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VIETNAM
SOCIAL SECURITY
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SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom – Happiness
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No. 1880/BHXH-CSXH
Re: payout of social insurance benefits to
employees at employers that have not fully paid social insurance premiums
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Hanoi,
June 21, 2023
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To:
Social security agencies of provinces and centrally affiliated cities
On September 6, 2021, Vietnam
Social Security issued Official Dispatch No. 2802/BHXH-CSXH on guidance on the
social insurance for employees who have worked for bankrupt employers that have
not yet fully paid social insurance premiums. This guidance covers employees
who have met all conditions, including conditions regarding the confirmed
period of payment to the social insurance fund (excluding unpaid periods).
However, there is no guidance from competent authorities for employees who have
worked at other employers that have not yet paid enough social insurance
premiums.
Based on the opinion of the
Ministry of Labor, War Invalids and Social Affairs in Official Dispatch No.
2591/LDTBXH-BHXH dated August 9, 2021 and number 1025/LDTBXH-BHXH dated March
23, 2023, the consolidated guidance for social security agencies of provinces
and centrally affiliated cities, Vietnam Social Security has issued a new
guidance on social insurance for employees at employers that have not fully
paid social insurance premiums. The new guidance includes the following:
I. Employers that have not fully
paid social insurance premiums include:
- Employers that are in bankruptcy
proceedings;
- Employers that have had the
bankruptcy decision of the Court;
- Employers that no longer operate at
the registered address;
- Employers that have no legal
representative.
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1. Entities: Employees at employers
who have not fully paid social insurance premiums as mentioned in Section I of
this Official Dispatch.
2. Confirmation of the time of
participation in the social insurance book for employees to serve as a basis
for payout of social insurance benefits:
Comply with Point 3.2, Clause 3,
Article 46 of Decision No. 595/QD-BHXH dated April 14, 2017 of Vietnam Social
Security, amended at Clause 72, Article 1 of Decision No. 505/QD-BHXH dated
March 27, 2020 of Vietnam Social Security: Confirming up-to-date time of
payment of social insurance, unemployment insurance (UI), occupational accident
and occupational disease insurance premiums, in the social insurance book.
3. Voluntary payment of lump-sum
social insurance premiums for missing periods:
3.1. Entities: Employees
specified in Item b, Point 2.1, Clause 2, Section III of this Official
Dispatch.
3.2. Amount: According to Clauses 1
and 4, Article 10 of Decree No. 134/2015/ND-CP dated December 29, 2015 of the
Government; in which, the employee can choose their income as the basis for
paying voluntary social insurance premiums as per the law.
4. Procedures for documentation of
and procedures for confirmation of period of participation in social insurance
for employees at the employers who have not fully paid social insurance
premiums; the collection of social insurance premiums for employees specified
in Item b, Point 2.1, Clause 2, Section III of this Official Dispatch shall
comply with the process of collecting social insurance premiums, health
insurance (HI), unemployment insurance (UI), and occupational accident and
occupational disease insurance; management of social insurance books and health
insurance cards issued together with Decision No. 595/QD-BHXH dated April 14,
2017 of Vietnam Social Security, which was amended in Decision No. 505/QD-BHXH
dated March 27, 2020 and No. 490/QD-BHXH dated 28/3/2023 of Vietnam Social
Security.
5. Other financial sources to pay
the unpaid social insurance premiums: This is the amount not paid by the
employee or his/her family/relative.
