The New Regulations on Financial Mechanisms for Social Insurance, Unemployment Insurance, and Health Insurance

The Decree comprises 4 Chapters and 29 Articles, providing a financial framework for social insurance, unemployment insurance, and health insurance. It outlines the regulations for the organization and operation of these insurance schemes as stipulated by relevant laws.

Collection of Social Insurance, Unemployment Insurance, and Health Insurance Contributions through Dedicated Accounts

Regarding the financial mechanism for social insurance, unemployment insurance, and health insurance, the Decree stipulates the management of contributions and expenditures. The specific provisions are as follows:

The financial sources comprise the social insurance fund (including budgetary allocations from the state budget for pension and social insurance benefit payments to eligible recipients); the unemployment insurance fund; the health insurance fund; and other legitimate financial sources as prescribed by law.

Provincial 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 dedicated accounts 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 their respective participants as stipulated by relevant laws. On a monthly basis, 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 law. Health insurance contributions shall be transferred quarterly as per legal regulations.

The handling of late payment or evasion of social insurance, unemployment insurance, and health insurance contributions shall be determined following the relevant laws.

Upon receiving contributions from employers, the managing social insurance agency shall allocate them as follows:

Ensure sufficient collection of social insurance, unemployment insurance, and health insurance contributions, including late payment and evasion handling fees, as prescribed by law, for employees eligible for social insurance benefits or those terminating their labor contracts or work contracts. This ensures the timely provision of social insurance and unemployment benefits as stipulated.

The remaining amount shall be allocated in the following order: Collect sufficient health insurance contributions and late payment or evasion handling fees as prescribed (if any); collect unemployment insurance contributions and related handling fees as prescribed (if any); collect social insurance contributions and related handling fees as prescribed, allocating them to the respective components in the following order: sickness and maternity insurance fund, occupational accident and disease insurance fund, and retirement and survivor insurance fund (if applicable).

The amount 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 utilize these funds as follows:

Funds from handling late payment or evasion of social insurance contributions shall be allocated to the respective components in the order of priority mentioned above.

Funds from handling late payment or evasion of health insurance contributions shall be added to the health insurance reserve fund.

Funds from handling late payment or evasion of unemployment insurance contributions shall be added to the unemployment insurance fund.

Expenditures for Social Insurance, Unemployment Insurance, Health Insurance Benefits, Organization, and Operations

The utilization of social insurance, unemployment insurance, and health insurance funds shall adhere to the relevant laws. Expenditures for the organization and operation of these insurance schemes shall follow the provisions of 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 execute expenditures for their organization and operation as stipulated in this Decree and shall be accountable for their financial decisions.

Regarding the transfer of funds for benefit payments and organizational and operational expenses, Article 9 of the Decree stipulates the following for budget allocations from the central budget for pension and social insurance benefit payments:

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 budget (including payment costs) into the social insurance fund for Vietnam Social Security to disburse the following month’s payments to beneficiaries as per Clause 2 of this Article.

b) In cases where the time for transferring social insurance funds from the state budget arrives, but the approved budget (including adjusted budget) has not been received, or the funds have not been transferred, or the amount to be paid for one month or the combined payment for two months as mentioned in Points a and c, Clause 2 of this Article exceeds the amount received as per Point a of this Clause, Vietnam Social Security shall utilize the social insurance fund (retirement and survivor fund) to ensure full and timely payments to pensioners and social insurance benefit recipients funded by the state budget.

Regarding expenditures from the social insurance fund and the unemployment insurance fund, Clause 2, Article 9 of the Decree stipulates:

a) On a monthly basis, Vietnam Social Security shall transfer funds to provincial social insurance agencies for benefit payments to beneficiaries. The amount transferred shall be based on the previous month’s expenditure and the expected expenditure for the upcoming month as planned by the unit. If there is no approved budget or if the expected expenditure exceeds the budget approved by the Prime Minister, Vietnam Social Security shall transfer funds to ensure full and timely benefit payments as prescribed by social insurance and unemployment insurance laws. The Director of Vietnam Social Security shall decide on the timing of fund transfers and benefit payments to ensure timeliness.

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 benefit payments in the following month. The amount transferred shall be equal to the average monthly expenditure of the approved annual budget. If there is no approved budget, the amount transferred shall be equal to the average monthly expenditure of the previous year’s budget. If there are changes in the monthly payment needs, 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) If 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 combined payments 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 refund 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 expenditure on medical examination and treatment, the transfer of funds shall comply with the provisions of health insurance law.

Before the 10th of each month, Vietnam Social Security shall transfer funds for organizational and operational expenses to social insurance units

Regarding organizational and operational expenses, the Decree stipulates:

a) Before the 10th of each month, Vietnam Social Security shall transfer funds for organizational and operational expenses for the month from the consolidated payment account to the organizational and operational expense accounts of its directly affiliated units that are allowed to open accounts, provincial social insurance agencies, the Social Insurance Agency of the People’s Army, the Social Insurance Agency of People’s Public Security, the unemployment insurance organization, and the organization under the Ministry of Home Affairs that are assigned. The amount transferred shall be equal to the average monthly expenditure of the approved organizational and operational expense budget (excluding the expenses specified in Points b, c, and d of this Clause). If there is no approved budget, the amount transferred shall be equal to the average monthly expenditure of the previous year’s organizational and operational expense budget (excluding the expenses specified in Points b, c, and d of this Clause).

b) For information technology application expenses incurred 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 upon their request, 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 budget for information technology application expenses approved by the competent authority, and within 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, the management, use, and settlement of information technology application expenses in accordance with the regulations.

c) For information technology application expenses, renovation, upgrading, and expansion expenses of the headquarters of the social insurance agency, and other expenses incurred 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 provincial social insurance agencies in accordance with the progress of implementation and relevant legal regulations.

d) For investment development expenses, the advance, payment, and final settlement of capital shall comply with the laws on public investment and construction for state agencies that are assigned the medium-term public investment plan by the Prime Minister to implement projects from legitimate capital sources of state agencies. At the beginning of the year, if there is no approved budget by the competent authority, based on the investor’s proposal, 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 to pay for the ongoing projects in the medium-term public investment plan that has been approved by the competent authority. The amount of advanced capital for projects shall not exceed 20% of the approved investment development expenditure budget of the previous year by the competent authority. After receiving the approved budget from the competent authority, the Director of Vietnam Social Security shall be responsible for recovering all advanced amounts 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 that arose before December 31, 2014, the social insurance agency shall be responsible for detailed monitoring and accounting as prescribed.