Are foreign workers eligible for a one-time social insurance payout in Vietnam? This is a common question among foreign employees working in Vietnam when their employment contracts end, their work permits expire, or they plan to return to their home countries.
Under Vietnam’s 2024 Law on Social Insurance, foreign employees who are subject to compulsory social insurance may be eligible for a lump-sum social insurance payout if they meet the conditions prescribed by law.
So, what are the eligibility requirements for a one-time social insurance payout for foreign workers? How is the benefit calculated, and what documents are required? This article provides a detailed overview.
1. Are Foreign Workers Eligible for a One-Time Social Insurance Payout in Vietnam?
Yes. Foreign employees participating in Vietnam’s compulsory social insurance scheme may be eligible for a one-time social insurance payout if they have ceased participating in social insurance and fall under one of the cases specified in Clause 2, Article 70 of Law No. 41/2024/QH15 on Social Insurance.
The 2024 Law on Social Insurance took effect on July 1, 2025, and sets out the applicable rules on compulsory social insurance participation and lump-sum benefits for foreign employees.
Under the applicable regulations, foreign employees may qualify for a one-time social insurance payout in the following circumstances:
- They have reached the statutory retirement age but have not accumulated 15 years of social insurance contributions.
- They are suffering from certain serious illnesses, including cancer, paralysis, decompensated cirrhosis, severe tuberculosis, or AIDS.
- They have a disability-related reduction in working capacity of 81% or more, or are classified as persons with particularly severe disabilities.
- They meet the conditions for receiving a pension but no longer reside in Vietnam.
- Their employment contracts are terminated, or their work permits, practicing certificates, or practicing licenses expire and are not renewed, where the relevant statutory conditions are satisfied.
Therefore, foreign employees do not necessarily need to make social insurance contributions for 20 years before receiving a lump-sum payment. However, they must meet the legal requirements applicable to their particular circumstances.
It is important to note that leaving Vietnam or terminating an employment contract does not automatically entitle a foreign employee to receive a lump-sum social insurance benefit. Eligibility must be established, and the relevant application procedures must be completed.
2. Which Foreign Employees Must Participate in Compulsory Social Insurance in Vietnam?
Before applying for a lump-sum social insurance payout, foreign employees should determine whether they fall within the category of workers required to participate in Vietnam’s compulsory social insurance scheme.
Under Clause 2, Article 2 of the 2024 Law on Social Insurance, foreign employees working in Vietnam are generally subject to compulsory social insurance if they work under a fixed-term employment contract with a term of at least 12 months with an employer in Vietnam, subject to the statutory exceptions.
The exceptions include:
- Employees transferred within an enterprise in accordance with the regulations governing foreign employees working in Vietnam.
- Employees who have reached the statutory retirement age at the time their employment contracts are concluded.
- Cases in which an international treaty to which Vietnam is a party provides otherwise.
Determining whether an employee is subject to compulsory social insurance is essential to identifying their social insurance rights when their employment in Vietnam ends.
3. Eligibility Requirements for a One-Time Social Insurance Payout for Foreign Workers
Under Clause 2, Article 70 of the 2024 Law on Social Insurance, foreign employees covered by Clause 2, Article 2 may apply for a lump-sum social insurance benefit after ceasing participation, provided they fall within one of the legally prescribed circumstances.
3.1. Foreign Employees Who Terminate Their Employment Contracts in Vietnam
This is one of the circumstances most frequently considered by foreign employees.
When an employment contract ends and the employee no longer participates in Vietnam’s social insurance scheme, their eligibility must be assessed based on the employment termination, the status of their work permit, and other relevant legal requirements.
In particular, the law provides for a lump-sum social insurance benefit in cases where a foreign employee’s employment contract is terminated or their work permit, practicing certificate, or practicing license expires without renewal, subject to the applicable requirements.
Employees should prepare documents confirming the termination of their employment and verify their social insurance contribution records before submitting an application.
3.2. Foreign Employees Whose Work Permits Expire and Are Not Renewed
Foreign employees working in Vietnam are generally required to hold a work permit or other relevant authorization, where applicable.
If a work permit expires and is not renewed, the employee may fall within a statutory category eligible for a one-time social insurance payout under the 2024 Law on Social Insurance.
