From delays in social insurance (SI) registration, incorrect contribution salary base, to evasion or failure to pay insurance for short-term contract employees — each act may be subject to penalties, retrospective collection, and late payment interest of up to 0.03% per day. These violations can also directly affect the company’s legal reputation and its ability to obtain operating licenses in Vietnam.
With the Social Insurance Law 2024 coming into effect in July 2025 and the new system of implementing decrees — particularly Decree No. 274/2025/NĐ-CP issued on October 16, 2025 — clear regulations have been established to address cases where enterprises delay or evade their SI and Unemployment Insurance (UI) obligations. Foreign-invested enterprises, therefore, need to proactively review, assess, and establish comprehensive compliance mechanisms — not only to avoid legal risks but also to build a professional, transparent, and responsible employer image in Vietnam. The following article provides detailed information on the potential penalties and risks arising from non-compliance with SI regulations.
1. Guidelines for determining the amount of late payment in compulsory social insurance and unemployment insurance contributions
To determine whether enterprises are in a state of delayed payment of social insurance contributions, and to accurately calculate the amount of such late payment, foreign-invested enterprises need to assess each situation in which the company may be at risk of non-compliance, specifically as follows:
- In cases where enterprises have registered SI for their employees but makes late monthly or quarterly payments, the amount of compulsory social insurance considered as late payment refers to the portion of contributions that enterprises are responsible for in each period they have registered to apply. For delayed UI contributions, this is understood as the amount that the enterprise is responsible for paying according to its registration after the latest deadline for UI payment as prescribed by the law on unemployment insurance..
- For cases where enterprises: (i) fail to register or register incompletely the number of employees required to participate in compulsory social insurance within 60 days from the expiration of the prescribed deadline; or (ii) fail to register or register incompletely the number of employees required to participate in unemployment insurance within 60 days from the expiration of the deadline for participation as stipulated under the law on unemployment insurance.
In these two cases, the amount of compulsory social insurance in arrears is understood as: the amount for which the enterprise is responsible to contribute on behalf of employees who have not been registered for social insurance participation within the legally prescribed timeframe; the amount of unemployment insurance in arrears is the amount for which the employer is responsible to contribute on behalf of employees who have not been registered for unemployment insurance participation within 60 days from the expiration of the deadline for participation as stipulated under the law on unemployment insurance.
- For enterprises that are late in registering SI and UI for their employees within 60 days from the due date, but are not considered to have evaded SI or UI contributions, the amount of social insurance and unemployment insurance in arrears is the amount that the enterprises are responsible to pay on behalf of the employees for the period during which they were not yet registered for participation in social insurance and unemployment insurance.
Accordingly, cases that are not considered as evasion of SI or UI contributions are understood as situations in which the enterprises are unable to fulfill their corresponding obligations due to objective or force majeure events such as: storms, floods, inundations, earthquakes, major fires; dangerous epidemics officially declared by competent state authorities; states of emergency as prescribed by law that cause sudden and unexpected impacts on the operations of agencies, organizations, or employers; and other force majeure events.
2. Determination of the amount and number of days of evasion of compulsory social insurance and unemployment insurance contributions
Delays in fulfilling obligations related to SI and UI shall be understood as enterprises being late in filing declarations or late in paying contributions, but the declared payment amount does not show any fraudulent intent to reduce their obligations. However, if enterprises declares inaccurately the actual wages and related amounts used as the basis for calculating SI and UI contributions, or incorrectly declares the employment relationship between enterprises and the employee, it shall be considered as an act of evading the obligation to contribute. The amount and number of days of evasion of compulsory SI and UI contributions as prescribed in clause 1, Article 41 of the Law on Social Insurance are determined as follows:
The amount of evaded compulsory SI and UI contributions is determined when the enterprise falls into one of the following cases:
More than 60 days have passed since the deadline for registering and declaring SI and UI contributions for employees, but the enterprise has not done so. In this case, the amount payable after the 60-day period shall be considered as the amount that the enterprise has evaded, not merely delayed.
The enterprise registers wages as the basis for calculating SI and UI contributions that are lower than the prescribed level. However, the prescribed level mentioned here shall be understood as: the monthly salary including the wage according to the job or title, salary allowances, and other additional amounts agreed to be paid regularly and stably in each pay period.
