The Decree consists of 4 Chapters and 29 Articles stipulating the financial mechanism for social insurance, unemployment insurance, and health insurance.
This Decree consists of 4 Chapters and 29 Articles, providing a financial mechanism for social insurance, unemployment insurance, and health insurance; and stipulating the organization and operation of social insurance, unemployment insurance, and health insurance in accordance with the Law on Social Insurance, the Law on Health Insurance, and the Law on Employment.
Collection of Social Insurance, Unemployment Insurance, and Health Insurance Contributions through the Regime Collection Account
Regarding the financial mechanism for social insurance, unemployment insurance, and health insurance, the Decree regulates the management of contributions, benefits, and other related aspects. Here are the specific provisions:
The financial sources comprise the social insurance fund (including the budgetary funds allocated by the State budget for pension and social insurance allowance payments to eligible beneficiaries); the unemployment insurance fund; the health insurance fund; and other legitimate financial sources as prescribed by law.
Provincial-level social insurance agencies, social insurance branches, and organizations supporting the development of insured entities shall collect social insurance, unemployment insurance, and health insurance contributions through the regime collection account and transfer them to the consolidated payment account as directed by Vietnam Social Security.
The Social Insurance Agency of the People’s Army and the Social Insurance Agency of the People’s Public Security shall collect social insurance, unemployment insurance, and health insurance contributions from the subjects of participation as prescribed by the laws on social insurance, unemployment insurance, and health insurance. Every month, these agencies shall transfer the collected social insurance and unemployment insurance contributions for the month to the consolidated payment account of Vietnam Social Security in accordance with the laws on social insurance and unemployment insurance. As for health insurance contributions, the transfer shall be made quarterly as per the Law on Health Insurance.
The handling of late payment or evasion of social insurance, unemployment insurance, and health insurance contributions shall be determined in accordance with the laws on social insurance, unemployment insurance, and health insurance.
Upon receiving the contributions from the employers, the social insurance agency directly managing the participants shall allocate the funds as follows:
Collect sufficient social insurance, unemployment insurance, and health insurance contributions, including those for handling late or evaded payments as prescribed, from employees who meet the conditions for enjoying social insurance benefits or whose labor contracts or work contracts have been terminated, in order to promptly settle social insurance and unemployment insurance regimes for employees in accordance with the law (if any).
The remaining amount shall be allocated in the following order: Collect sufficient health insurance contributions and handle late or evaded health insurance payments as prescribed (if any); collect sufficient unemployment insurance contributions and handle late or evaded unemployment insurance payments as prescribed (if any); collect social insurance contributions and handle late or evaded social insurance payments as prescribed (if any) into the component funds in the following order: Collect sufficient contributions and handle late or evaded payments into the sickness and maternity fund, then into the occupational accident and disease fund, and finally into the retirement and survivor fund (if any).
The amount of money collected from handling late payment or evasion of social insurance, unemployment insurance, and health insurance contributions shall be settled separately by the social insurance agency, the Social Insurance Agency of the People’s Army, and the Social Insurance Agency of the People’s Public Security with Vietnam Social Security. Vietnam Social Security shall then consolidate and implement the following:
The money from handling late payment or evasion of social insurance contributions shall be supplemented to the component funds in the order of priority mentioned above.
The money from handling late payment or evasion of health insurance contributions shall be added to the health insurance reserve fund.
The money from handling late payment or evasion of unemployment insurance contributions shall be added to the unemployment insurance fund.
Payment of Regimes, Organization, and Operation of Social Insurance, Unemployment Insurance, and Health Insurance
The use of social insurance, unemployment insurance, and health insurance funds shall be governed by the laws on social insurance, unemployment insurance, and health insurance. As for the expenditure on the organization and operation of social insurance, unemployment insurance, and health insurance, it shall comply with Article 14 of this Decree.
The social insurance agency, the Social Insurance Agency of the People’s Army, the Social Insurance Agency of the People’s Public Security, the unemployment insurance organization, and the organization under the Ministry of Home Affairs shall implement the expenditure on the organization and operation in accordance with this Decree and shall be responsible before the law for their expenditure decisions.
Regarding the transfer of funds for regime payment and organization and operation, Article 9 of the Decree stipulates the following regarding the budgetary funds for pension and social insurance allowance payments from the central budget:
a) Before the 25th of each month, the Ministry of Finance shall transfer an amount equivalent to the average monthly expenditure of the approved annual estimate (including the payment cost) into the social insurance fund for Vietnam Social Security to make payments in the following month to the beneficiaries as specified in Point a, Clause 2 of this Article.
b) In case the time for transferring the social insurance funds from the State budget arrives but there is no approved estimate (including adjusted estimate) from the competent authority, or the funds have not been received from the State budget, or the amount to be paid for one month or the lump-sum payment for two months to the beneficiaries as specified in Points a and c, Clause 2 of this Article exceeds the funds received as prescribed in Point a of this Clause, Vietnam Social Security shall use the social insurance fund (retirement and survivor fund) to make full and timely payments to the beneficiaries of pensions and social insurance allowances from the State budget.