III. Payout
of social insurance benefits for employees
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a) The social security agency shall
pay out the employee's benefits related to sickness, maternity, convalescence,
and health rehabilitation based on their actual period of payment of social
insurance premiums.
b) In case of childbirth, child
adoption, or surrogacy: The employee has paid social insurance premiums
to the sickness and maternity fund (excluding unpaid periods) for 6 months or
more, under Clause 2, Article 31 of the Law on Social Insurance 2014, Clause 2,
Article 9 of Circular No. 59/2015/TT-BLDTBXH dated December 29, 2015 of the
Ministry of Labor, War Invalids and Social Affairs, Clause 5, Article 1 of
Circular No. No. 06/2021/TT-BLDTBXH dated 07/07/2021 of the Ministry of Labor,
War Invalids and Social Affairs, or 3 months or more as prescribed in Clause 3,
Article 31 of Law on Social Insurance 2014, if there are grounds for
determination that the employee has not been paid the benefit, the social
security agency shall pay out the maternity benefit according to regulations at
the time the employee gives birth, adopts a child, or claims motherhood in
surrogacy.
c) When the unpaid social insurance
premium is covered by other employer or other financial source and changes the
benefit amount, the benefit amount shall be adjusted according to the relevant
policy (at the time the employee is eligible for the benefit) for additional
payment.
2. Retirement
benefit
2.1. The social security agency
shall provide pensions in the following cases:
a) Employees who reach the
retirement age and have actually paid social insurance premiums for at least
full 20 years (excluding unpaid periods) shall be entitled to a pension benefit
according to the relevant policy in effect at the time of eligibility for
pension.
When unpaid social insurance
premiums have been covered by the employer or other financial source, the
period of payment of social insurance premiums (if any) will be added to adjust
the pension amount which has been paid out according to the relevant policy so
far. The difference in benefits will then be paid to the employee from the
mentioned time.
b) Employees who reach the
retirement age and have actual period of payment of social insurance premiums
of 10 years to under 20 years (excluding unpaid periods) and wish to pay
lump-sum voluntary social insurance premiums for the missing periods shall be
entitled to monthly pension; the pension receipt time shall be conformable with
Clause 2, Article 5 of Circular No. 01/2016/TT-BLDTBXH dated February 18, 2016 of
the Ministry of Labor, War Invalids and Social Affairs.
When unpaid social insurance
premiums have been covered by the employer or other financial source, the
period of payment of social insurance premiums (if any) will be added to adjust
the pension amount according to the relevant policy in effect at the time when
the previous pension was paid out. The difference in benefits will then be paid
to the employee from the mentioned time (not refunding the paid voluntary
social insurance premiums to be consistent with the guidance in Official
Dispatch No. 276/LDTBXH-BHXH dated February 6, 2023 of the Ministry of Labor,
War Invalids and Social Affairs).
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a) As for beneficiaries specified
at Points b, c, d, Clause 1, Article 60 of the Law on Social Insurance 2014:
Make one-time payout corresponding
to their actual period of payment of social insurance premiums. If the unpaid
social insurance money has been covered by the employer or other financial
source, the social security agency shall make an additional payout related to
the one-time payout as prescribed in point dd of this point.
b) As for beneficiaries specified
at Point a, Clause 1, Article 60 of the Law on Social Insurance in 2014 who
have not paid full 20 years of social insurance premiums (including the period
that social insurance premiums have not been paid), the payout shall be made as
similar as the case in sub-point a of this point.
c) As for beneficiaries specified
in Resolution No. 93/2015/QH13 dated June 22, 2015 of the National Assembly who
have not paid social insurance premiums for at least full 20 years (including
the period that social insurance premiums have not been paid), the payout shall
be made as similar as the case in sub-point a of this point.
An employee's eligibility for a
lump-sum social insurance benefit is determined one year after their
resignation as prescribed in Clause 1, Article 1 of Resolution No.
93/2015/QH13. This is based on the time of their last resignation before the
employee applies for a lump-sum social insurance benefit.
d) When the unpaid social insurance
premium has been covered by the employer or other financial source, the social
security agency shall record and reserve the entire period of additional
payment. If the employee continues to participate in social insurance,
the time they paid additional social insurance premiums will be added to the
period of their continued participation in social insurance for the purpose of
calculating their social insurance benefit payout.
dd) In case the unpaid social
insurance premium has been covered by the employer or another financial source
and the employee applies for a lump-sum social insurance benefit for the additional
payment period, the social security agency shall combine these two periods in
order to re-determine the new benefit amount according to the Law on Social
Insurance 2014 at the time of latter benefit payout and deduct the
re-determined benefit amount corresponding to the former period as the basis
for previous payout of lump-sum social insurance benefit, including the rounded
time (if any) for additional payment to employees.
