28/05/2022
How is the One-Time Social Insurance Payment for foreign workers calculated?
Clause 7 Article 9 of Decree 143/2018/ND-CP provides guidance on the rate of the one-time Social Insurance benefits and accordingly, the one-time Social Insurance payment of foreign employees is determined based on the following formula:
One-time Social Insurance payment = 2 x Average monthly salary on which Social Insurance premiums are based x Number of years of payment of Social Insurance contributions.
The yearly period of Social Insurance premiums payment is rounded as follows:
Where there are odd months from 1 – 6 months: the period is rounded up to ½ year.
Where there are odd months from 7 – 11 months, 1 year is counted.
Application process for One-Time Social Insurance Payment:
Within 10 days from the date of contract termination, or work permit, practicing certificate, practicing license expiry, foreign employees who will not continue their contract or renewing the license, are able to submit a dossier to apply for the One-Time Social Insurance Payment.
In maximum 5 working days after receiving the dossier requirements, the Social Insurance Department will settle the procedures and employees will receive settlement results, including:
Relevant documents (directly at the Social Insurance department or through the public postal service or via electronic transactions)
Subsidy paid directly at the social insurance agency, through the public postal service or through a personal bank account.
*In case the foreign employee authorises another person to receive the payment on their behalf, they are required to comply with the procedure for “authorization to receive social insurance and unemployment benefits” and provide the original authorization contract as prescribed by law.
If you need any assistance with these or any other matters relevant for international investors in Vietnam, our experts are ready to work with your company to ensure you understand how the above will apply to your specific situation in Vietnam.
Contact our teams for expert support and further information on managing labour and HR compliance in Vietnam: +84 987747141 Ms. Selena
