What Changes Are There for Withdrawing Social Insurance in a Lump Sum from July 1, 2025?
What Is a Lump-Sum Social Insurance Withdrawal?
A lump-sum social insurance withdrawal is when an employee receives a sum of money corresponding to the period they have contributed to social insurance, provided they have not yet met the conditions for a pension. Under current regulations, employees can withdraw social insurance in a lump sum if, after one year of leaving a job, they have not accumulated 20 years and do not continue to participate in mandatory or voluntary insurance. Let’s explore the calculation method for a one-time social insurance withdrawal and the conditions for doing so.
Method for Calculating a Lump-Sum Social Insurance Withdrawal in 2025
The calculation method applied when withdrawing social insurance in a lump sum is as follows:
- Social insurance contribution period before 2014: Each year is calculated as 1.5 months of the average monthly salary subject to social insurance contributions.
- Social insurance contribution period from 2014 onward: Each year is calculated as 2 months of the average monthly salary subject to social insurance contributions.
- In cases where the social insurance contribution period is less than one year: The benefit amount equals the contributions made, but not exceeding 2 months of the average monthly salary subject to social insurance contributions.
Note: The average salary is calculated based on the entire period of social insurance contributions.
The lump-sum social insurance benefit amount in 2025 under the 2014 Social Insurance Law and the 2024 Social Insurance Law remains the same. Specifically, each year contributed before 2014 is calculated as 1.5 months of salary, and each year after 2014 is calculated as 2 months of salary.
Below is a specific example of how to calculate a lump-sum social insurance withdrawal according to regulations:
Mr. A ceased employment in June 2023 and did not continue participating in social insurance. By July 2025, he meets the conditions for a lump-sum withdrawal (after 2 years of unemployment). Total social insurance contribution period: 8 years
Breakdown:
3 years contributed before 2014 (2011–2013)
5 years contributed from 2014 to 2018
Average monthly salary subject to social insurance contributions: 8,000,000 VND
The calculation for a lump-sum social insurance withdrawal is as follows:
For the period before 2014:
- 3 years × 1.5 months of salary = 4.5 months of salary
➤ For the period from 2014 onward:
- 5 years × 2 months of salary = 10 months of salary
➤ Total benefit amount:
- 4.5 + 10 = 14.5 months of salary
➤ Lump-sum social insurance amount received:
- 14.5 × 8,000,000 = 116,000,000 VND
Key Changes to the Latest Lump-Sum Social Insurance Policy to Note
From July 1, 2025: Lump-sum social insurance withdrawal will not be allowed unless under specified conditions
According to the 2024 Social Insurance Law, from July 1, 2025, social insurance participants will not be allowed to withdraw social insurance in a lump sum unless they meet specific conditions outlined in the law.
Cases Eligible for Lump-Sum Social Insurance Withdrawal Under the New Regulations
- Having a social insurance contribution period before July 1, 2025;
- After 12 months, no longer subject to mandatory social insurance;
- Not participating in voluntary social insurance and not having 20 years of contributions.
Notes for Social Insurance Participants from July 1, 2025 Onward
-
Individuals starting to participate in social insurance after July 1, 2025, will not be allowed to withdraw social insurance in a lump sum unless under specified conditions. The new policy encourages accumulating time toward a pension rather than opting for a one-time withdrawal.
Nên rút BHXH 1 lần hay không? Góc nhìn từ chuyên gia pháp lý – lao động
Should You Withdraw Social Insurance in a Lump Sum? Legal and Labor Expert Perspective
- Continuing participation allows access to benefits with higher amounts, as all benefits are calculated based on contribution time, such as sick leave, occupational accidents, and occupational diseases…
- Eligible for a pension under more favorable conditions;
- During the pension period, the social insurance fund covers health insurance;
- Eligible for a monthly allowance if not meeting pension conditions and not yet at the age for social pension benefits;
- During the monthly allowance period, the state budget covers health insurance.
Learn more about the new 2025 pension regulations: https://vietnamtax.net.vn/vi/chinh-sach-bhxh-2025-thay-doi/
Cases Where Withdrawing Social Insurance in a Lump Sum Is Recommended
- Employees with no intention of continuing to work or participate in social insurance in the future.
- Facing financial difficulties and needing the lump-sum social insurance amount to cover living expenses.
- Meeting the new conditions for a lump-sum withdrawal and unwilling to wait for a pension.
Cases Where It Is Better to Preserve Without Withdrawing
- Planning to return to work and continue social insurance participation to qualify for a pension.
- Wanting to ensure long-term benefits, including a monthly pension and health insurance upon retirement.
- Having contributed nearly 15 years to social insurance and being capable of completing the minimum period to qualify for a pension.
Latest Regulations for Lump-Sum Social Insurance Benefits: What Employees Need to Know
Is your company ready to update the 2024 Social Insurance Law?
Vina TPT provides consulting and review services for social insurance records, labor contracts, and leave policies to help businesses comply with the law and avoid inspection risks.
Explore additional services: HUMAN RESOURCES – INSURANCE CONSULTING
Contact VINA TPT for Support
📞 (+84) 984 980 069
📧 vtpt-infor@classlib.net
🌐 https://vietnamtax.net.vn/
5th Floor, More Building, 83B Hoang Sa, Da Kao Ward, District 1, HCMC