Can foreigners withdraw one-time social insurance? How is the one-time social insurance payment of foreigners calculated? Let us learn about this topic with LSX law firm as follow:
Participating in social insurance will help employees have the opportunity to enjoy a pension when they are old. Still, many workers choose to withdraw their social insurance once after they retire. So can foreigners request to withdraw social insurance once?
Can foreign workers who quit their jobs get one-time social insurance?
Decree 143/2018/ND-CP guiding the compulsory social insurance for foreign workers has regulations on the enjoyment of one-time social insurance in Article 9 of this Decree. However, this content has not been; applied at present because Clause 2, Article 17 of this Decree clearly states:
Article 17. Effect
2. The regimes specified in Articles 9 and 10 of this Decree take effect from January 1, 2022.
Accordingly, the settlement of one-time social insurance benefits for foreigners will only be; implemented from 2022. Therefore, at present, foreign workers cannot claim one-time social insurance benefits.
With this regulation, many foreign workers will ask why the company has paid social insurance, but they cannot withdraw it once but have to wait until 2022?
In fact, at present, employers only pay social insurance contributions for foreign workers to the sickness and maternity fund and the labor accident and occupational disease fund but have not yet settled into the retirement and survivorship fund. Meanwhile, one-time social insurance is one of the benefits under the retirement and survivorship regime.
Therefore, up to the present time, foreign workers have not received a lump-sum social insurance benefit.
What conditions do foreigners need to withdraw one-time social insurance?
According to Clause 6, Article 9 of Decree 143/2018/ND-CP, foreign workers participating in social insurance; entitled to receive one-time social insurance upon request if they fall into one of the following cases:
– Having reached the retirement age but have not yet paid full 20 years of social insurance contributions.
– Having a life-threatening disease such as cancer, polio, cirrhosis of the liver ascites, leprosy, severe tuberculosis, HIV infection that has turned to AIDS, and other diseases as prescribed by the Ministry of Health.
– Eligible for pension but do not continue to reside in Vietnam.
– The labor contract is; terminated, or the work permit, practice certificate, or practice license expires without being renewed.
So, instead of having to wait 1 year from the time of resignation like Vietnamese workers; foreign workers only need to terminate the labor contract and will be; entitled to one-time social insurance benefits upon request.
The time of calculating the one-time social insurance allowance of foreign workers is the time; stated in the decision of the social insurance agency.
In case the foreign worker leaves his/her job but is not eligible for pension or has not yet enjoyed the lump-sum social insurance payment; the period of payment of social insurance premiums of the foreign worker will be; preserved.
How is the one-time social insurance payment of foreigners calculated?
Clause 7, Article 9 of Decree 143/2018/ND-CP has guided on the rate of one-time social insurance benefits as follows:
The lump-sum social insurance allowance shall comply with the provisions of Point b, Clause 2, Article 60 of the Law on Social Insurance.
Accordingly, the one-time social insurance payment of foreign workers is; determined according to 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 social insurance payment
Inside:
– Average salary paid for social insurance:
Average salary paid for social insurance = Total salary paid for social insurance of each year x Salary adjustment coefficient : Total number of months of paying social insurance premium
– Number of years of payment of social insurance: This period is as follows:
+ There are odd months from 01 – 06 months: Round ½ year.
+ There are odd months from 07 to 11 months: 1 year is counted.
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