Ms. Duong Thi Minh Chau - Head of the Department of Propaganda and Support for Social Insurance participants (SI) of Hanoi City said that according to the Social Insurance Law 2024, from July 1, 2025, business owners who register to do business and pay taxes under the declaration method are subject to compulsorySI (remaining household owners, applicable from July 1, 2025).
And according to Article 39 of Decree No. 12/2022/ND-CP dated January 17, 2022 of the Government, the fine for employers (including business owners) who violate regulations on compulsory social insurance payment is divided into three specific groups of acts as follows:
Firstly, a fine of 12% to 15% of the total amount payable for compulsory social insurance and unemployment insurance, but not exceeding VND 75 million, for the following acts: late payment; payment not in accordance with the prescribed level; payment not enough for the number of people eligible to participate or appropriation of social insurance and unemployment insurance contributions of employees.
Second, a fine of 18% to 20% of the total amount of compulsory social insurance payable, but not exceeding VND 75 million, for cases of not paying social insurance and unemployment insurance for all employees subject to compulsory, but not to the extent of being prosecuted for criminal liability.
Third, a fine of VND 50 million to VND 75 million for evasion of social insurance and unemployment insurance payments or correction, and falsification of documents and papers in the dossier to propose applying a lower contribution rate than the prescribed to the occupational accident and disease insurance fund, but these cases are not yet subject to criminal prosecution.
Also according to Article 39 of Decree 12/2022/ND-CP, in addition to fines, business owners who violate regulations on social insurance and unemployment insurance contributions must also take remedial measures. Specifically, forcing violators to pay the full amount of compulsory social insurance and unemployment insurance to the social insurance agency. At the same time, pay the interest equal to two times the average investment interest rate of the previous year in the Social Insurance Fund calculated on the amount and time of late payment, non-payment or evasion.
In case the violator does not fulfill his obligations, banks, credit institutions, and state treasures will deduct money from the business owner's account to transfer according to regulations to ensure the full recovery of social insurance and unemployment insurance contributions... This measure aims to increase the legitimate rights of employees, while demonstrating the strictness in implementing social insurance laws.
