Flexible Contribution Levels
According to Decree 158/2025/ND-CP, business owners who are registered and pay taxes through declaration will be required to participate in compulsory social insurance from July 1, 2025. Meanwhile, business owners who are registered but do not declare taxes will join from July 1, 2029.
Recently, the Ministry of Home Affairs sent a document to the Ministry of Finance proposing that Vietnam Social Security inform and guide business owners who have previously paid compulsory social insurance before July 1, recognizing their contribution history for benefit eligibility.
As a result, all compulsory social insurance contributions made before the new law takes effect will be preserved and considered for benefit eligibility, such as sick leave, maternity leave, and retirement. Those who have already met the eligibility requirements before July 1 will have their benefits processed from the date of eligibility, without any interruption to their entitlements.
Social Insurance staff in Da Nang City advise people on their rights and benefits when participating in voluntary social insurance
Mr. Nguyen Cong Dinh, Deputy Director of Hanoi Social Insurance, said that as of early June 2025, the city had over 1,000 business owners who had paid compulsory social insurance for over 6,000 employees. Some business owners have a clear understanding of the importance of social insurance and health insurance.
“Hanoi Social Insurance is currently focusing on encouraging more than 1,000 business owners who have not yet participated in compulsory social insurance. At the same time, we are coordinating with the Tax Department to review households with an annual revenue of over VND 1 billion and invoice issuance, who are subject to compulsory social insurance contributions,” said Mr. Dinh.
According to the new regulations, business owners who are registered, regardless of whether they employ laborers or not, are subject to compulsory social insurance contributions. The monthly contribution is 25% of the salary chosen by the contributor, with 22% going to the retirement and survivor benefit fund and 3% to the sick leave and maternity fund. The minimum contribution salary is equal to the reference salary, and the maximum is 20 times this amount. Business owners can choose to contribute monthly, quarterly, or every six months depending on their needs.
Securing the Future
Despite the flexibility in contribution levels and methods, Ms. Tran Hong Van, a food trader at a wholesale market in Hanoi, considers this a significant expense due to her unstable income. “For now, I’m doing thorough research,” she said.
Mr. Do Manh Hung, the owner of a cafe, believes that this policy is worth supporting because it is very reasonable. While the monthly contribution is not insignificant, having a retirement pension and a health insurance card in the future provides peace of mind. Similarly, Mr. Tran Tung, a 42-year-old owner of an electrical appliance shop in Tuong Mai Ward, Hanoi, who has been participating in voluntary social insurance for five years, considers this a stable form of savings for the future if an appropriate contribution level is chosen. He is now waiting for guidance to switch to compulsory social insurance participation.
According to Mr. Tung, business owners are a diverse group, ranging from small grocery stores to large-scale production facilities, but they have largely been absent from social insurance participation in recent years. Merely relying on penalties or general propaganda will not yield high effectiveness. It is crucial to “explain correctly and reach out adequately” so that people understand the long-term benefits of participation.
Mr. Nguyen Hong Cuong, Deputy Head of the Premium Collection and Development Management Division of Vietnam Social Security, suggested that local social insurance agencies closely coordinate with business registration and tax agencies to share information and data on business owners. Based on this data, social insurance agencies will categorize subjects, provide guidance, and urge business owners to declare and register for social insurance in accordance with legal regulations and the roadmap for compulsory social insurance participation.
“Social insurance brings many practical benefits, such as sick leave, maternity leave, work injury benefits, and retirement benefits. When people understand the effectiveness of these benefits, they will voluntarily comply for their own benefit,” said a representative of Hanoi Social Insurance.
Regulations to Note
According to Decree 12/2022/ND-CP, business owners who fail to participate in compulsory social insurance as required may be fined up to VND 75 million. The fine ranges from 12% to 20% of the total amount due, depending on the violation, such as late payment, underpayment, non-payment, or evasion of social insurance contributions. In addition to the fine, the business owner must also pay the outstanding amount along with interest at twice the social insurance fund investment rate. If they do not voluntarily rectify the violation, the authorities may request the bank to deduct the amount from their account.
According to the Social Insurance Law, business owners have two ways to declare and pay compulsory social insurance contributions. First, they can register along with their employees who work under contracts, submitting declarations and lists of laborers to the social insurance agency at their place of residence or business. Second, they can submit the documentation directly, without going through the business. Participation must be done at least 30 days after becoming subject to compulsory social insurance contributions, and when the decree takes effect. For laborers working under non-full-time contracts, the responsibility for declaration falls on the employer.
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