However, the expiry of a work permit should be distinguished from automatic entitlement to a lump-sum benefit. The social insurance authority will review the employee’s circumstances and supporting documents in accordance with applicable regulations.
3.3. Foreign Employees Returning Home and No Longer Residing in Vietnam
Many foreign employees wish to receive their social insurance benefits when their employment in Vietnam ends and they return to their home countries.
Under the law, no longer residing in Vietnam may be a basis for receiving a lump-sum social insurance benefit where the employee has met the conditions for pension entitlement.
In addition, the termination of an employment contract or the expiry of a work permit, practicing certificate, or practicing license without renewal is separately addressed by the law.
Foreign employees should therefore identify the correct legal basis for their applications rather than assuming that departure from Vietnam automatically entitles them to recover all social insurance contributions paid.
3.4. Foreign Employees With Serious Illnesses or Significant Reductions in Working Capacity
Foreign employees may also qualify for a lump-sum social insurance benefit in certain exceptional health-related circumstances prescribed by law.
These include suffering from cancer, paralysis, decompensated cirrhosis, severe tuberculosis, or AIDS; having a reduction in working capacity of at least 81%; or being classified as a person with particularly severe disabilities.
Applicants in these circumstances should prepare medical records, relevant certificates, and other supporting documents required by the competent authorities.
4. How Much Is the One-Time Social Insurance Payout for Foreign Workers?
The amount of a lump-sum social insurance benefit depends on the employee’s contribution period, average monthly salary used as the basis for social insurance contributions, and other applicable legal provisions.
Under the general calculation principles set out in the 2024 Law on Social Insurance, the benefit is calculated according to the number of years of contributions, as follows:
- For contribution periods before 2014: Each year generally corresponds to 1.5 months of the average monthly salary used as the basis for social insurance contributions.
- For contribution periods from 2014 onward: Each year generally corresponds to 2 months of the average monthly salary used as the basis for social insurance contributions.
Special rules apply where the contribution period is less than one year.
Important: These are general calculation principles. The actual amount payable must be determined based on the employee’s contribution records, the periods before and after 2014, applicable rules on rounding contribution periods, and other relevant provisions.
Example of a One-Time Social Insurance Calculation
Suppose a foreign employee contributed to social insurance from 2018 through 2022, representing five years of contributions, with an assumed average monthly contribution salary of VND 30,000,000.
If all five years are calculated at two months of the average monthly salary per year, the estimated lump-sum benefit would be:
5 × 2 × VND 30,000,000 = VND 300,000,000.
This is a simplified illustration only and does not replace the official calculation by the social insurance authority. The actual benefit must be determined based on the employee’s contribution records and the regulations applicable when the application is processed.
5. Required Documents for Foreign Employees Applying for a One-Time Social Insurance Payout
Foreign employees should prepare the required documents in accordance with the applicable regulations and their individual circumstances.
The documents to review and prepare generally include:
- Application for a lump-sum social insurance benefit: The prescribed application form currently required by the social insurance authority.
- Social insurance book or records confirming contribution history: To verify the contribution period and contribution salary.
- Passport or valid identification documents: To verify the employee’s identity.
- Documents proving eligibility: For example, documents relating to employment termination, an expired work permit that has not been renewed, or evidence supporting another qualifying circumstance under the law.
Additional documents may be required depending on the specific circumstances and the requirements of the receiving social insurance authority.
Foreign employees should confirm the official document checklist before submitting their applications to minimize delays caused by incomplete or incorrect paperwork.
6. Procedures for Receiving a One-Time Social Insurance Payout in Vietnam
The application process generally involves the following steps.
Step 1: Check your social insurance contribution records
Review the contribution period, the salary used as the contribution basis, and the status of your social insurance records when your employment ends.
Step 2: Determine your eligibility
Check your circumstances against Clause 2, Article 70 of the 2024 Law on Social Insurance to identify the applicable legal basis for receiving a lump-sum benefit.
Step 3: Prepare the application documents
Complete the prescribed application and gather the documents required to demonstrate eligibility.
Step 4: Submit the application to the competent social insurance authority
Submit the application using an accepted submission method and at the appropriate receiving office, as instructed by the social insurance authority.
If you cannot submit the application in person, check the applicable rules on authorization and the supporting documents required for an authorized representative.
Step 5: Monitor the application status
After receiving a valid application, the social insurance authority will review and process it within the applicable statutory timeframe. Applicants should ensure that their payment information is accurate and follow any notifications issued by the receiving authority.
