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Expansion Of Mandatory Social Insurance From July 1st, 2025: New Target Groups And Important Changes
Starting July 1, 2025, significant changes will be made to the mandatory social insurance (SI) contribution policy, expanding the scope of participants. This aims to enhance social welfare for workers, ensure broader SI coverage, and move towards a sustainable social security system.
According to the 2024 Social Insurance Law, effective from July 1, 2025, the scope of mandatory social insurance participation will be expanded to include individuals in businesses and household enterprises, specifically:
- Owners of household businesses (with business registration).
- Enterprise managers, controllers, representatives of state capital, representatives of enterprise capital in companies and parent companies, and executive managers of cooperatives who do not receive salaries.
- Part-time workers (employees working under flexible employment arrangements).
- Individuals without a formal labor contract or with an agreement under a different title, but whose work involves wages, remuneration, and is subject to management, supervision, and direction by an employer, under the 2019 Labor Code.
Below Is A Detailed Summary Of Individuals Required To Participate In Mandatory Social Insurance From July 1, 2025
Participants | Notes |
1. Vietnamese workers | |
Workers under indefinite-term or fixed-term labor contracts of at least one month | Includes contracts under different titles but involving wages and employer management/supervision |
Enterprise managers, controllers, representatives of state capital, representatives of enterprise capital, board members, CEOs, directors, audit committee members, or cooperative controllers | Receiving salaries |
Part-time workers under labor contracts | The monthly wage must be at least equal to the minimum threshold for mandatory SI contribution |
Owners of registered household businesses | |
Enterprise managers, controllers, representatives of state capital, representatives of enterprise capital, board members, CEOs, directors, audit committee members, or cooperative controllers | Not receiving salaries |
2. Foreign workers employed in Vietnam | If working under a labor contract of at least 12 months with an employer in Vietnam (except for exempted cases) |
3. Employers | Includes businesses, representative offices, household businesses, organizations, and individuals employing workers under labor contracts |
Conclusion
The expansion of mandatory social insurance participation from July 1, 2025, will enhance worker benefits and strengthen the social security system. However, to adapt to these changes, both workers and businesses must proactively stay informed, plan their finances, and fulfill their obligations. This reform presents an opportunity to create a stable working environment and ensure long-term benefits for all stakeholders.
For consultation, please contact 028 3505 1800 or directly connect with TPM specialists for support.
Ms. Do Thi Thu Quynh
Senior Specialist – Social Insurance & Payroll Department
quynh.do@tpm.com.vn
References
- 2014 Social Insurance Law, dated November 20, 2014
- 2024 Social Insurance Law, dated June 29, 2024
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