People who withdraw social insurance at one time will receive inflation compensation from February 28.

(Dan Tri Newspaper) - Individuals who withdraw their social insurance contributions in a lump sum before February 28th will receive compensation for inflation when Circular 01/2025/TT-BLDTBXH, which regulates the adjustment of monthly wages and income for social insurance contributions, comes into effect.

Who is eligible to receive compensation for inflation?

The amount of the lump-sum social insurance benefit for an employee is determined based on the duration of social insurance contributions and the average monthly salary/income used for social insurance contributions.

The monthly salary/income used for calculating social insurance contributions for employees is an absolute amount, but it is multiplied by an adjustment factor for monthly salary and income already subject to social insurance contributions (also known as the inflation adjustment factor) to compensate for the depreciation of the currency over time.

When the inflation adjustment factor is applied at the time of processing the lump-sum social insurance withdrawal, the average monthly salary/income used as the basis for social insurance contributions will be higher than the actual amount they have contributed.

Người rút BHXH một lần được nhận tiền bù trượt giá từ ngày 28/2 - 1 — When receiving benefits, the amount of social insurance contributions paid by the employee is adjusted upwards by an inflation adjustment factor (Illustrative image: Ho Chi Minh City Social Insurance).

Every year, the Ministry of Labour, Invalids and Social Affairs issues a circular stipulating the adjustment levels for monthly wages and income subject to social insurance contributions.

The adjustment levels for monthly wages and income subject to social insurance contributions in 2025 are stipulated in Circular No. 01/2025/TT-BLDTBXH issued on January 10, 2025.

The above adjustments apply to cases of calculating pensions, lump-sum social insurance benefits, lump-sum death benefits, etc., during the period from January 1, 2025 to December 31, 2025.

However, Circular No. 01 only comes into effect on February 28th. Therefore, cases where applications for lump-sum social insurance benefits were processed between January 1st and February 28th have not yet had the inflation adjustment factor applied.

Since Circular No. 01/2025/TT-BLDTBXH came into effect, the Social Insurance agency will pay an additional amount to those receiving lump-sum social insurance benefits, after adjusting for inflation, for the period from January 1st to before February 28th. This amount is commonly referred to by employees as inflation compensation.

For workers who apply for a lump-sum social insurance payment from February 28th onwards, the amount withdrawn will be adjusted for inflation, eliminating the need to pay additional inflation compensation as was the case for withdrawals made between January 1st and February 28th.

The highest upward adjustment was 5.63 times.

According to Circular No. 01/2025/TT-BLDTBXH, the monthly salary on which social insurance contributions were paid is adjusted according to the following formula:

Người rút BHXH một lần được nhận tiền bù trượt giá từ ngày 28/2 - 2

In 2025, the monthly salary used for calculating social insurance contributions will be adjusted upwards from 1 to 5.63 times, depending on the year of contribution. Specifically, see the following table:

Người rút BHXH một lần được nhận tiền bù trượt giá từ ngày 28/2 - 3

For those participating in voluntary social insurance, the monthly income on which social insurance contributions have been paid is adjusted according to the following formula:

Người rút BHXH một lần được nhận tiền bù trượt giá từ ngày 28/2 - 4

In 2025, the monthly income used for calculating social insurance contributions will be adjusted upwards from 1 to 2.21 times, depending on the year of contribution. Specifically, see the following table: