plan to enjoy social insurance benefits once they leave the job. 

So, what total amount of one-time social insurance benefits will A receive?

Thus, the one-time social insurance benefits that A will receive is 2 * 30,000,000 * 2 = 120,000,000 VND.

Conclusion

Therefore, foreign workers can take advantage of this regulation to receive benefits from one-time social insurance based on the insurance payment period and average salary when terminating the labor contract in Vietnam.

Above are some basic regulations of one-time social insurance for foreign employees. 

If you need support for one-time social insurance benefits, please contact our experts.

Do Thi Thu Quynh– Head of Payroll and HR services – quynh.do@tpm.com.vn

Legal grounds:

Social Insurance Law No. 58/2014/QH13 dated November 20, 2014

Decree No. 143/2018/ND-CP dated October 15, 2018

TK: One-time social insurance, Foreign workers, Resignation