For example: Mr. Nguyen Van A
has a period of participating in social insurance from January 2016 to October
2019 of 3 years and 10 months; in which the employer has paid social insurance
premiums for Mr. A from January 2016 to July 2018, the premiums for the period
from August 2018 to October 2019 have not yet been paid. It is assumed that, in
June 2021, Mr. A applies for lump-sum social insurance payout with the average
monthly salary for social insurance payment of 6,000,000 VND. The social
security agency shall pay out a lump-sum social insurance benefit to Mr. A with
the confirmed period of payment to the social insurance fund from January 2016
to July 2018 for 2 years and 7 months as follows:
Mr. A's lump-sum social insurance
benefit in June 2021 is:
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It is assumed that Mr. A may pay
additional social insurance premiums from August 2018 to October 2019 and he
applies for lump-sum social insurance benefit for the additional payment
period. The social security agency shall settle the application as
follows:
- The total period of payment of
social insurance premiums for Mr. A is 03 years and 10 months, rounded up to 4
years.
- It is assumed his average monthly
salary calculated at the time of August 2023 is VND 7,000,000.
- The total amount of lump-sum
social insurance benefit after recalculation is:
7,000,000 VND x 4 years x 2 months
= 56,000,000 VND.
- The payout amount that Mr. A is
eligible (after recalculation):
7,000,000 VND x 3 years x 2 months
= 42,000,000 VND.
- The amount of Mr. A's additional
benefit is:
56,000,000 VND - 42,000,000 VND =
14,000,000 VND.
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3. Death
benefits
3.1. A funeral allowance will be
paid to the person who takes care of the funeral of an employee who has actual
period of compulsory social insurance of at least 12 months according to Clause
1, Article 66 of the Law on Social Insurance 2014, or the total time of
compulsory and voluntary payment of social insurance premiums of at least full
60 months as prescribed in Clause 1, Article 80 of the Law on Social Insurance
2014 (excluding unpaid periods).
3.2. A monthly survivorship
allowance will be paid to a relative of a deceased employee who has paid
compulsory social insurance premiums for at least full 15 years (excluding
unpaid periods), if the relative chooses to receive a monthly allowance instead
of a lump-sum payment. The time to receive the monthly survivorship allowance
shall comply with the provisions of Clause 3, Article 68 of the Law on Social
Insurance 2014.
3.3. Payout of lump-sum
survivorship allowance in the following cases:
a) The employee has not paid enough
full 15 years of compulsory social insurance premiums according to Clause 1,
Article 69 of the Law on Social Insurance in 2014 (including unpaid periods);
b) A lump-sum survivorship
allowance will be paid to a relative of a deceased employee who has paid
compulsory social insurance premiums for at least full 15 years (excluding
unpaid periods), if the relative chooses to receive a lump-sum allowance
instead of the monthly allowance to which he/she is also entitled as prescribed
in clause 3 Article 69 of the Law on Social Insurance in 2014.
c) A lump-sum survivorship
allowance will be paid to a relative of a deceased employee who has paid
compulsory social insurance premiums for at least full 15 years (including
unpaid periods), if the relative chooses to receive a lump-sum allowance
instead of the monthly allowance to which he/she is also entitled as prescribed
in clause 3 Article 69 of the Law on Social Insurance in 2014.
d) A lump-sum survivorship
allowance will be paid to a relative of a deceased employee who has paid
compulsory social insurance premiums for at least full 15 years (including
unpaid periods), if the relative is not eligible for monthly allowance as
prescribed in clause 2 Article 67 of the Law on Social Insurance in 2014.
dd) A lump-sum survivorship
allowance will be paid to a relative of a deceased employee who has paid compulsory
social insurance premiums for at least full 15 years (excluding unpaid
periods), if the relative is not eligible for monthly allowance as prescribed
in clause 2 Article 67 of the Law on Social Insurance in 2014.
