Decree 296/2025/NĐ-CP issued by the Government regarding the enforcement of administrative penalty decisions will take effect from January 1, 2026. It outlines procedures for verification, decision-making, and income deduction rates for individuals who fail to comply with penalty decisions.
This decree replaces Decree 166/2013/NĐ-CP, introducing stricter regulations on information disclosure and deduction rates to enhance enforcement effectiveness.
Who is Subject to Income Deduction Measures?
According to the decree, income deduction measures apply to two groups: (1) Civil servants, public employees, military personnel, individuals working in secure organizations, employees receiving salaries or income from agencies, units, or organizations, and seasonal workers; (2) Retirees receiving pension benefits.
This provision ensures coverage of both active workers and retirees who are still obligated to comply with penalty decisions.
Income Verification Process
Individuals subject to enforcement must provide information on their salary, income, and pension benefits within 5 working days of receiving the request. Simultaneously, the enforcing authority will verify the information and prepare a verification report as the basis for the decision.
Starting in 2026, a maximum deduction of 30% of salary and 50% of other income will apply to individuals who fail to comply with penalty decisions.
If an individual fails to comply with the penalty decision within the specified timeframe, the competent authority will send a written request to the individual, their salary management unit, or relevant organizations/individuals to provide information within 3 working days. All parties are legally responsible for the accuracy of the information provided.
Issuance of Enforcement Decisions
After verification, the competent authority must issue an enforcement decision within 2 working days. The decision must specify: the amount to be deducted, the reason for deduction, the name of the income management unit, the State Treasury account for payment, and the implementation timeline.
In cases requiring simultaneous verification of both income and assets, the deadline for issuing the enforcement decision is calculated from the date when complete information is confirmed.
Maximum Deduction of 30% Salary and 50% Other Income
The decree sets specific deduction rates to ensure deterrence while maintaining minimum living conditions for the individual and their dependents:
For salaries and pensions: deductions are capped at 30% of the monthly net income (after deductions for insurance and personal income tax). For other income sources: deductions are capped at 50% of the total monthly income.
Deductions may be applied multiple times until the individual fulfills their payment obligation under the penalty decision. Enforcement decisions issued or completed before January 1, 2026, with pending appeals, will be resolved under the Law on Handling Administrative Violations and Decree 166/2013/NĐ-CP.
Decree 296/2025/NĐ-CP is considered a significant improvement in the legal framework for handling administrative violations, enhancing feasibility, transparency, and effectiveness in enforcing penalty decisions.
