According to Vietnam Social Insurance, from July 1, the amended Law on Social Insurance 2024 and the Law amending and supplementing a number of articles of the Law on Health Insurance 2024 (Health Insurance Law 2024) officially took effect.
In particular, these two Laws have clarified the acts of late payment, evasion of social insurance and health insurance payment and further strengthened sanctions for these acts.
Clearly stipulate sanctions and add new penalties
One of the notable new points of the Social Insurance Law 2024 and the Health Insurance Law 2024 is the clear distinction between two violations of late payment and evasion of social insurance and health insurance payment, helping authorities have a more solid legal basis to determine violations and apply appropriate sanctions:
Late payment of social insurance and health insurance is the act of: Not paying or not fully paying the social insurance and health insurance amount from the date of payment of health insurance at the latest; Not making a list or not making a complete list of employees subject to social insurance and health insurance for 60 days from the date of expiration of the prescribed period.
To pay social insurance and health insurance is the act of an employer: Not making a list or making an incomplete list of people who must participate in social insurance and health insurance after 60 days from the date of the prescribed expiration date; Not paying or not fully paying the registered amount of social insurance and health insurance after 60 days from the date of social insurance and health insurance payment no later than the prescribed date and has been urged by the competent authority according to regulations.
According to the provisions of Articles 40 and 41 of the Social Insurance Law 2024 and Articles 49 of the Health Insurance Law 2024, the sanctions are strengthened and specified compared to the Social Insurance Law and the current Health Insurance Law:
For the act of late payment or evasion of social insurance and health insurance: Compulsory to pay the full amount of late payment or evasion; Pay an additional amount equal to 0.03%/day calculated on the amount of late social insurance, health insurance and evasion and the number of days of late payment or evasion of payment to the social insurance and health insurance fund; Be administratively sanctioned according to the provisions of law; Not considered for emulation titles and forms of commendation.
Notably, for evasion of payment alone, employers can also be prosecuted for criminal liability according to the provisions of law. This is a new point, clearly demonstrating the strictness in state management of social insurance and health insurance.
Previously, according to Article 122 of the Law on Social Insurance 2014 the penalty for late payment or evasion of payment is to pay interest equal to two times the average investment interest rate of the Social Insurance and Unemployment Insurance Fund of the previous year, calculated on the amount and time of late payment; according to Article 49, the Law on Health Insurance 2014 has a similar penalty for late payment of full payment and payment of interest equal to two times the interbank interest rate calculated on the amount and time of late payment.
It can be seen that the new regulation with a fixed interest rate of 0.03%/day is considered to be more strict, in the direction of increasing the total fine over time if the employer does not fully fulfill its obligations to pay social insurance and health insurance for employees. In particular, sanctions will be increased in the process of prosecuting criminal liability for evasion of social insurance and health insurance payments.
The application of fixed daily penalty interest rates, combined with strong sanctions in the two Laws this time, is expected to contribute effectively to improving deterrence, preventing late payment and evasion of social insurance and health insurance, and enhancing compliance with the law on social insurance and health insurance in the coming time.
Handling late payment, evasion of social insurance and health insurance arising before July 1
The two Laws on Social Insurance and Health Insurance this time also have specific transitional provisions for uncomplete social insurance and health insurance debts as of June 30, 2025, specifically as follows:
Clause 12, Article 141, Law on Social Insurance 2024 stipulates: "For the amount of compulsory social insurance and unemployment insurance that the employer is responsible for paying according to the provisions of Law No. 58/2014/QH13, Law on Employment No. 38/2013/QH13, but by the end of June 30, 2025 if it does not pay or does not pay in full, it will be handled according to the provisions on late payment and evasion of this Law".
Point d, Clause 5, Article 3, Law on Health Insurance 2024 stipulates: For the amount of health insurance that employers are responsible for paying according to the provisions of Law on Health Insurance No. 25/2008/QH12, which has been amended and supplemented with a number of articles of Law No. 32/2013/QH13, Law No. 46/201/201/201 2013, Law No. 97/2015/QH13, Law No. 35/2018/QH14, Law No. 68/2000/QH14 and Law No. 30/2023/QH15, but by June 30, 2025, if they do not pay or do not pay in full, they will be handled according to the provisions on late payment and evasion of this Law.
Vietnam Social Security believes that the current focus is that units and enterprises need to prioritize the final settlement of unpaid or partially paid social insurance, health insurance, and unemployment insurance debts as of June 30, 2025.
From July 1, 2025, these debts will be handled according to new regulations in Articles 40 and 41 of the Social Insurance Law 2024 and Articles 49 of the Health Insurance Law 2024 with stricter sanctions.
If employers do not promptly fulfill their payment obligations before the effective date of the two Laws, they will face greater legal risks and increased costs for handling violations.
