Do business households have to participate in social insurance contributions?
Previously, according to the 2014 Law on Social Insurance, individual business households were not subject to compulsory social insurance participation. If there is a need, individual business households can participate in voluntary social insurance.
However, from July 1, 2025, based on Clause 1, Article 2 of the 2024 Social Insurance Law, it is stipulated:
1. Workers who are Vietnamese citizens who are subject to compulsory social insurance include:
m) The business household owner of the business household registered for business participates in accordance with the Government's regulations.
Thus, from July 1, 2025, in addition to paying compulsory insurance for employees, business households are also subject to compulsory social insurance contributions.
How much is a business household owner who does not pay social insurance fined?
According to Article 39 of Decree 12/2022/ND-CP, the penalty levels related to compulsory social insurance contributions are as follows:
6. A fine of between 18% and 20% of the total amount to be paid for compulsory social insurance and unemployment insurance at the time of making the administrative violation record, but not exceeding 75,000,000 VND for employers who do not pay compulsory social insurance and unemployment insurance for all employees who are subject to compulsory social insurance and unemployment insurance but have not reached the level of criminal prosecution.
7. A fine of between 500,000 VND and 75,000 VND shall be imposed on employers for one of the following acts:
a) Evading compulsory social insurance and unemployment insurance contributions but not to the extent of criminal prosecution;
10. Remedial measures
a) Forcing employers to pay the full amount of compulsory social insurance and unemployment insurance that must be paid to the social insurance agency for violations specified in Clauses 5, 6, 7 of this Article;
b) Forcing employers to pay interest equal to 2 times the average investment interest rate of the social insurance fund of the immediately preceding year calculated on the amount, time of late payment, non-payment, evasion of payment, appropriation of payment money; if not implemented, at the request of competent persons, banks, other credit institutions, the State Treasury is responsible for deducting from the employer's deposit account to pay the amount not paid, late payment and the interest of this amount calculated according to the highest demand deposit interest rate of state-owned commercial banks announced at the time of sanctioning into the account of the social insurance agency for violations specified in Clauses 5, 6, 7 of this Article from 30 days or more.
Thus, in case of not paying compulsory social insurance, business households may be fined for violations as follows:
* Fines:
A fine of 18 - 20% of the total amount of social insurance and unemployment insurance payable (maximum 75,000 VND) if the business household owner does not pay social insurance and unemployment insurance, not to the extent of criminal prosecution.
A fine of 50,000,000 - 75,000,000 VND if the business household owner evades social insurance and unemployment insurance contributions but has not been criminally handled.
* Remedial measures:
- Employers (NSDLĐ) must pay the full amount of social insurance and unemployment insurance that is still insufficient.
- Employers must pay interest equal to 2 times the investment interest rate of the previous year's social insurance fund calculated on the amount and time of late/evaded payment. If not done on their own, banks/credit institutions will deduct from the employer's account the amount of debt and the highest non-term interest rate (applied when violating for 30 days or more).
