The Law on Social Insurance, the Law amending and supplementing specific articles of the Law on Health Insurance, and their respective governmental decrees come into effect on 1 July 2025. The new regulations expand the scope of compulsory participants in Social Insurance (“SI”) and Health Insurance (“HI”), and provide stricter measures for handling violations of mandatory contribution obligations for SI and unemployment insurance (“UI”) by employers ("Employers").

These regulations include the key changes as follows:

1. Expansion of employees subject to compulsory SI and HI contributions 

From 1 July 2025, the obligations for contribution to SI and HI are expanded to employees who work part-time under indefinite-term labor contracts or definite-term labor contracts of at least one month, provided their monthly salary is equal to or higher than the minimum SI contribution level (currently VND 2,340,000/month).

The contribution rate applicable to these employees will be the same as for full-time employees.

For employees under a probationary period, if the parties enter into an independent probation contract, the contribution obligation will not arise during such period. Conversely, if the probation period is included in a labor contract, the employee and the employer are required to contribute to the SI and HI for the entire probation period under the labor contract. 

2. New participants required to contribute to SI and HI

The new laws also require non-salaried corporate managers, controllers, and representatives of state or private capital in enterprises to participate in compulsory SI and HI. Under the Law on Enterprises 2020, “corporate managers” include the chairperson of the Members’ Council, members of the Members’ Council, the chairperson of the Board of Directors, members of the Board of Directors, the Director/General Director, and other managerial positions as prescribed in the company’s charters.

If an individual holds managerial roles in multiple enterprises, they are required to contribute to SI and HI only in the first enterprise where they participate in management. The employers are not responsible for contributing to the SI and HI for these individuals. 

These individuals may select their own base salary for SI and HI contributions, provided that the salary base is not lower than the minimum base salary and not exceeds twenty times such minimum base salary. The base salary may be adjusted after at least twelve (12) months of continuous contributions. Contributions can be made monthly, quarterly, semi-annually, directly to the Social Insurance Agency or through the enterprise where the individual serves as a manager. If registered through an enterprise, the enterprise will be responsible for submitting the registration documents on its behalf.

3. Distinction between “late payment” and “evasion” of SI and UI contributions

Compared to the Law on Social Insurance 2014, the Law on Social Insurance 2024 clearly defines acts considered " late contribution" and "evasion” of compulsory SI and UI contributions, as well as corresponding measures for handling these violations. 

A key change is the introduction of a 60-day threshold. Delays in SI or UI registration or payment of up to 60 days from the statutory due date are classified as “late payment”. If the delay exceeds 60 days or if the employer fails to register or underregisters employees, the conduct will be considered “evasion”.

Other common violations also considered “evasion” include: (i) declaring a salary base for SI contributions lower than the statutory minimum; (ii) failing to pay or underpaying registered SI or UI contributions more than 60 days after the due date, despite receiving a written reminder from the competent authority.

Subject to the substance and severity of the violation, the competent authority may subject the employer to administrative penalties and overdue interest of 0.03% per day on the unpaid amount. In more serious cases, where employers use fraudulent means to evade SI, HI, or UI contributions, criminal prosecution may be applicable.
In addition, employers are legally obligated to compensate employees for any losses arising from their failure to fulfil SI or UI contribution obligations.

4. Clarification of salary components forming the SI contribution base

Official Letter No. 1198/CTL&BHXH-BHXH dated 5 September 2025, issued by the Department of Wages and Social Insurance under the Ministry of Home Affairs, clarifies that the monthly salary forming the SI contribution base includes: 

• The time-based salary for the job or title under the company’s salary scale and labor contract;
• Allowances for working conditions, job complexity, living conditions, or labor attractives that have not been reflected or are not fully reflected in the base salary;
• Other fixed supplements that can be specifically determined and are paid regularly in each pay period.

The following benefits are excluded from the SI contribution base if recorded in a separate section of the labour contract: initiative bonuses; meal allowances; transportation, phone, housing, childcare allowances; payments for personal or family events (e.g., bereavement, marriage, birthday); and other welfare-related supports.

5. Recommendations for enterprises

Enterprises should:

• Review all labour records and contracts to ensure proper registration and SI, HI, and UI contributions for all employees, including those newly covered from 1 July 2025; and
• Establish internal compliance and monitoring mechanisms to mitigate risks of late or evasive contributions and prevent potential legal exposures.

Disclaimer: This publication is for general update. This should not constitute our professional advice for a particular case, entity, or individual. Should you need further information or our professional assistance for your specific cases, please feel free to contact us.

Credit: We extend our sincere appreciation to Senior Associate Vi Nguyen and Trainee Associate Nhi Doan for their valuable expertise and dedicated contributions to this article.