Many foreign workers simply add up their recent salaries and multiply by a random coefficient to guess their lump-sum social insurance (BHXH) payout. These estimates are often far from reality because they overlook price adjustment coefficients, contribution caps, or the requirement to calculate the average salary over the entire contribution period as per the 2024 Law on Social Insurance. An incorrect calculation not only leads to unrealistic expectations but can also cause your application to be rejected if the declared figures do not match the official calculations of the social insurance agency.
Is the average salary used for calculation based on the few years with the highest salary or the entire contribution period? Is the salary for each year kept as is, or must it be multiplied by an adjustment coefficient before being included in the formula? And if there are odd months, such as 5 years and 6 months, how are these converted? These are technical details that cause most individuals to miscalculate, sometimes by dozens of millions of VND compared to the actual amount received. This article analyzes the correct formula under the 2024 Law on Social Insurance, illustrates it with a concrete example, and introduces a tool to help you estimate accurately in just a few minutes.
Calculation Formula for Lump-sum Social Insurance under the 2024 Law on Social Insurance
From July 1, 2025, foreign nationals working in Vietnam under labor contracts with a term of 12 months or more are required to participate in compulsory social insurance. Upon termination of the labor contract or expiration of their work permit without renewal, they are eligible to request a lump-sum social insurance payout. The calculation formula applies to all employees, regardless of nationality.
A notable point for foreign workers: the compulsory social insurance regime for this group in Vietnam was only established in late 2018. Therefore, almost the entire contribution period for foreign workers falls into the "from 2014 onwards" phase, meaning it is always multiplied by the coefficient of 2; there is no portion calculated using the 1.5 coefficient, which only applies to years before 2014.
Another point easily overlooked: lump-sum social insurance is paid from the retirement and survivorship fund, but foreign workers did not contribute to this fund from day one. According to the roadmap set when the compulsory social insurance regime for foreigners began (from December 1, 2018), foreign workers only contributed to the sickness, maternity, and occupational accident/disease funds during the initial phase; contributions to the retirement and survivorship fund officially started from January 1, 2022. Therefore, if you began working and participating in social insurance in Vietnam before 2022, only the contribution period FROM January 1, 2022, onwards is included in the lump-sum calculation formula, even if your social insurance book shows a longer participation history.
The part most prone to miscalculation is the concept of "average monthly salary for social insurance contributions." Many assume this is the salary of the last few months or years, but the law prescribes differently for employees in the business sector.
In other words, the average must be calculated over ALL months of contribution; you cannot simply take the highest salary year or the few years before resignation. However, adding the salary of ten years ago directly to this year's salary is unfair because the value of money has changed over time. This is why the law requires adjusting the salary of each year based on inflation before calculating the average.
Decree 158/2025/ND-CP provides specific guidance: the adjustment coefficient for each year is calculated by Vietnam Social Security based on the annual average CPI provided by the statistical agency and is re-announced annually. The coefficient table applied for 2026 (per Official Letter 340/BHXH-CSXH dated February 3, 2026) shows a clear disparity over time: 2018 coefficient 1.23; 2020 is 1.16; 2023 is 1.07; and 2025-2026 is 1.00. Contributed salaries from the early years of participating in social insurance in Vietnam are therefore significantly increased compared to the figures recorded in the book, and skipping this step will result in self-calculated results lower than reality.
Finally, the contribution-based salary for each month cannot exceed a cap, even if the actual salary is higher.
The reference level is currently equal to the base salary. From July 1, 2026, the reference level is 2,530,000 VND, pushing the cap for social insurance contributions to 50,600,000 VND/month. Those with an actual salary higher than the cap of the corresponding contribution year will still only have social insurance calculated based on that year's cap; the excess portion is not added to the payout.
Steps for Self-Calculation and a Concrete Example
Combining the above regulations, self-calculating the lump-sum social insurance consists of five steps in the following order.
- List each period of social insurance contributions FROM January 1, 2022, onwards and the contribution-based salary for that period (use the exact figure on your social insurance book, not the actual salary if they differ, and do not exceed the contribution cap of the corresponding year; the period before January 1, 2022, is not included in the formula).
- Look up the adjustment coefficient (inflation coefficient) of each year according to the table announced by Vietnam Social Security for the current year, then multiply that coefficient by the salary of the corresponding year.
- Sum the adjusted salaries of the entire contribution period and divide by the total number of months contributed to obtain the average monthly salary.
- Convert the contribution period if there are odd months: 01 to 06 odd months are counted as half a year, and 07 to 11 odd months are rounded to a full year.
- Multiply the converted number of years by the corresponding coefficient: for foreign workers, most fall into the 2-month average salary category for each year of contribution, as their entire contribution period falls in the phase from 2014 onwards.