The number of days of evasion of compulsory social insurance and unemployment insurance contributions shall be determined as follows:
The number of days of evasion of compulsory SI and UI contributions shall be counted from the day following the latest deadline for payment of social insurance contributions as prescribed.
- In cases where evasion is committed through the registration of wages as the basis for compulsory social insurance and unemployment insurance contributions lower than the prescribed level: For the monthly payment method, the number of days of evasion of compulsory social insurance and unemployment insurance contributions shall be determined starting from the day following the last day of the month after the month in which the registered wage used as the basis for compulsory social insurance contributions was lower than prescribed under clause 1, Article 31 of the Law on Social Insurance.
- For the payment method of every 03 months or every 06 months: The number of days of evasion of compulsory social insurance and unemployment insurance contributions shall be determined starting from the day following the last day of the month immediately after the contribution cycle during which the registered wage used as the basis for compulsory social insurance contributions was lower than prescribed under clause 1, Article 31 of the Law on Social Insurance.
- For cases of evasion in which the employer fails to pay or pays insufficient amounts of compulsory SI and UI contributions after the prescribed deadline, and has been urged or reminded by the competent authority within 45 days from the latest deadline for social insurance payment, the number of days of evasion of compulsory social insurance and unemployment insurance contributions shall be determined starting from 60 days after the latest deadline for social insurance payment as prescribed in Clause 4, Article 34 of the Law on Social Insurance, or after the latest deadline for unemployment insurance payment as prescribed by the law on unemployment insurance.
- For enterprises that have been urged by the competent authority in accordance with regulations after 45 days from the latest deadline for social insurance payment as prescribed in clause 4, Article 34 of the Law on Social Insurance, the number of days of evasion of compulsory social insurance and unemployment insurance contributions shall be determined starting from the 15th day after the date on which the urging document is issued by the competent authority.
Based on the above-mentioned new regulations, the social insurance management agency shall determine the amount of compulsory social insurance and unemployment insurance contributions that are delayed or evaded, as well as the number of days of delay or evasion of compulsory social insurance and unemployment insurance contributions; calculate the amount payable by the employer at the rate of 0.03% per day on the amount of delayed or evaded contributions; notify the employer for reconciliation; and organize the collection and management in accordance with regulations.
In conclusion, compliance with social insurance regulations in Vietnam is not merely an administrative obligation, but a pillar in the human resources risk management and legal compliance governance system of every FDI enterprises. In the context of the Vietnamese Government promoting digitalization and data connectivity among tax, labor, and insurance authorities, acts of late payment, evasion, or incorrect declaration of wages used as the basis for social insurance contributions can all be detected and sanctioned promptly — with fines of up to hundreds of millions of VND, a late payment interest rate of 0.03% per day, and even criminal prosecution in serious cases. For foreign-invested enterprises, the consequences of non-compliance go beyond financial losses, directly affecting brand reputation, the ability to renew investment licenses, and senior human resources management.
CDLAF’s Social Insurance – Labor Compliance Services support enterprises from document review and payroll process setup to representing them in dealings with competent authorities, helping businesses operate safely and in compliance with the law in Vietnam.
Time of writing: 24/10/2025
The article contains general information which is of reference value, in case you want to receive legal opinions on issues you need clarification on, please get in touch with our Lawyer at info@cdlaf.vn
Why choose CDLAF’s service?
- We provide effective and comprehensive legal solutions that help you save money and maintain compliance in your business;
- We continue to monitor your legal matters even after the service is completed and update you when there are any changes in the Vietnamese legal system;
- Our system of forms and processes related to labor and personnel is continuously built and updated and will be provided as soon as the customer requests it;
- As a Vietnamese law firm, we have a thorough understanding of Vietnam’s legal regulations, and grasp the psychology of employees, employers, and working methods at competent authorities;
- CDLAF’s team of lawyers has many years of experience in the field of labor and enterprises, as well as human resources and financial advisory.
- Strict information security procedures throughout the service performance and even after the service is completed.
You can refer for more information:
- When can enterprises use foreign currency within Vietnam’s territory?
- Discussion on the form of capital contribution by management experience in enterprises
- Why must enterprises protect employees’ personal information?
- Analysis of the roles and responsibilities of the parties involved in data processing under Vietnamese law
- Sensitive Data: What your business might be handling without knowing it
