THE LATEST GUIDE ON HOW TO CALCULATE ONE-TIME SOCIAL INSURANCE BENEFITS FOR FOREIGNERS

Starting from January 1, 2022, foreign employees working in Vietnam who participate in compulsory social insurance are entitled to receive a one-time social insurance benefit when they terminate their employment and leave Vietnam.

Eligible recipients of one-time social insurance benefits

Foreign employees are eligible to withdraw their social insurance in a lump sum if they fall into one of the following categories:

• They have reached the retirement age but have contributed to social insurance for less than 15 years;
• They are suffering from one of the following diseases: cancer, poliomyelitis, decompensated cirrhosis, severe tuberculosis, or AIDS;
• They have a working capacity reduction of 81% or more, or are classified as persons with especially severe disabilities;
• They meet the retirement conditions but no longer reside in Vietnam;
• Their labor contract, work permit, practice certificate, or practicing license expires and is not renewed.

How to calculate the one-time social insurance payment

The lump-sum social insurance benefit is calculated based on the total number of years of contribution, as follows:

• For each year of contribution from 2014 onward → equal to 2 months of the average monthly salary on which social insurance contributions were based.

👉 Formula:
One-time SI amount = 2 × Average monthly salary used for SI contributions × Number of years of contribution

Where:

• Average monthly salary = (Total monthly salaries contributed to SI × Salary adjustment coefficient) ÷ Total number of contribution months.
• Number of contribution years is rounded as follows:
  • 01–06 months: rounded to half a year.
  • 07–11 months: rounded to one full year.

👉 If the total contribution period is less than one year, the one-time benefit equals the total contributed amount, but not exceeding two months of the average monthly salary.

Example:

• Mr. Robert (foreigner) worked in Vietnam from 01/01/2022 to 31/12/2024 (3 years).
• His average monthly salary used for SI: VND 40,000,000.

Calculation:
→ One-time SI amount = 40,000,000 × 3 = VND 120,000,000.

When Mr. Robert resigns and returns to his home country, he will receive approximately VND 120 million as a one-time social insurance payout.

Method of receiving payment

• The one-time social insurance benefit is transferred to a Vietnamese bank account opened under the foreign employee’s name.
• If the employee has already left Vietnam, they may authorize another person to submit the application and receive the payment on their behalf.

Important notes

• Complete the social insurance book finalization before leaving Vietnam to avoid delays or additional procedures later.
• Keep important documents carefully, such as: labor contract, social insurance book, authorization letter (if applicable).
• Be aware that actual received amounts may be affected by future changes to tax or social insurance policies.
• Processing time for one-time social insurance benefits is typically 10–15 working days.

Conclusion

Calculating the one-time social insurance payment for foreigners in Vietnam is not complicated, but it’s important to understand the formula clearly. Foreign employees should also prepare the necessary documents in advance to ensure they receive their full entitlements after working and contributing to Vietnam’s compulsory social insurance system.

 If you need assistance in claiming your one-time social insurance benefit, please contact TPM’s specialists for support:

Ms. Đỗ Thị Thu Quỳnh
Head of HR & Payroll Services Department

quynh.do@tpm.com.vn

References:

• Social Insurance Law 2024, effective from July 1, 2025

Decree No. 158/2025/NĐ-CP, effective from July 1, 2025