David (name changed), an Australian citizen, asked DEDICA:
"I have been working as a sales director for a company in Hanoi and have paid into BHXH (compulsory social insurance) for exactly 3 years. I am resigning at the end of this year to return home permanently and do not intend to work in Vietnam again. Am I eligible to withdraw a lump-sum social insurance payment, and how much exactly will I receive?"
DEDICA ADVISES You are eligible for a lump-sum withdrawal because you are terminating your labor contract and will no longer be working in Vietnam. With 3 years of contributions, this entire period falls under the calculation method of 2 months' average salary for each year of contribution. If your salary used as the basis for social insurance contributions was consistently around 40 million VND/month throughout those 3 years, after adjusting for the annual inflation rate (price adjustment factor), you would receive approximately 248 million VND. Below are the legal grounds and specific calculations for your case.
Conditions for foreigners to withdraw lump-sum social insurance when returning home
The Law on Social Insurance 2024 (No. 41/2024/QH15, effective from July 1, 2025) provides specific conditions for lump-sum social insurance withdrawal for foreign workers in Vietnam. The most common case, which applies to you, is when your labor contract expires and you do not intend to continue working in Vietnam.
In other words, you do not need to wait until retirement age or prove any other special reasons. Once your labor contract has ended (or your work permit has expired and not been renewed) and you request a withdrawal, the social insurance agency will process it. Documents required include the finalized social insurance book and an application for lump-sum social insurance. If you have already left Vietnam before submitting the dossier, you can issue a valid power of attorney to a representative to handle the entire procedure on your behalf. The processing time is 07 working days from the date the social insurance agency receives a complete dossier.
How to calculate the lump-sum social insurance amount for 3 years of contribution
For foreign workers, the salary used as a basis for calculating lump-sum social insurance is the average of the entire contribution period, not just the final years.
The salary for each year is adjusted for inflation before calculating the average, as 40 million VND in 2023 does not have the same value as 40 million VND in 2025. Each year, Vietnam Social Security announces a separate adjustment factor table for each contribution year to apply to this calculation.
After determining the average, the amount is calculated based on the number of years contributed: each year contributed before 2014 is calculated as 1.5 months of the average salary, while each year from 2014 onwards is calculated as 2 months.
Applying this to David's case: he paid social insurance from January 2023 to the end of December 2025, exactly 3 years, with a stable salary of 40 million VND/month. According to the adjustment factor table announced by Vietnam Social Security for 2026, the factors for 2023 are 1.07, 2024 is 1.03, and 2025 is 1.00. After adjustment, the annual salary levels are 42.8 million, 41.2 million, and 40 million VND/month respectively. The average for the entire 3 years is approximately 41.33 million VND/month.
Since all 3 years fall into the period from 2014 onwards, the benefit equals 2 months of average salary multiplied by 3 years, totaling 6 months of average salary. The result is approximately 248 million VND.
Conclusion
In summary, having contributed to social insurance for 3 years and terminating your labor contract to return home permanently qualifies you for a lump-sum withdrawal. Because all 3 years fall within the period calculated at 2 months of average salary per year, the amount you receive is equivalent to 6 months of the inflation-adjusted average salary, not just based on your salary at the time of resignation. Things to do before leaving: finalize your social insurance book with your company, prepare your documents, and if you cannot finish before your flight, issue a valid power of attorney for a representative in Vietnam to submit the application and receive the results for you.
If you want to know the exact amount you will receive based on your actual salary and contribution period, or if you need to set up a power of attorney to handle procedures after leaving Vietnam, DEDICA can calculate your specific benefits and represent you in dealings with the social insurance agency until you receive your money. Contact DEDICA for legal consultation tailored to your specific case.
This content is for reference based on current regulations; the actual amount received depends on the salary actually contributed each month, the adjustment factor at the time of processing, and individual documents. Please consult a DEDICA lawyer before making any decisions.
