Levels and deadlines for payment of compulsory social insurance premium for employees in Vietnam from July 1, 2025

Levels and deadlines for payment of social insurance premium for employees in Vietnam from July 1, 2025 (Image from the Internet)

On June 29, 2024, Hanoi passed the Law on Social Insurance 2024.

Levels and deadlines for payment of compulsory social insurance premium for employees in Vietnam from July 1, 2025

According to the provisions of Article 33 of the Law on Social Insurance 2024, the levels, methods and deadlines for payment of compulsory social insurance premium for employees in Vietnam from July 1, 2025 are as follows:

- The premium rates and methods for the subjects specified at points a, b, c, d, i, k, and l, Clause 1 and Clause 2, Article 2 of the Law on Social Insurance 2024 are stipulated as follows:

+ The monthly premium rate is 8% of the salary used as the basis for compulsory social insurance Premiums into the retirement and survivorship fund;

+ Premiums are made to the social insurance agency on a monthly basis.

In case the subjects specified at point a, Clause 1, Article 2 of the Law on Social Insurance 2024 receive wages based on products or quotas in enterprises, cooperative groups, cooperatives, cooperative unions, and business households operating in agriculture, forestry, fishery, and salt-making, Premiums are made on a monthly, quarterly, or semi-annual basis.

- The premium rates, methods, and deadlines for the subjects specified at point g, Clause 1, Article 2 of the Law on Social Insurance 2024 are stipulated as follows:

+ The monthly premium rate is 22% of the salary used as the basis for compulsory social insurance Premiums into the retirement and survivorship fund;

+ Premiums are made to the social insurance agency on a quarterly, semi-annual, annual basis, or in advance for the entire duration of the contract for Vietnamese employees working abroad; the Premiums deadline is no later than the last day of the month following the Premiums cycle.

If the labor contract is extended or a new labor contract is signed immediately in the host country, social insurance Premiums are made according to the method specified in point b, Clause 2, Article 33 of the Law on Social Insurance 2024 for the extended period or new contract or retrospective payment is made upon return to Vietnam.

- The premium rates, methods, and deadlines for the subjects specified at point h, Clause 1, Article 2 of the Law on Social Insurance 2024 are stipulated as follows:

+ The monthly premium rate is 22% of the salary used as the basis for compulsory social insurance Premiums into the retirement and survivorship fund;

+ Premiums are made through the agency or organization managing officials and public employees before they are appointed as members of the representative body of the Socialist Republic of Vietnam abroad, on a monthly, quarterly, or semi-annual basis; the Premiums deadline is no later than the last day of the month following the Premiums cycle.

- The premium rates, methods, and deadlines for the subjects specified at points m and n, Clause 1, Article 2 of the Law on Social Insurance 2024 are stipulated as follows:

+ The monthly premium rate is 3% of the salary used as the basis for compulsory social insurance Premiums into the illness and maternity fund, and 22% into the retirement and survivorship fund;

+ Premiums are made directly to the social insurance agency or via business households, enterprises, cooperatives, and cooperative unions involved in management on a monthly, quarterly, or semi-annual basis; the Premiums deadline is no later than the last day of the month following the Premiums cycle.

- The subjects specified at points a, b, c, d, and i, Clause 1 and Clause 2, Article 2 of the Law on Social Insurance 2024 who do not receive wages for 14 or more working days in a month are not required to make social insurance Premiums for that month, except where the employer and employee agree to make social insurance Premiums for that month based on the nearest month's Premiums basis.

The subjects specified at points d, e, and k, Clause 1, Article 2 of the Law on Social Insurance 2024 who do not work for 14 or more working days in a month shall comply with the regulations of the Government of Vietnam.

- In the first month of employment or the first month of returning to work, if the employee is on sick leave for 14 or more working days, social insurance Premiums are still required for that month.

- In cases where the remaining period of compulsory social insurance Premiums is a maximum of 6 months short to qualify for retirement pensions or monthly death benefits, the employee or the employee's relatives may pay a lump sum for the missing months, at the monthly rate equivalent to the combined premium rate of the employee and employer before the employee stopped working or died, into the retirement and survivorship fund.

The continued Premiums period is not counted as time worked in heavy, hazardous, dangerous, or especially heavy, hazardous, dangerous occupations or jobs listed by the Minister of Labor, Invalids and Social Affairs, or as time worked in areas with exceptionally difficult socio-economic conditions.

Where an employee ceases compulsory social insurance Premiums and the remaining period of social insurance Premiums exceeds 6 months to qualify for retirement pensions, they are entitled to continue paying voluntary social insurance.

More details can be found in the Law on Social Insurance 2024 which comes into force in Vietnam from July 1, 2025.

The Law on Social Insurance 2014 and Resolution 93/2015/QH13 shall cease to be effective in Vietnam from the effective date of the Law on Social Insurance 2024.

Vo Tan Dai

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