In 2024, who can withdraw social insurance at one time?

Cases eligible for one-time social insurance withdrawal in 2024

It is expected that the Law on Social Insurance (amended) will be passed by the National Assembly in mid-2024 and will take effect from July 1, 2025. Therefore, the conditions for employees to receive one-time social insurance (SI) benefits in 2024 will still apply according to current regulations.

Employees can withdraw social insurance at one time when they fall into the following 5 cases:

1. Employees who are old enough to receive pension according to regulations, but have not paid social insurance for 20 years. Female employees who are full-time or part-time workers in communes, wards and towns who participate in social insurance are old enough to receive pension according to regulations, but have not paid social insurance for 15 years and do not continue to participate in voluntary social insurance.

2. Workers go abroad to settle down.

3. The employee is suffering from one of the life-threatening diseases (cancer, paralysis, cirrhosis, leprosy, severe tuberculosis, HIV infection that has progressed to AIDS and other diseases as prescribed by the Ministry of Health).

4. Employees working in military units after being demobilized, discharged, or leaving the job without meeting the conditions for pension. This case includes 2 groups of subjects:

- Officers and professional soldiers of the People's Army; professional officers and non-commissioned officers, officers and technical non-commissioned officers of the People's Public Security; people working in cryptography receive salaries as soldiers.

- Non-commissioned officers and soldiers of the People's Army; non-commissioned officers and soldiers of the People's Police serving for a limited period of time; military, police and cryptographic students currently studying are entitled to living expenses.

5. Employees participating in compulsory social insurance after one year of unemployment, and employees participating in voluntary social insurance after one year of unemployment, but not having paid social insurance for 20 years, upon request, will receive a one-time social insurance payment.

However, according to Vietnam Social Security, withdrawing social insurance at one time affects the long-term, sustainable benefits of employees and negatively impacts the social security system, so employees should consider carefully before deciding.

One-time social insurance benefit level in 2024

According to Clause 2, Article 60 of the 2014 Law on Social Insurance, the one-time social insurance benefit is calculated based on the number of years of social insurance contributions in 2 stages.

For years of social insurance payment before 2014, each year is calculated as 1.5 months of the average monthly salary for social insurance payment.

For years of social insurance payment from 2014 onwards, each year is calculated as 2 months of average monthly salary for social insurance payment.

In case the social insurance payment period is less than one year, the social insurance benefit is equal to the amount paid, the maximum level is equal to 2 months of the average monthly salary for social insurance payment.

If only calculating the contribution and benefit levels, employees who choose to withdraw social insurance at one time will suffer a lot.

Currently, each month, employees pay social insurance to the pension and death fund equal to 8% of the basic salary, employers pay 14%, a total of 22%; each year is 2.64 months of basic salary.

Thus, when withdrawing social insurance at one time, employees lose 1.14 months of salary for each year of social insurance payment before 2014 and lose 0.64 months of salary for each year of social insurance payment from 2014 onwards.

According to Vietnam Social Security, in reality, many people after receiving one-time social insurance want to pay back the money to restore the number of years of social insurance participation to qualify for pension. However, the current law on social insurance does not stipulate this case. That is, if you have received one-time social insurance, the previous payment process will no longer exist. When returning to work, the employee must participate in social insurance again from the beginning. Therefore, employees should consider carefully before deciding to withdraw one-time social insurance.

Minh Hoa (t/h)

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