The one-time social insurance (BHXH) withdrawal scheme is a crucial policy designed to support employees who choose to receive their contributions back. Notably, starting from February 28, 2025, employees withdrawing one-time social insurance will benefit from an inflation adjustment factor, which helps offset the currency’s depreciation over time.
What is the Inflation Adjustment Factor?
The inflation adjustment factor, also known as the adjustment level for monthly wages and incomes used for social insurance contributions, is applied to calculate the one-time social insurance benefit amount. This tool helps compensate for the currency’s depreciation over the years, ensuring benefits for employees.
The one-time social insurance benefit amount depends on the duration of social insurance contributions and the average monthly wage/income contributed by the employee. With the addition of the inflation adjustment factor, this amount is typically higher than the original actual amount.
Beneficiaries of Inflation Adjustment Payouts
According to Circular No. 01/2025/TT-BLĐTBXH, issued on January 10, 2025, the inflation adjustment factor will be applied starting from February 28, 2025. This means:
- Before February 28, 2025: Cases where one-time social insurance benefit applications were processed did not include the inflation adjustment factor. However, the social insurance agency will make supplementary payments for the difference after the Circular takes effect.
- From February 28, 2025, onwards: Employees processing one-time social insurance benefits will have the inflation adjustment factor directly applied, without needing to wait for supplementary payments.
Wage and Income Adjustment Levels in 2025
Circular No. 01/2025/TT-BLĐTBXH clearly stipulates the adjustment levels for monthly wages and incomes used for social insurance contributions. Specifically:
For Participants in Mandatory Social Insurance
- Adjustment levels increase from 1 to 5.63 times depending on the year of social insurance contribution. For example:
- 2015: Adjustment factor is 2.4 times.
- 2020: Adjustment factor is 1.3 times.
- 2024: Adjustment factor is 1 time.
For Participants in Voluntary Social Insurance
- Adjustment levels increase from 1 to 2.21 times corresponding to the year of social insurance contribution.
Significance of the Inflation Adjustment Policy
The inflation adjustment policy not only secures financial benefits for employees but also demonstrates the state’s commitment to protecting the real value of social insurance contributions. This is especially crucial amidst inflation and economic fluctuations.
Conclusion
The application of the inflation adjustment factor from February 28, 2025, marks a significant step forward in enhancing benefits for employees making one-time social insurance withdrawals. To ensure they receive their full and rightful benefits, employees should thoroughly research the relevant regulations or contact their local social insurance agency directly.
Reference Source: Ministry of Labor – Invalids and Social Affairs