Illustrative example (hypothetical data, only to demonstrate the calculation): A foreign worker worked and participated in social insurance in Vietnam continuously from March 2019, terminated the labor contract, and left Vietnam in July 2025. Although the social insurance participation process lasted more than 6 years, the time included in the lump-sum social insurance calculation only starts from January 2022 (when the retirement and survivorship fund began applying to foreign workers) to the end of June 2025, which is 3 years and 6 months. The contribution-based salary and the adjustment coefficient applied for 2026 for the calculated period are as follows.
| Year | Contribution-based Salary (VND/month) | Adjustment Coefficient | Salary After Adjustment (VND/month) | Number of Months |
|---|---|---|---|---|
| 2022 | 35,000,000 | 1.11 | 38,850,000 | 12 |
| 2023 | 38,000,000 | 1.07 | 40,660,000 | 12 |
| 2024 | 40,000,000 | 1.03 | 41,200,000 | 12 |
| 2025 (first 6 months) | 42,000,000 | 1.00 | 42,000,000 | 6 |
The total adjusted salary of the 42 months counted (from January 2022 to June 2025) is approximately 1,700,520,000 VND; dividing by 42 months results in an average monthly salary for social insurance contributions of approximately 40,488,600 VND. The contribution period is 3 years and 6 months, with the 6 odd months rounded to half a year, converted to 3.5 years. Since all 3.5 years fall into the phase from 2014 onwards, the payout equals 3.5 years multiplied by 2 months of average salary, i.e., 7 months of average salary, resulting in approximately 283,420,000 VND. Note that the first nearly 3 years of contributions (March 2019 to December 2021) are completely excluded from this figure, even though the employee participated in social insurance continuously during that period. This is just an illustrative example; the actual amount received by each person depends on their correct salary, the number of months counted, and the correct coefficient for the year the application is processed.
Common Mistakes in Self-Calculation
The following five errors are the most common causes for individuals to miscalculate their figures, sometimes significantly lower or higher than the actual amount received.
First, using the salary of the last one or several years, usually the highest salary year, as the average level instead of calculating it correctly over the entire contribution period. This method often produces higher results than reality if the salary increases over time, or lower if the salary was once high and then decreased.
Second, ignoring the inflation adjustment coefficient and using the salary figure recorded in the social insurance book for each year to calculate the average. For the early years of contributions, the difference coefficient is quite large compared to the current year's coefficient, so skipping this step always results in a self-calculated result lower than the actual amount entitled.
Third, failing to check the annual contribution cap when the actual salary is higher than 20 times the reference level at that time, leading to an overestimation of the amount compared to the level actually used as the basis for social insurance contributions.
Fourth, confusing the two coefficients of 1.5 and 2 months of average salary. Because most foreign workers only participated in social insurance in Vietnam after 2014, their entire contribution period is calculated using the coefficient of 2; there is no portion calculated using the 1.5 coefficient (this coefficient only applies to years contributed before 2014, which usually only relates to Vietnamese employees who participated in social insurance before that time).
Fifth, and the error most likely to cause an overestimation: including the entire period before January 1, 2022, in the calculation period. Foreign workers who began working in Vietnam before this milestone often mistakenly remember that the entire period of social insurance participation is counted, whereas the period before January 1, 2022, did not involve contributions to the retirement and survivorship fund and is therefore not included in the formula.
Lump-sum Social Insurance Calculator and DEDICA's Role
To ensure foreign workers do not have to look up annual inflation coefficients or cap their contribution levels themselves, DEDICA has researched and built a lump-sum social insurance calculator for foreigners, applying the correct formula of the 2024 Law on Social Insurance and the latest adjustment coefficient table. Users only need to enter each contribution period and the corresponding salary (multiple periods can be added if you have changed companies or salary levels), and the tool will automatically apply the correct annual adjustment coefficient, cap the contributions, convert odd months, and provide an immediate estimated result without requiring you to leave personal information.
Once the estimated figure is clear and you want to proceed with filing the actual application, DEDICA supports reconciling the data on your social insurance book with the correct formula before submission, handling cases where the social insurance book has not been closed or information does not match your passport, and acting as an authorized representative to work with the social insurance agency if you have left Vietnam or do not have the time to perform it yourself.
Conclusion
Calculating the correct lump-sum social insurance payout requires five steps: identifying each salary period contributed from January 2022 onwards (the period before this milestone is not counted as there were no contributions to the retirement and survivorship fund), multiplying the inflation coefficient of that specific year, calculating the average over the entire period counted (not just the last few years), converting odd months according to the half-year or full-year rule, and then multiplying the number of years by the coefficient of 2 months of average salary, as most foreign workers only have contribution time from after 2014. The five most common errors when self-calculating are taking the wrong contribution-based salary, ignoring the inflation coefficient, forgetting to apply the contribution cap, confusing the multiplication coefficient between the periods before and after 2014, and mistakenly including the period before January 1, 2022, in the calculation time. Instead of adding and subtracting manually and risking errors, use a tool that has already applied the correct formula to get a reliable estimate before filing your application.
Try DEDICA's lump-sum social insurance calculator now to see approximately how much you might receive. If you would like a lawyer to reconcile the figures before filing the application, or need a representative to perform the entire procedure while you have left Vietnam, DEDICA Law Firm is ready to support you with legal procedures. Contact DEDICA for in-depth legal consultation.
The content of this article and the results from the estimation tool are for reference based on legal regulations at the time of drafting; the actual amount received depends on the accurate file, the contribution process, and the regulations applied at the time the social insurance agency processes it. Please contact DEDICA lawyers for advice on your specific case.
