​         On June 21, 2023, VietNam Social Security issued Official Dispatch  No. 1880/BHXH-CSXH guiding payout of social insurance benefits to employees at employers that have not fully paid social insurance premiums.

       According to the Official Dispatch, guidelines on sickness, maternity and retirement benefits for employees of units with insufficient social insurance contributions are as follows:

1. Sickness and maternity benefits

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).

2.2. One-time payout of social insurance benefits

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.

e) 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.

* 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.

For Details: 1880_BHXH-CSXH_570357.pdf

          Department of Enterprise Management.