Business owners who do not pay social insurance will be fined up to 75 million VND
The amended Law on Social Insurance 2024 (effective from July 1) expands the scope of compulsory social insurance participation to 7 groups that have never or have not fully mentioned their rights under the Law on Social Insurance 2014 (effective until June 30).
According to the Law on Social Insurance 2014, individual business owners are not subject to compulsory social insurance. If needed, individual business owners can participate in voluntary social insurance.
However, from July 1, based on Clause 1, Article 2 of the Law on Social Insurance 2024, in addition to paying compulsory insurance for employees, business owners are also subject to compulsory social insurance.
Thus, in case the business owner does not pay compulsory social insurance, according to Article 39 of Decree 12/2022/ND-CP, the fine is stipulated as follows:
Fine level
Fine 18 - 20% of the total amount of social insurance and unemployment insurance payable (maximum 75 million VND) if business owners do not pay social insurance and unemployment insurance, not to the extent of criminal prosecution
Fine 50 - 75 million VND if business owners evade social insurance and unemployment insurance but have not been criminally prosecuted.
Remedial measures
Employers must pay the full amount of social insurance and unemployment insurance in installments.
The employer must pay interest by 2 times the investment interest rate of the social insurance fund last year calculated on the amount and the time of slow/escape. If not implemented by themselves, the Bank/Credit institution will be deducted from the employer's account of the employer and the highest rate of interest and the highest term of terms (applied when violating from 30 days or more).
7 cases of compulsory social insurance payment from July 1
Pursuant to Clause 1, Article 2 of the Law on Social Insurance 2024, the State expands the subjects participating in compulsory social insurance to the following groups:
First, business owners of business households with business registration participate in business according to Government regulations. This is an informal labor force that accounts for a large proportion of the economy.
Second, the person managing a business, managing or operating a cooperative does not receive salary, including positions such as board member, general director, director, controller, representative of state capital or enterprise capital at companies and other elected management positions... if not receiving salary.
Third, workers do not work full-time. These are part-time workers, with monthly salary reaching the minimum social insurance payment level (equal to or higher than the minimum social insurance payment level).
Fourth, workers with "contracts" do not have the name of the labor contract but have the nature of labor relations.
Fifth, the standing militia force (long-term militia and self-defense forces operating in the locality).
Sixth, part-time workers at the commune level (commune, ward, town).
Seventh, part-time workers in villages and residential groups.