To avoid errors, foreign employees should carefully check their passport details, contribution history, and the legal basis for employment termination before submitting their applications.
7. Must Foreign Employees Return to Their Home Countries to Receive a Lump-Sum Social Insurance Benefit?
No. Returning to their home countries is not necessarily a requirement in every case involving a lump-sum social insurance payout.
Under Clause 2, Article 70 of the 2024 Law on Social Insurance, foreign employees may qualify for a lump-sum benefit if they fall within one of the statutory categories. These include cases involving the termination of an employment contract or the expiry of a work permit without renewal, subject to the relevant legal requirements.
Eligibility must therefore be assessed based on the employee’s social insurance participation status and the applicable legal grounds, rather than solely on whether the employee has left Vietnam.
Foreign employees should confirm the required documents and available payment arrangements with the competent social insurance authority, taking into account their place of residence, bank account information, and legal status.
8. Important Considerations When Foreign Employees Apply for a Lump-Sum Social Insurance Payout
Foreign employees should consider the following points when applying for a one-time social insurance benefit in Vietnam:
- Resigning does not automatically entitle an employee to a lump-sum payout. The employee must meet one of the statutory eligibility conditions.
- Check your contribution history carefully. Missing or outdated records may affect the calculation of the benefit.
- Prepare documents relevant to your circumstances. Particular attention should be paid to documents proving employment termination or the expiry of a work permit without renewal.
- Distinguish social insurance from health insurance and unemployment insurance. These are separate schemes with different eligibility requirements, benefits, and procedures.
- Check the legislation in force when submitting the application. The required documents and procedures should be verified against the regulations applicable at the time of submission.
Preparing the correct documents and establishing eligibility under the appropriate legal provision can help foreign employees manage their social insurance claims more efficiently.
9. Frequently Asked Questions About One-Time Social Insurance Benefits for Foreign Workers
Can a foreign employee who has contributed to social insurance for one year withdraw their contributions?
Potentially, yes, if the employee is subject to compulsory social insurance, has ceased participating in the scheme, and meets one of the statutory conditions under Clause 2, Article 70 of the 2024 Law on Social Insurance.
Having contributed for one year alone does not automatically establish eligibility.
Can foreign employees receive their social insurance money after leaving their jobs in Vietnam?
They may be eligible for a lump-sum benefit if they fall within a statutory category, such as the termination of an employment contract or the expiry of a work permit without renewal, and satisfy the applicable requirements.
Can foreign employees returning to their home countries receive a one-time social insurance payout?
Potentially, yes. However, the applicable eligibility conditions must be identified. Returning home does not automatically create an entitlement to a lump-sum benefit in every case.
How is the one-time social insurance benefit calculated for foreign employees?
The amount is determined based on the contribution period, average monthly salary used as the basis for social insurance contributions, and other applicable legal rules. The employee’s actual contribution records must be reviewed to calculate the precise amount.
Can foreign employees authorize another person to receive their one-time social insurance benefit?
Authorization must comply with the applicable regulations governing representation, application documents, and identity verification. Employees should confirm the specific requirements with the receiving social insurance authority before proceeding.
10. Conclusion
Are foreign workers eligible for a one-time social insurance payout in Vietnam? Yes, provided they satisfy the conditions prescribed by Vietnamese law.
Under the 2024 Law on Social Insurance, foreign employees who have ceased participating in social insurance and fall within one of the circumstances specified in Clause 2, Article 70 may apply for a lump-sum benefit. Relevant circumstances include the termination of an employment contract or the expiry of a work permit without renewal, certain serious medical conditions, qualifying reductions in working capacity, and specific pension-related circumstances.
To protect their rights, foreign employees should review their contribution history, identify the correct legal basis for their application, and prepare the required documents in accordance with the regulations currently in force.
Legal references:
- Law on Social Insurance No. 41/2024/QH15, particularly Clause 2, Article 2 and Clause 2, Article 70.
- Decree No. 158/2025/ND-CP, providing detailed regulations and guidance on compulsory social insurance under the Law on Social Insurance.
- Applicable guidance, forms, and application procedures issued by the competent social insurance authorities.
Contact us today for professional assistance, guidance on the application procedures, and help preparing the documents tailored to your specific circumstances.
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