How will the one-time social insurance policy change from 2025?

One of the policies that many workers are interested in is one-time social insurance. However, this policy will have a big change when the revised Law on Social Insurance comes into effect. The revised Law on Social Insurance will take effect from July 1, 2025. Therefore, from this point on, policies related to the one-time social insurance regime will also change according to the provisions of the new Law.

Before July 1, 2025, the one-time social insurance regime will still be implemented according to the current regulations in the 2014 Social Insurance Law, No. 58/2014/QH13.

1. People participating in social insurance from July 1, 2025 will not be able to withdraw one-time social insurance

On the morning of June 29, 2024, the National Assembly passed the revised Law on Social Insurance. One of the notable contents of the approved Draft Law is the provision:

Employees who have paid social insurance before the effective date of this law (ie July 1, 2025), after 12 months are not subject to compulsory social insurance, do not participate in voluntary social insurance and have paid social insurance for less than 20 years, can withdraw social insurance in one lump sum.

That means, employees who participate in social insurance from July 1, 2025 onwards cannot withdraw social insurance in one lump sum. Thus, the National Assembly has finalized option 1 of the 2 options previously proposed in the draft revised Law on Social Insurance.
 

New social insurance strategy aims for better coverage, satisfaction

2. Adding 2 more subjects to be eligible for one-time withdrawal of social insurance

Based on the provisions of Article 107 of the latest draft amended Law on Social Insurance submitted to the National Assembly, the subjects specified in Clause 4, Article 3 of this Law, upon request, are eligible for one-time social insurance, specifically:

(1) Vietnamese citizens aged 15 years or older who are not subject to compulsory social insurance and are subject to voluntary social insurance.

The following 2 subjects are temporarily suspending the performance of labor contracts and work contracts that are subject to voluntary social insurance (except in cases where the two parties have an agreement on compulsory social insurance payment during this period)

(2) People working under indefinite-term labor contracts or labor contracts with a term of 01 month or more (including cases where the employee and the employer agree on a different name but with content showing the paid work, salary and management, operation and supervision of one party)

(3) Cadres, civil servants and public employees.

The above subjects are allowed to withdraw social insurance one time if they fall into one of the following cases:

• Retirement age as prescribed in Clause 2, Article 169 of the Labor Code, No. 45/2019/QH14 but have paid social insurance for less than 15 years and do not continue to participate in social insurance.
• In case the employee does not receive a one-time social insurance payment, he/she can choose to receive a monthly allowance.
• Going abroad to settle;
• People who are suffering from one of the following diseases: cancer, paralysis, cirrhosis, severe tuberculosis, AIDS or other life-threatening diseases as prescribed by the Ministry of Health;
• People with a labor capacity reduction of 81% or more; people with extremely severe disabilities;

Thus, it can be seen that from the time the amended Law on Social Insurance takes effect from July 1, 2025, two more subjects have been added to be eligible for one-time withdrawal of social insurance, including:

• People with a labor capacity reduction of 81% or more;
• People with extremely severe disabilities.

Many National Assembly delegates propose lending money to workers instead of withdrawing social insurance at once.

3. One-time social insurance benefits from 1-7-2025

According to Clause 2, Article 107 of the draft Law on Social Insurance, the one-time social insurance benefits are calculated based on the number of years of social insurance contributions, each year is calculated as follows:

• 1.5 times the average monthly income for social insurance contributions for years of contributions before 2014.
• 02 times the average monthly income for social insurance contributions for years of contributions from 2014 onwards;
• Equal to the amount paid, the maximum level is 02 times the average income used as the basis for social insurance contributions in cases where the period of social insurance contributions is less than one year.

4. The basic level of benefits and calculation are still similar to the provisions of the 2014 Law on Social Insurance, however, the amended Law clearly states the following provisions:

In case the period of social insurance payment is both before and after 2014 and the payment period before 2014 has odd months, those odd months will be transferred to the period of social insurance payment from 2014 onwards to calculate the level of one-time social insurance benefits. In addition, if the employee is eligible for both pension and one-time social insurance benefits, the employee has the right to choose between receiving pension or withdrawing social insurance at one time.

If you need more assistance regarding pension and one-time social insurance benefits for your employees, please contact us:

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