The Vietnamese Government’s electronic information portal published a query from Ms. Hue Quyen (Hung Yen): “The 2024 Social Insurance Law expands the scope of mandatory social insurance participation, including individual business owners. She asks, what is the mandatory social insurance contribution rate for individual business owners?”
In response, the Hung Yen Social Insurance Department provided the following clarification:
According to Article 2(m) of the 2024 Social Insurance Law and Article 3(2a) of Decree No. 158/2025/NĐ-CP, individual business owners with registered businesses and tax declarations are subject to mandatory social insurance participation from July 1, 2025. Exceptions include those already receiving pensions, monthly social insurance benefits, or those who have reached the retirement age as stipulated.
Individual business owners may choose their income level as the basis for social insurance contributions, provided it is not less than the reference level (currently 2,340,000 VND) and not more than 20 times the reference level at the time of contribution.
Minimum Contribution: Based on the current reference level, the minimum social insurance and health insurance contribution for individual business owners is 690,300 VND/month (equivalent to 2,340,000 VND x 29.5%).
Detailed information regarding contribution levels, payment methods, deadlines, submission formats, and application procedures is outlined in Official Letter No. 162/BHXH-QLT dated August 14, 2025, issued by the Hung Yen Social Insurance Department on the implementation of mandatory social insurance collection for individual business owners with registered businesses and tax declarations.
Under the 2024 Social Insurance Law, penalties for non-compliance with social insurance participation requirements include:
– Monetary Penalties:
A fine of 18-20% of the total social insurance and unemployment insurance contributions due (up to 75 million VND) if the individual business owner fails to contribute to social insurance or unemployment insurance, provided it does not constitute a criminal offense.
A fine of 50-75 million VND if the individual business owner evades social insurance or unemployment insurance contributions but has not been criminally prosecuted.
– Remedial Measures:
Employers must pay the outstanding social insurance and unemployment insurance contributions.
Employers must pay interest at twice the investment rate of the social insurance fund from the previous year, calculated on the amount and duration of delayed or evaded contributions. If not paid voluntarily, banks or credit institutions will deduct the owed amount plus interest at the highest non-term deposit rate (applicable for violations lasting 30 days or more).
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