Agreement not to participate in compulsory social insurance, employees are fined up to 1 million VND

Legal Consulting Department of Lao Dong Newspaper answers:

Clause 2, Article 48, Decree 283/2026/ND-CP stipulating penalties for administrative violations in the fields of labor, social insurance, and Vietnamese workers working abroad under contracts (effective from September 10, 2026) stipulates as follows:

2. A fine of between 500,000 VND and 1 million VND shall be imposed for one of the following acts:

a) Employees agree with employers not to participate in compulsory social insurance, unemployment insurance or participate in the wrong subjects or participate not at the prescribed level or participate not on time as prescribed;

b) People who are subject to compulsory social insurance participation specified in points m, n, clause 1, Article 2 of the Law on Social Insurance, who do not register to participate in compulsory social insurance or register to participate not on time as prescribed or have not paid compulsory social insurance or paid compulsory social insurance after the social insurance contribution period specified in point b, clause 4, Article 33 of the Law on Social Insurance.

Clause 1, Article 7 of Decree No. 283/2026/ND-CP stipulates the level of fines and principles of application for repeated administrative violations as follows:

1. The penalty level stipulated for administrative violations specified in Chapter II, Chapter III and Chapter IV of this Decree is the penalty level for individuals; except for cases specified in: Article 8; Article 9; Clause 3, Article 10; Clauses 3, 4, 5, 6, Article 19; Clauses 2, 4, Article 36; Clause 1, Article 37; Clauses 1, 5, 6, 7, 8, Article 38; Clause 3, Article 42; Clauses 6, 11, Article 48; Article 49; Clauses 1, 2, 3, 4, 5, 6, 7, 8, Article 50; Clauses 1, 2, 3, 4, 5, 6, Article 52; Clause 4, Article 53 of this Decree is the penalty level for organizations. The penalty level for organizations is 2 times the penalty level for individuals.

Thus, from September 10, 2026, employees who agree with businesses not to participate in compulsory social insurance may be fined up to 1 million VND.