Ministry of Finance proposes to expand the subjects participating in compulsory social insurance

Xuyên Đông |

The Ministry of Finance contributed opinions to supplement the regulation that business households with revenue over 20 million VND/month will be required to pay compulsory social insurance.

Contributing opinions to the draft revised Law on Social Insurance (BHXH), the Ministry of Finance proposed to amend and supplement point m, clause 1, Article 2 in the direction of expanding the subjects participating in compulsory social insurance.

Accordingly, "Business household owners of business households (including business households with business household registration and business households without business household registration) with revenue from 20 million VND/month or revenue from 60 million VND/quarter or more are subject to compulsory social insurance participation".

The Ministry of Finance said that tax laws have been amended and supplemented, stipulating that from January 1, 2026, business households with annual revenue of 1 billion VND or more are required to pay value-added tax and personal income tax (removing fixed tax).

According to the Ministry of Finance, this regulation leads to the forecast that the number of business households subject to compulsory social insurance participation will decrease significantly.

Regarding this content, the Ministry of Home Affairs said it did not accept opinions. According to the Ministry of Home Affairs, the Law on Social Insurance and guiding documents have stipulated that household heads with business registration are subject to compulsory social insurance participation and have regulations on implementation roadmap.

In addition to the above content, the Ministry of Finance also proposed to study expanding the subjects of compulsory social insurance participation for some groups of working age who are employed, receive salaries, wages, remuneration or income and have declared revenue or income to calculate and pay value-added tax, personal income tax, excluding farmers, foresters, fishermen, salt farmers in households.

According to the proposal, the first group is the tax declaration group based on revenue, including people with income from service provision, transportation, delivery, sales, brokerage, transaction connections through digital platforms, technology applications or flexible job models and similar activities.

For this group, the Ministry of Finance proposes that employees pay compulsory social insurance into the pension and survivorship fund; and at the same time be selected to contribute to the sickness and maternity fund.

The implementation plan is that when declaring revenue to the tax authority, employees simultaneously declare compulsory social insurance participation to the social insurance agency and transfer and pay money to the personal account managed by the social insurance agency, similar to paying social insurance to the supplementary pension fund.

The second group is the group that declares taxes based on salaries and wages, including people with labor relations with agencies, organizations, businesses, cooperatives, working for a term of less than 1 month; people working part-time, receiving salaries and wages by the hour, day or week with salaries and wages in the month lower than the reference level.

For this group, the Ministry of Finance proposes to pay compulsory social insurance into the pension and survivorship fund, the sickness and maternity fund. The contribution level to the funds is paid entirely by the employer or manager (100%), and the enjoyment of inherited social insurance regimes is in accordance with current regulations.

Regarding the implementation plan, employers or managers coordinate with employees to declare social insurance participation dossiers and send them to the social insurance agency.

When wages and salaries arise, employers or managers make compulsory social insurance contributions first, and at the same time pay wages and salaries to employees.

According to the Ministry of Finance, the above proposals are aimed at ensuring the goal of having 60% of the labor force participate in social insurance by 2030, expanding the coverage of social insurance and ensuring sustainable social security.

The Ministry of Finance believes that current regulations require employees to work under a fixed-term labor contract of 1 month or more or have an agreement with the employer with another name but with the nature of a new labor contract belonging to the subjects of compulsory social insurance participation.

This leads to many workers working in the form of hiring, contracting, service or flexible work on technology platforms not yet subject to compulsory social insurance, estimated at over 12 million people.

The Ministry of Finance also said that the regulation that salaries as the basis for compulsory social insurance contributions are monthly salaries and other supplementary amounts agreed to be paid regularly and stably in each pay period according to the labor contract has led to the phenomenon of subdividing and increasing allowances and subsidies that are not subject to social insurance contributions such as work performance bonuses, business performance bonuses, diligence bonuses, labor productivity bonuses, revenue bonuses or gasoline, telephone, travel, and housing support to avoid or reduce social insurance, unemployment insurance, and health insurance contributions.

According to the Ministry of Finance, in some businesses, gasoline and telephone support is 2-3 times higher than the salary for social insurance participation, but there are no regulations on the ceiling for these supports.

Regarding this proposal, the Ministry of Home Affairs said it did not accept it and stated that it is necessary to assess the impact on employers and employees, as well as the impact on the production and business activities of enterprises and the implementation of economic growth targets in the coming period.

Xuyên Đông
RELATED NEWS

Which business households are exempt from electronic invoices for 12 months

|

Business households in difficult and extremely difficult areas are exempt from electronic invoice services for 12 months according to new regulations.

Responding to suggestions to reduce the social insurance contribution period to below 15 years and still receive pensions

|

The draft revised Law on Social Insurance (BHXH) received many comments. Among them, many units contributed opinions to amend regulations on pension regimes.

Responding to reflections on business households and the elderly facing difficulties in paying electronic taxes

|

The Ministry of Finance has just responded to voters' reflections on the situation of elderly people and business households facing difficulties when paying taxes electronically.

Ministry of Finance responds to policies to support business households

|

The Ministry of Finance has just responded to voters in Ninh Binh province about policies to support business households and small and medium-sized enterprises.

Gia Lai points out many violations in arranging and handling surplus public land and housing

|

Gia Lai - Gia Lai Provincial Inspectorate points out many shortcomings and violations in the work of arranging and handling redundant public houses and land after arranging administrative units.

Minor car causes chain collision with 5 vehicles stopping at a red light in Lam Dong

|

Lam Dong - A car suddenly caused a series of accidents into 5 vehicles stopping at a red light in Ward 1, Bao Loc, causing 6 vehicles to be damaged and 3 people to suffer minor scratches.

On July 20, a seminar "Amendment to the Law on Environmental Protection: Opening up great opportunities for green agriculture" took place

|

On July 20, Lao Dong Newspaper will organize a seminar "Draft revised Law on Environmental Protection opens up opportunities for green agriculture".

Which business households are exempt from electronic invoices for 12 months

Song Anh |

Business households in difficult and extremely difficult areas are exempt from electronic invoice services for 12 months according to new regulations.

Responding to suggestions to reduce the social insurance contribution period to below 15 years and still receive pensions

Xuyên Đông |

The draft revised Law on Social Insurance (BHXH) received many comments. Among them, many units contributed opinions to amend regulations on pension regimes.

Responding to reflections on business households and the elderly facing difficulties in paying electronic taxes

Xuyên Đông |

The Ministry of Finance has just responded to voters' reflections on the situation of elderly people and business households facing difficulties when paying taxes electronically.

Ministry of Finance responds to policies to support business households

Xuyên Đông |

The Ministry of Finance has just responded to voters in Ninh Binh province about policies to support business households and small and medium-sized enterprises.