Lump-sum Social Insurance refund for expats in Vietnam

What is the lump sum social insurance refund?

Under Vietnam's Social Insurance framework, expats working in Vietnam who meet the prescribed conditions are required to participate in the compulsory social insurance scheme. Contributions made through monthly employee deductions and employer contributions are allocated to three funds:

• Retirement & Survivorship Fund
• Sickness & Maternity Fund
• Occupational Accident & Disease Fund

In certain circumstances, expats may be entitled to receive a one-off lump sum payout of contributions made to the Retirement & Survivorship Fund. This benefit is commonly referred to as a Lump Sum Social Insurance Refund.

Who may be eligible for the lump sum social insurance refund?

Under the Law on Social Insurance 2024, foreign employees may be entitled to a Lump Sum Social Insurance Refund if they fall into one of the following categories:

• Have reached retirement age but do not qualify for a pension in Vietnam
• Are pension eligible under the regulations but no longer reside in Vietnam
• Suffer from serious illnesses or significant work capacity reduction as prescribed by law
• Have terminated employment, or whose work permit or professional/practicing license has expired and is not renewed

How much can be claimed?

The Lump Sum Social Insurance benefit is generally calculated based on the total contribution period and the average contributable salary:

Entitled Amount = 2 * Average Contributable Salary * Number of Years of Contribution

Where the total contribution period is less than one year, the refundable amount equals the actual contributions made, capped at two times the average contributable salary.

What documents are required?

While requirements may vary in practice, the following documents are typically required to support a Lump Sum Social Insurance Refund claim:

• Social Insurance Book
• Application Form
• Passport
• Work Permit
• Visa
• Temporary Residence Card

Depending on the specific circumstances of each case, the Social Insurance Authority may request additional supporting documentation.

Claim process & expected timeline

Applicants are required to attend the Social Insurance Department in person to complete the claim submission. Once all required documents are submitted and eligibility is confirmed, processing typically takes 7-10 working days. However, timelines may vary depending on administrative procedures and the specific circumstances of each case.

How we can help?

Our professionals provide comprehensive, end to end advisory services for lump sum Social Insurance refund claims. Learn more about how our Outsourcing and Tax services can support you, contact our team to discuss your specific situation and secure this entitlement.