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1. Conditions for lump-sum social insurance allowance for foreigners
Pursuant to clause 2 Article 70 of the Law on Social Insurance 2024 (LSI 2024), employees who are foreign nationals working in Vietnam, participating in compulsory social insurance if they work under employment contracts with terms of at least 12 months, have stopped participating in SI and make a request, he/she shall be eligible for lump-sum SI allowance if he/she satisfies one of the following conditions:
- He/she reaches the retirement age but has paid social insurance for less than 15 years;
- He/she has one of the following diseases: cancer, polio, decompensated cirrhosis, severe tuberculosis, AIDS;
- He/she has ≥ 81% work capacity reduction, or severe disability;
- He/she is eligible for pension as per regulations but no longer resides in Vietnam;
- His/her employment contract is terminated; or his/her work permit, practicing certificate, practicing license is expired and not renewed.
2. Lump-sum social insurance allowance for foreigners
- According to clause 3 Article 70 of the LSI 2024 stipulating on the lump-sum SI allowance, the lump-sum SI allowance shall be calculated according to the number of years of payment and the salary on which SI premiums are paid, excluding the state subsidies on voluntary SI, the lump-sum SI allowance for each year shall be:
- 1,5 times the average monthly salary on which social insurance premiums are paid before 2014. If social insurance is paid both before and after 2014 and there is an incomplete year before 2014, it will be aggregated with the social insurance payment period from 2014 onwards to calculate lump-sum social insurance allowance.
For example: Mr. David, a British national, works in Vietnam and participates in compulsory SI, is eligible for the lump-sum SI allowance upon employment contract’s termination and returning to his country. Mr. David has 1 year and 3 months of SI contribution period before 2014, and 2 years and 4 months of SI contribution period from 2014 onwards, with the average monthly salary on which SI premiums are paid of VND 10,000,000.
Regarding Mr. David’s case, the term before 2014 has 03 additional months. Accordingly, these 03 additional months are carried forward to the period from 2014 onwards, resulting in a total SI contribution period of 2 years and 8 months for the period from 2014 onwards. Since the additional 08 months fall within the 07 – 11 months range, they are rounded up to 1 full year. Therefore, the total SI contribution period from 2014 onwards is 03 years.
The lump-sum SI allowance of Mr. David shall be calculated as follows:
Allowance = (1,5 x 10,000,000 x 1) + (2 x 10,000,000 x 3) = VND 75,000,000
Therefore, Mr. David receives the lump-sum SI allowance of VND 75,000,000.
- 02 times the average monthly salary on which social insurance premiums are paid after 2014.
Example: Mrs. Helen, an American national, works in Vietnam and participates in compulsory SI, is eligible for the lump-sum SI allowance due to cancer diseases and must return to her country for curement. Mrs. Helen has 12 years and 03 months SI contributions after 2013 with the average monthly salary on which SI premiums are paid is VND 25,000,000.
The SI duration from 2014 above of Mrs. Helen has 03 additional months falling within the 01 – 06 months range, so it shall be calculated as 06 months. The total SI contribution of Mrs. Helen from 2014 above is 12 years 06 months.
The lump-sum SI allowance of Mrs. Helen shall be calculated as follows:
Allowance = 2 x 25,000,000 x 12,5 = VND 625,000,000
Therefore, Mrs. Helen receives the lump-sum SI allowance of VND 625,000,000.
If the social insurance payment period is shorter than one year, the lump-sum SI allowance shall be equal to the paid amount (8% of the salary on which SI premiums are paid) but not exceeding 02 times the average monthly salary on which SI premiums are paid.
Example: Mr. John, a French specialist, works in Vietnam and participates in compulsory SI with the base salary of VND 50,000,000 per month, he participates in compulsory SI for 04 months in Vietnam.
The amount Mr. John has paid into SI funds = 8% x 50,000,000 x 4 = VND 16,000,000
The maximum of average monthly salary = 2 x 50,000,000 = VND 100,000,000
Therefore, the SI allowance of Mr. John shall be VND 16,000,000, equal to the total amount he has paid.
If foreign employee’s contract is terminated; or his/her work permit, practicing certificate, practicing license is expired and not renewed, he/she is eligible for both pensions and lump-sum SI allowance, the foreign employee may choose between receiving month pensions or lump-sum SI allowance.
3. Application for lump-sum SI allowance
Article 78 of the Law on SI 2024 stipulating the application for lump-sum SI allowance includes:
- The SI book.
- The foreign employee’s application form for lump-sum SI allowance: Form 14-HSB, attached to Decision No. 313/QD-BHXH.
- Copy of the medical record summary or hospital discharge note (for cases of cancer, polio, decompensated cirrhosis, severe tuberculosis, AIDS).
- The work capacity reduction assessment record issued by the Medical Examination Council or a copy of the confirmation of severe disability (for cases of work capacity reduction from 81% above, severe disability).
- Authorized letter (in case of authorization to other individuals): Form 13-HSB, attached to Decision No. 313/QD-BHXH.
4. Procedures for application for lump-sum SI allowance
Step 1: Preparation and submission of dossier
- The foreign employee shall prepare a dossier mentioned in section 3 and submit to the SI authority through one of the following methods:
- Directly at the SI authority or leverage Public Administration Service Center (if any).
- Online.
- Postal service.
Step 2: Receipt and approval of dossier
The SI authority, within 07 days from the date of fully receipt of dossier in accordance with the regulations, is responsible for handling and resolving the application for lump-sum SI allowance of the foreign employee. In case of rejection, a written response and explanation must be provided.
Step 3: Receiving result
The foreign employee shall receive results including Decision on the lump-sum SI allowance, SI contribution record, and the amount of lump-sum SI allowance. Where, the related documents are received in accordance with the dossier receive method registration. And the allowance shall be granted through an individual's account or by cash in the SI authority.
Note: In case of authorization to other individuals for receiving, it is compulsory to perform authorization procedures for receiving lump-sum SI allowance on others’ behalf according to the applicable law. For more information and details, please contact FDVN for consultancy!

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