Regarding the expenditure for regime payment from the social insurance fund and the unemployment insurance fund, Clause 2, Article 9 of the Decree stipulates:
a) Every month, Vietnam Social Security shall transfer funds to the provincial-level social insurance agencies for regime payments to the beneficiaries. The amount of transferred funds shall be determined based on the previous month’s expenditure and the unit’s planned expenditure for the following month. In case there is no approved estimate from the competent authority or the estimated expenditure increases compared to the estimate approved by the Prime Minister, Vietnam Social Security shall transfer funds to ensure full and timely payments to the beneficiaries in accordance with the laws on social insurance and unemployment insurance. The Director of Vietnam Social Security shall decide on the time of fund transfer and regime payment to ensure timeliness for the beneficiaries.
b) Before the 25th of each month, Vietnam Social Security shall transfer funds to the Social Insurance Agency of the People’s Army and the Social Insurance Agency of the People’s Public Security for regime payments to the beneficiaries in the following month. The amount of transferred funds shall be equal to the average monthly expenditure of the approved annual estimate, or if there is no approved estimate, it shall be equal to the average monthly expenditure of the estimate of the previous year. In case there is a change in the expenditure needs for the month, the Social Insurance Agency of the People’s Army and the Social Insurance Agency of the People’s Public Security shall send a written request to Vietnam Social Security.
c) In case the payment time is close to the Tet holiday or during the payment period, there is a natural disaster, an epidemic, or an unavoidable reason, or as directed by the competent authority, the Director of Vietnam Social Security shall consider and decide to transfer funds for lump-sum payment for two months to the beneficiaries.
d) The Social Insurance Agency of the People’s Army and the Social Insurance Agency of the People’s Public Security shall transfer the remaining funds (if any) to Vietnam Social Security after the Ministry of National Defense and the Ministry of Public Security have audited the settlement of collection and payment regimes of their subordinate units.
For health insurance funds for medical examination and treatment, the transfer of funds shall comply with the Law on Health Insurance.
Before the 10th of each month, Vietnam Social Security shall transfer funds for organization and operation to the social insurance units.
Regarding the expenditure for organization and operation, the Decree stipulates:
a) Before the 10th of each month, Vietnam Social Security shall transfer the funds for organization and operation for the month from the consolidated payment account to the organization and operation accounts of its directly affiliated units that are allowed to open accounts, the provincial-level social insurance agencies, the Social Insurance Agency of the People’s Army, the Social Insurance Agency of the People’s Public Security, the unemployment insurance organization, and the organization under the Ministry of Home Affairs that are assigned. The amount of transferred funds shall be equal to the average monthly expenditure of the approved annual estimate for organization and operation (excluding the expenditure specified in Points b, c, and d of this Clause). In case there is no approved estimate from the competent authority, the amount of transferred funds shall be equal to the average monthly expenditure of the estimate of the previous year (excluding the expenditure specified in Points b, c, and d of this Clause).
b) For expenditure on information technology application implemented by the Social Insurance Agency of the People’s Army, the Social Insurance Agency of the People’s Public Security, the unemployment insurance organization, and the organization under the Ministry of Home Affairs that are assigned, Vietnam Social Security shall transfer funds according to the requests of these units, in accordance with the progress of implementation and the plan for using the funds of the project or task, within the scope of the annual estimate of expenditure approved by the competent authority and the time limit of the information technology application plan approved or adjusted (if any) by the competent authority. The Social Insurance Agency of the People’s Army, the Social Insurance Agency of the People’s Public Security, the unemployment insurance organization, and the organization under the Ministry of Home Affairs that are assigned shall be responsible before the law for the dossier of requesting fund transfer, as well as the management, use, and settlement of expenditure on information technology application in accordance with the regulations.
c) For expenditure on information technology application, renovation, upgrading, and expansion of the headquarters of the social insurance agency, and other contents implemented by Vietnam Social Security (centralized procurement of assets, goods, and services), Vietnam Social Security shall transfer funds to its directly affiliated units that are allowed to open accounts and the provincial-level social insurance agencies in accordance with the progress of implementation and the relevant legal regulations.
d) For investment expenditure, the advance, payment, and settlement of capital shall comply with the laws on public investment and construction for State agencies that are assigned the State budget plan for investment projects from legitimate sources of State agencies. At the beginning of the year, if there is no approved estimate from the competent authority, based on the investor’s request, and depending on the value of the completed and eligible volume for payment, the Director of Vietnam Social Security shall decide to advance the capital plan for ongoing investment projects included in the medium-term public investment plan approved by the competent authority. The amount of advanced capital for each project shall not exceed 20% of the approved investment expenditure estimate of the previous year by the competent authority. After receiving the approved estimate from the competent authority, the Director of Vietnam Social Security shall be responsible for recovering all the advanced amount within the fiscal year.
This Decree takes effect from the signing date (August 26, 2025) and applies from July 1, 2025. For amounts payable to beneficiaries of social insurance and unemployment insurance regimes arising before December 31, 2014, the social insurance agency shall be responsible for detailed monitoring and accounting in accordance with the regulations.
