ONE-TIME SOCIAL INSURANCE CASES APPLIED TO FOREIGN WORKERS

According to Government Decree 143/2018/ND-CP issued on October 15, 2018 and put into force on December 1, 2018, providing details on enforcement of compulsory social insurance for foreign workers working in Vietnam under the Law on Social Insurance and the Law on Occupational Safety and Health. There are four cases that foreign workers are entitled to receive one-time social insurance.

Specifically, foreign workers holding foreign nationality and working in Vietnam are subject to compulsory social insurance when they have work permits or practicing certificates or a practicing licences issued by a competent Vietnamese agency and have labour contracts with indefinite terms and labour contracts with definite terms from one year or more with employers in Vietnam. Like Vietnamese workers, foreign workers are subject to compulsory social insurance regimes, including sick leave, maternity leave, labour accident insurance, occupational disease, retirement and death allowances; compulsory social insurance for workers is calculated on the time they pay social insurance according to the law.

In case they want to receive one-time social insurance, foreign workers must be old enough to receive pensions but pay social insurance premiums for less than 20 years; they carry life-threatening diseases such as cancer, polio, cirrhosis, leprosy, severe tuberculosis and HIV/AIDS and other diseases as prescribed by the Ministry of Health; they are eligible for retirement pensions but not residing in Vietnam; and they terminate their employment or their work permit, practicing certificate or practicing licence expires without being extended.

The time for calculating one-time social insurance payment starts upon the date recorded in the decision of competent social insurance agency; the adjustment of wages subject to social insurance premium to calculate one-tine social insurance payment is based on the time recorded in the decision of the social insurance agency. Regarding the level of one-time social insurance payment for foreign workers, for every year of social insurance, they will get 1.5 months of the average monthly salary subject to social insurance premium in the years before 2014 or 2 months of the average monthly salary subject to social insurance premium in the years after 2014. To be entitled to a one-time social insurance payment, within 10 working days from the date of termination of the labour contract or from the time their work permit or practice certificate expires (depending on which condition comes first), workers do not continue to work or are not employed further, they can apply for one-time social insurance payment to social insurance agencies. Within five working days after receiving complete documents as prescribed, social insurance agencies shall have to settle and arrange payment to workers. In case of settlement failure, they shall have to reply in writing, clearly stating the reason.

Source: VCCI