Withdrawing Social Insurance One Time After July 1, 2025: Things Employees Need to Know

Legal basis:

• Social Insurance Law 2024;

• Resolution 28/NQ-TW

1. New regulations on one-time withdrawal of social insurance according to the revised Social Insurance Law 2025

1.1. As stipulated in Point d, Clause 1, Article 70 of the Law on Social Insurance 2024  (New Law on Social Insurance), employees are allowed to withdraw social insurance one time after July 1, 2025 when meeting the following conditions:

• Have time to participate in social insurance before July 1, 2025.

• Social insurance participation has been terminated.

• After 12 months, you are not subject to compulsory social insurance and also not subject to voluntary social insurance.

• Social insurance payment period is less than 20 years.

• There is a document requesting to receive one-time social insurance.

Thus, even if employees start participating in social insurance on June 30, 2025, they still have the right to withdraw one time if they meet the above conditions.

1.2. For employees participating in social insurance from July 1, 2025 onwards, one-time withdrawal of social insurance only applies in some special cases, including:

• Retirement age but less than 15 years of social insurance contributions.

• Go abroad to settle down.

• Suffering from life-threatening diseases (cancer, AIDS, severe tuberculosis, paralysis, decompensated cirrhosis, etc.).

• Reduced working capacity of 81% or more.

• People with severe disabilities.

In case after 12 months of unemployment, less than 20 years of social insurance contributions and no longer continuing to participate, one-time social insurance withdrawal  will no longer be possible as before.

*Why is it limited to withdrawing social insurance at one time?

The new policy aims to properly implement the spirit of Resolution 28-NQ/TW, thereby reducing the situation of one-time withdrawal of social insurance, encouraging employees to reserve their participation time to receive pensions and long-term social security regimes.

At the same time, the National Assembly also requested the Government to develop solutions to support workers  such as: appropriate credit policies, job counseling and referral, vocational training, job conversion support... to limit the situation of withdrawing social insurance at one time due to immediate financial difficulties.

2. One-time Social Insurance withdrawal application

Depending on each case, employees prepare the following documents:

2.1. Basic profile

• Original social insurance book.

• Application for one-time social insurance benefit (Form No. 14-HSB).

• Other documents proving special circumstances (if any) and identification papers. 

2.2. Special cases

• Settling abroad: Notarized/consularized translation of one of the following documents: foreign passport, settlement visa, nationality confirmation document or permanent residence card/residence for 5 years or more. 

• Serious illness: Copy of medical record or medical examination report confirming a reduction in working capacity of 81% or more.

• Had time in the army before 2007 : Personal declaration (Form 04B-HBQP).

• Foreign workers in Vietnam : Submit application (Form 14-HSB) with medical records (if suffering from a serious illness).

3. Implementation process

Step 1. Submit application

Employees submit their application through one of the following methods:

• Online: Vietnam Social Security Portal or through I-VAN Organization.

• By post: Send documents to the Social Security agency where you live.

• Directly: At the provincial Social Insurance agency where you reside (place of permanent or temporary residence).

Step 2. Social Security Agency receives and processes

Within 10 working days , the Social Insurance agency will assess and decide on one-time social insurance benefits.

Step 3. Receive results and benefits

Employees receive:

• Decision to receive social insurance benefits at one time.

• Social insurance payment history.

• Grant:

  • Receive directly at the Social Security agency.

  • Or via public postal service.

  • Or transfer to personal account.

*Important Note

• In case of authorizing  another person to receive on your behalf, there must be a power of attorney/authorization contract in accordance with the law.

• Submitted documents must be originals  or certified copies  as prescribed.

• Employees should look up application results online at the Vietnam Social Security Public Service Portal to save time.

4. Formula for calculating one-time social insurance in 2025

According to Clause 3 and Clause 4, Article 70 of the 2024 Law on Social Insurance, the one-time social insurance benefit is calculated based on the number of years of social insurance contributions and the average monthly salary for social insurance contributions, excluding the State support when participating in voluntary social insurance.

Detailed calculation:

1. 1.5 months of average salary for each year of social insurance contribution before 2014.

2. 2 months average salary for each year of social insurance contribution from 2014 onwards.

3. In case of less than 01 year: The benefit level is equal to the amount paid, maximum equal to 02 months of average salary.

4. Odd months: If there is a payment period before 2014 that is not a full year, the odd months will be transferred to the period after 2014 for calculation.

Example:

• Employees who have paid social insurance for 5 years before 2014 and 7 years after 2014

• Average salary for social insurance contribution: 8,000,000 VND/month

Calculation: X= (1.5×5+2×7)×8,000,000 = (7.5+14)×8,000,000 =21.5×8,000,000 = 172,000,000 VND 

So, the one-time social insurance amount that the employee receives is 172 million VND. 

*Important Note

• The benefit level may vary depending on the average salary for social insurance contributions and the number of years of participation.

• Employees should carefully consider between withdrawing social insurance at one time and keeping it to receive pension, because receiving pension brings more long-term social security benefits.

6. What should businesses and employees pay attention to?

• Enterprises need to clearly communicate to employees to avoid misunderstandings that "after July 1, 2025, one-time withdrawal of social insurance will no longer be allowed". In fact, withdrawal is still allowed but the conditions are stricter. 

• Workers  should consider carefully before withdrawing their social insurance at one time, because preserving their participation time helps them enjoy more benefits when they retire, especially monthly pensions and lifelong health insurance cards.

In short:

Employees can still withdraw their social insurance contributions in one lump sum after July 1, 2025  if they have participated before this date and meet the conditions. For new participants after July 1, 2025, withdrawal is only possible in some special situations. This is an important step towards a sustainable social security system  and reducing the burden on the social budget in the long term.

*Note: The above consulting content is for reference only. Depending on the time and different subjects, the above consulting content may no longer be suitable due to changes in legal policies. If you need in-depth advice and answers, please contact email: contact@vinex.com.vn