Calculating Social Insurance in Vietnam
In Vietnam, social insurance (SI) is a system designed to protect workers in case of retirement, sickness, maternity, or occupational accidents. This article focuses specifically on how to estimate the lump-sum social insurance payout you may be eligible for after leaving your job or retiring.
Both employers and employees share contributions, which are typically calculated as a percentage of the employee’s salary or a designated minimum salary. Over time, the government adjusts the minimum wage, which impacts the required contributions and benefits.
If you're curious about how much you might receive from social insurance after leaving your job or retiring, you can use the calculator at the bottom of this page to get an estimate. Jump to calculator ⬇️
Key Points about Social Insurance
- Mandatory Contributions: Employers and employees are generally required to pay specific percentages (varying by policy) of the gross salary into the social insurance fund.
- Changing Minimum Wage: Vietnam periodically revises its minimum wage, which affects the calculation base for social insurance. Contributors should remain aware of updates to avoid miscalculations.
- Benefit Calculation: The lump-sum payout is commonly based on years of contribution and the salary base used for those contributions.
- Claiming Process: To claim benefits, individuals usually have to provide documentation (employment history, social insurance book, etc.) and follow the procedures set by the Vietnamese government’s social insurance authority.
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How Claimable Social Insurance Is Calculated
Social insurance contributions in Vietnam are typically based on either:
- Actual monthly salary: for employees whose salary is above the regional minimum wage, or
- Minimum wage base: for those whose declared salary is below the minimum threshold.
The employee contributes 8% of their salary toward retirement and survivorship insurance, while the employer contributes approximately 17.5% in total (covering retirement, sickness, maternity, and occupational accident insurance).
When calculating lump-sum payouts, especially in the case of early retirement or withdrawal after leaving the country, a simplified formula is often used:
Benefit = 2 × salary base × (number of contribution months ÷ 12)
This formula gives an approximate estimate and assumes 2 months of salary per year of contribution.
Minimum Salary (Common Base) for Social Insurance (2010–2024)
| Time Period | Common Base Salary (VND/month) | Legal Basis |
|---|---|---|
| May 1, 2010 – Apr 30, 2011 | 730,000 | Decree 28/2010/ND-CP |
| May 1, 2011 – Apr 30, 2012 | 830,000 | Decree 22/2011/ND-CP |
| May 1, 2012 – Jun 30, 2013 | 1,050,000 | Decree 31/2012/ND-CP |
| Jul 1, 2013 – Apr 30, 2016 | 1,150,000 | Decree 66/2013/ND-CP extended by Decree 100/2015/ND-CP |
| May 1, 2016 – Jun 30, 2017 | 1,210,000 | Decree 47/2016/ND-CP |
| Jul 1, 2017 – Jun 30, 2018 | 1,300,000 | Decree 47/2017/ND-CP |
| Jul 1, 2018 – Jun 30, 2019 | 1,390,000 | Decree 72/2018/ND-CP |
| Jul 1, 2019 – Dec 31, 2019 | 1,490,000 | Decree 38/2019/ND-CP |
| Jan 1, 2020 – Dec 31, 2022 | 1,490,000 | Decree 38/2019/ND-CP |
| Jan 1, 2023 – Jun 30, 2023 | 1,490,000 | Decree 38/2019/ND-CP |
| Jul 1, 2023 – Jun 30, 2024 | 1,800,000 | Decree 24/2023/ND-CP |
| Jul 1, 2024 onward | 2,340,000 | Decree 73/2024/ND-CP |
Notes
All figures above refer to the common base salary (lương cơ sở), not the regional minimum wage (lương tối thiểu vùng). When calculating social insurance contributions, if an employee’s actual salary is lower than the common base, you must apply at least the minimum shown for the applicable time period.
Social Insurance Claim Calculator
Below is a simple calculator that demonstrates how you might calculate an estimated lump-sum SI payout based on monthly salary and contribution periods.
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Want a full legal overview? Check out this detailed article by LeTran Law:
Understanding Social Insurance in Vietnam
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