According to the 2024 Social Insurance Law, effective from July 1, 2025, non-salaried business managers will officially fall under the scope of mandatory social insurance (SI) participation. This is a significant step forward in expanding social security coverage and reflects Vietnam’s continued effort to improve the national insurance system and protect the rights of non-standard labor groups.
According to Point n, Clause 1, Article 2 of the 2024 Social Insurance Law (effective from July 1, 2025), the following individuals are required to participate in mandatory social insurance, even if they do not receive a salary:
“Persons acting as business managers, controllers, representatives of State-owned or enterprise-contributed capital as prescribed by law; members of the Board of Directors, General Directors, Directors, members of the Supervisory Board or controllers, and other elected managerial positions of cooperatives and unions of cooperatives as prescribed in the Law on Cooperatives, who do not receive a salary.”
In addition, under Article 4 of the 2020 Law on Enterprises, business managers include:
Even though these individuals do not sign labor contracts and do not receive wages, they are still required to participate in mandatory social insurance from July 1, 2025.
Example:
If you are the Director of a single-member limited liability company (LLC) owned by yourself and you do not receive a salary, you are still obligated to participate in mandatory social insurance under this new regulation.
Social Insurance Contribution Base:
Non-salaried business managers can choose their monthly income as the base for calculating SI contributions, within the following limits:
It is recommended that the contribution level be aligned with the manager’s financial capacity, while also considering future pension and social insurance benefits.
Social Insurance Contribution Rate:
The total contribution rate is 25% of the registered income, broken down as follows:
Important: The entire contribution amount must be fully paid by the manager themselves — not by the company or employer.
Example:
If a Director chooses to declare a contribution base of VND 2,340,000/month, the monthly SI contribution would be:
VND 2,340,000 x 25% = VND 585,000/month
Participating in mandatory social insurance is not only a legal obligation, but also brings tangible long-term benefits, including:
Failure to comply with this regulation may result in administrative penalties and loss of future entitlements.
Therefore, business managers are encouraged to:
The inclusion of non-salaried business managers in the mandatory social insurance system from July 1, 2025 marks a necessary and strategic expansion of Vietnam’s social protection framework. Timely compliance not only demonstrates social responsibility but also safeguards personal and family welfare in the long term.
If you or your business needs professional guidance on procedures, documentation, or optimal contribution planning, our dedicated social insurance consultants are ready to assist you.
Contact our Social Insurance Specialist:
Ms. Do Thi Thu Quynh_ Head of HR & Payroll Services, quynh.do@tpm.com.vn
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