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3.4. A relative of a deceased
employee who has paid compulsory social insurance premiums for at least 15
years (but the actual period of premium payment is not enough for full 15
years) will not be paid out a survivorship allowance, even if he/she applies
for and is eligible for a monthly allowance.
4. Documentation
and procedures
4.1. Sickness benefits; maternity
benefits as prescribed in Article 32, Article 33, Clause 2, Article 34, Article
37 of the Law on Social Insurance 2014; allowance for convalescence and health
rehabilitation: Comply with the Law on Social Insurance 2014 in which the
list of employees taking leave related to sickness, maternity, convalescence
and health rehabilitation is established by the Provincial Labor Confederation
under the guidance of the Ministry of Labor, Invalids and Social Affairs in
Official Dispatch No. 1188/LDTBXH-BHXH dated April 12, 2016. This list does not
include employees whose employers are undergoing bankruptcy procedures.
4.2. A lump-sum maternity benefit
will be paid to female employees giving birth, employees adopting children,
surrogate mothers and intended mothers; male employees and husbands of intended
mothers: in the same way as an employee quits their job before the time
of childbirth, child adoption, claiming motherhood in surrogacy.
4.3. Pension, death benefits: in
the same way as an employee who reserves their period of participation in
social insurance.
4.4. Documentation and procedures for
payout of social insurance benefits in case there is no legal representative
The time of termination of the
employment contract for determining social insurance benefits for employees
with no legal representative will be determined as follows: Social security
agencies of provinces and centrally run cities coordinate with the local
authorities to determine the time of termination of the employment contract as
prescribed in Clause 7 Article 34 and Clause 2 Article 45 of the Labor Code
(calculated from the date the business registration authority, affiliated to
the People’s Committee of province, issues a notice that there is no legal
representative or legal representative’s authorized person).
IV. Implementation
1. Information Technology Center
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a) When an officer enters the
social insurance numbers of employees, the system should show the corresponding
status of the employer who has not fully paid the social insurance premiums
stated in Section I of this Official Dispatch.
b) Add the field “requirements for
payout of benefits” under "Official Dispatch 1025" for the processing
officer to integrate.
c) Estimate the remaining amount to
be paid for each type of benefit for cases that have been paid out according to
the guidance in this Official Dispatch, if the beneficiaries choose to receive
the benefit under Official Dispatch 1025, when the unpaid social insurance
premiums are covered by the employer or another financial source.
2. Social security agencies of
provinces and centrally affiliated cities shall:
2.1. Report to the Steering
Committee for the implementation of social insurance and health insurance
policies in the provinces/cities to direct specialized agencies to determine
the time of termination of employment contracts at employers without legal
representatives as prescribed in Clause 7 Article 34 and Clause 2, Article 45
of the Labor Code.
2.2. Implement this Official
Dispatch and promptly report arising problems (if any) to Vietnam Social
Security for guidance.
2.3. Review and aggregate data for
the case specified at point 3.4 Clause 3, Section III of this Official
Dispatch, and then send it to the Vietnam Social Security, together with a
proposal for settlement plan before August 1, 2023 so that the Vietnam Social Security
can have a basis to report to the Ministry of Labor, War Invalids and Social
Affairs for guidance.
3. The affiliated entities of the
Vietnam Social Security shall, according to their functions and tasks, guide
and organize the implementation of relevant contents.
This Official Dispatch supersedes
Official Dispatch No. 2802/BHXH-CSXH dated September 6, 2021 of Vietnam Social
Security./.
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PP.
GENERAL DIRECTOR
DEPUTY GENERAL DIRECTOR
Le Hung Son