Expanding the scope of mandatory social insurance participants 2026

Against the backdrop of Vietnam’s intensified social security policy reforms, the National Assembly’s passage of Law on Social Insurance No. 41/2024/QH15 (“Law on Social Insurance 2024”) marks a significant milestone in the roadmap toward universal social insurance coverage, in alignment with Resolution No. 28-NQ/TW of the Central Committee. The Law on Social Insurance 2024, which takes effect on July 1, 2025, substantially expands coverage by incorporating several new categories of participants into the mandatory social insurance scheme, thereby reinforcing a more comprehensive social safety net. This article analyzes the key updates regarding the expansion of mandatory participants and clarifies the significance of these changes in the progression of the national social security system.

1. Subjects of mandatory social insurance

1.1. For Vietnamese citizens

In addition to the previously regulated groups, the Law on Social Insurance 2024 has expanded the scope of mandatory participation to include several new groups, specifically:⁸

(i) Individuals with a de facto employment relationship: Employees working under labor contracts with a term of one month or more are subject to mandatory participation. Notably, this regulation also applies where parties agree on alternative designations (e.g., collaboration contracts, business cooperation contracts, etc.) but the nature of the engagement involves paid work, wages, and the management, direction, or supervision by one party, which shall be identified as labor relations subject to mandatory social insurance.

(ii) Owners of registered household businesses:⁹

Owners of registered household businesses who pay tax under the declaration method: Participation commences from July 1, 2025.

All other household business owners: Participation becomes mandatory from July 1, 2029.

(iii) Part-time employees:¹⁰ Those with a monthly salary equal to or higher than the minimum Reference Level for social insurance contributions.

(iv) Non-specialized personnel: Individuals operating at the communal, village, or residential cluster levels.

(v) Unpaid management and supervisory roles: Enterprise managers, supervisors, state capital representatives, or enterprise capital representatives as prescribed by law; members of the Board of Directors, General Directors, Directors, members of the Supervisory Board or supervisors, and other elected management titles of cooperatives and cooperative unions under the Law on Cooperatives who do not receive a salary.

The Law on Social Insurance 2024 further empowers the Standing Committee of the National Assembly to decide on the expansion of mandatory participation for other groups with stable and regular employment and income, based on Government proposals suited to socio-economic development stages.¹¹ These supplemental provisions ensure consistency with the Labor Code 2019 and guarantee enhanced benefits for participants, contributing to increased social insurance coverage.

1.2. For foreign nationals

Under the Law on Social Insurance 2024, foreign nationals working in Vietnam under labor contracts with a term of 12 months or more are subject to mandatory participation. However, the law provides specific exemptions for:¹²

Employees subject to intra-corporate transfers as per labor laws and regulations on foreign workers in Vietnam;
Employees who have reached the statutory retirement age at the time of entering the labor contract;
Cases where International Treaties to which the Socialist Republic of Vietnam is a member provide otherwise regarding social insurance obligations.

These regulations demonstrate the principle of equality between Vietnamese and foreign employees, aligning with international social security practices and enhancing the transparency and stability of the Vietnamese labor market during deep integration.

2. Salary as the basis for social insurance contributions

According to legal regulations, the salary used as the basis for mandatory social insurance contributions is defined as follows:¹³

Minimum basis: Equal to the Reference Level.

Maximum basis: Equal to 20 times the Reference Level at the time of contribution.

The Reference Level is the amount decided by the Government used to calculate the contribution levels and benefit levels of certain social insurance regimes prescribed in the Law on Social Insurance. Until the statutory pay rate is abolished, the Reference Level stipulated in the Law on Social Insurance shall be equal to the current statutory pay rate (the current statutory pay rate is 2,340,000 VND/month).¹⁴ At the time the statutory pay rate is abolished, the Reference Level shall not be lower than said statutory pay rate. When the statutory pay rate is abolished, the Reference Level shall be adjusted by the Government based on the increase in the consumer price index, economic growth, and in alignment with the capacity of the state budget and the social insurance fund.

From the above analysis, it can be seen that the Law on Social Insurance 2024 not only expands the scope of coverage but also demonstrates a more comprehensive, flexible, and progressive approach to Vietnam’s social security policy. The inclusion of additional categories into the mandatory social insurance scheme not only strengthens inclusiveness and equity but also reaffirms the constitutional principle of every citizen’s right to social security, while simultaneously serving as the foundation for the nation’s sustainable development.

^{(8) Article 2.1 of the Law on Social Insurance 2024.}

^{(9) Article 3.2 of the Decree 158/2025/ND-CP.}

^{(10) Part-time employees are those whose working time is shorter than normal working time per day, week, or month as prescribed by labor law, collective bargaining agreements, or internal labor regulations. Normal working time shall not exceed 08 hours per day and 48 hours per week (Article 32.1 and Article 105.1 of the Labor Code 2019).}

^{(11) Article 2.6 of the Law on Social Insurance 2024.}

^{(12) Article 2.2 of the Law on Social Insurance 2024.}

^{(13) Article 31.1.dd of the Law on Social Insurance 2024.}

^{(14) Article 5 of the Decree 158/2025/NĐ-CP and Article 3.2 of the Decree 73/2024/NĐ-CP.}

Date written: 20/01/2026

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Disclaimers:

This article is for general information purposes only and is not intended to provide any legal advice for any particular case. The legal provisions referenced in the content are in effect at the time of publication but may have expired at the time you read the content. We therefore advise that you always consult a professional consultant before applying any content.

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