Business households that are subject to compulsory social insurance (BHXH) but do not pay social insurance for themselves or for employees according to regulations may be administratively fined up to 75 million VND, and at the same time be retroactively collected the entire amount of money owed and late payment interest calculated.
According to point m, clause 1, Article 2 of the 2024 Law on Social Insurance, business households of business households registered for business are subject to compulsory social insurance according to the Government's regulations.
Specifically, Article 3 of Decree 158/2025/ND-CP stipulates that business households subject to compulsory social insurance include:
- Business household owners of business households registered to pay taxes according to the declaration method;
- Business households with business registration but paying taxes by other methods will be subject to compulsory social insurance from July 1, 2029.
In addition to the obligation to participate in compulsory social insurance for themselves, business households also have to pay social insurance for employees who are eligible to participate according to regulations.
Not paying social insurance may be fined up to 75 million VND
According to Article 39 of Decree 12/2022/ND-CP, acts of not paying, late paying or evading compulsory social insurance can be administratively sanctioned with many different levels. Specifically:
- A fine of 12% to 15% of the total amount to be paid for compulsory social insurance at the time of being recorded, but not exceeding 75,000 VND.
- A fine of 18% to 20% of the total amount to be paid for compulsory social insurance when not paying compulsory social insurance but not to the extent of criminal prosecution.
- A fine of between 50,000 VND and 75,000 VND for evading social insurance contributions but not serious enough to be prosecuted for criminal liability.
In addition to fines, functional agencies also require employers to pay the remaining social insurance amount sufficiently to the social insurance agency.
Could be forced to deduct money from bank accounts
According to current regulations, violators must also 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 and time of late payment, non-payment or evasion.
If not implemented, competent authorities may request banks, credit institutions or the state treasury to directly deduct money from the employer's account to pay the remaining social insurance amount and interest arising for violations from 30 days or more.
According to the provisions of Article 6 of Decree 12/2022/ND-CP, the above-mentioned penalty level applies to individuals. In case an organization has the same violation, the penalty level is 2 times the penalty level for individuals.
