Enforcing Vietnam’s Social Insurance Law: Late Payment and Evasion Explained

Vietnam’s social security regime is entering a stricter enforcement phase. With the 2024 Law on Social Insurance now in force and Decree 274/2025/ND-CP effective from 10 November 2025, authorities have clearer tools to deal with late payment and evasion of compulsory social insurance (SI) and unemployment insurance (UI).

For employers, the late payment of social insurance in Vietnam is no longer a minor administrative issue. Decree 274 introduces precise definitions, timelines and penalties, and allows late payment cases to be upgraded to “evasion” if they are not remedied promptly. Understanding these rules is essential to avoid escalating liabilities.

Stricter social insurance enforcement in Vietnam – protecting employees and employers.

1. New enforcement framework under the Vietnam’s Social Insurance Law 2024

The 2024 Law on Vietnam’s Social Insurance sets the overall obligations for compulsory SI and UI participation. Decree 274/2025/ND-CP (“Decree 274”) provides the enforcement mechanics:

• When an employer is considered late in paying compulsory SI and UI;

• When conduct constitutes evasion rather than mere delay;

• How to treat exceptional circumstances such as disasters or epidemics; and

• How to calculate the 0.03% per day penalty on outstanding contributions.

In practice, this means social insurance authorities now have a clearer basis to monitor contributions monthly, send formal reminders and escalate serious non-compliance.

2. Statutory deadlines for compulsory SI and UI contributions

The starting point is the statutory payment deadline. Under the 2024 Law:

• For monthly contributions, the deadline is the last day of the following month.

• For quarterly or biannual contributions, the deadline is the last day of the month following the contribution period.

Both employers and employees must pay the unemployment insurance premium at the same time as the compulsory social insurance contribution, in line with Decree 28/2015/ND-CP.

Missing these deadlines is what ultimately triggers late payment of social insurance in Vietnam, and, if not corrected, potential reclassification as evasion.

3. What counts as late payment of social insurance in Vietnam?

Under Decree 274, an employer is treated as late in paying compulsory SI or UI when:

• Contributions are missing or underpaid after the statutory deadline based on the registration and payment dossiers already submitted; or

• The employer has not yet corrected these shortfalls but has not crossed the thresholds that would make the conduct “evasion”.

In practical terms, typical late-payment situations include:

• A company that files SI/UI registration on time but pays the contributions a few weeks late;

• Payroll errors that result in partial contributions for one or more months;

• Temporary cash-flow problems causing short delays, but where the employer still plans to make full payment.

Late payment status is the first warning level. Decree 274, however, makes it clear that prolonged or repeated delays can quickly move into the more serious category of evasion.

4. When late payment becomes evasion

Decree 274 lists several behaviours that constitute evasion of compulsory SI and UI. Importantly, late payment can be reclassified as evasion if not remedied within specified time limits.

4.1. Failure to register employees

An employer is considered to be evading contributions where it:

• Does not register employees for SI within 60 days of the legally prescribed deadline; or

• Does not register employees for UI within 60 days of the UI participation deadline.

In this case, the violation is treated as evasion from the 61st day after the registration deadline.

4.2. Under-reporting wages as the contribution base

Evasion also arises when an employer deliberately declares a lower salary than actually paid as the base for SI or UI contributions. For example:

• Reporting only the basic salary while regularly paying large allowances that should be included in the contribution base; or

• Using outdated salary rates despite issuing new labour contracts with higher pay.

For employers contributing monthly, evasion is considered to start from the day after the following month in which the under-reported wages arose. For quarterly or biannual contributors, it starts from the day after the next contribution cycle.

4.3. Continued non-payment after official reminders

Perhaps the most important escalation rule is where an employer does not pay or only partially pays SI or UI for more than 60 days after the deadline and continues non-payment even after receiving an official reminder from the competent authority.

• If the reminder is issued within 45 days after the latest permitted payment date and the employer still fails to contribute within 60 days, the case is classified as evasion from the 61st day.

• If the reminder is issued later than 45 days after the deadline, evasion is deemed to occur 15 days after the reminder date if payment is still not made.

In short, once an official reminder has been issued, the grace period is limited. Employers cannot rely on prolonged late payment without facing the risk of being labelled as evading social insurance.

5. Situations that are not treated as SI/UI evasion

Decree 274 recognises that in some cases employers cannot realistically meet their obligations due to force majeure events. Delays caused by these circumstances are not considered evasion, provided they are formally recognised by competent authorities.

These include:

• Natural disasters such as storms, floods, earthquakes, major fires or prolonged droughts that directly and seriously disrupt business operations;

• Dangerous epidemics officially declared by state authorities that significantly affect an organisation’s finances and operations;

• Declared states of emergency, where extraordinary situations interfere with normal activities; and

• Other force majeure events as defined under civil law.

Even in these cases, employers should keep clear records demonstrating how the event affected their ability to pay SI/UI and should communicate early with social insurance authorities.

6. Penalties: the 0.03% daily charge on late or unpaid contributions

One of the most notable features of the new regime is the financial cost of late payment or evasion.

Employers that delay or evade compulsory SI or UI contributions must pay an additional 0.03% per day on the outstanding amount, calculated based on:

• The total unpaid or underpaid SI/UI contributions; and

• The number of days for which payment is delayed or not made.

  
  

How monitoring and reminders work

The Vietnam Social Security (VSS) agency will:

1. Review contribution data monthly to identify employers that are late or potentially evading;

2. Issue a written reminder within the first 10 days of each month to non-compliant employers, specifying:

   • The amount owed and the number of unpaid days;

   • The cumulative penalty at 0.03% per day; and

   • The remedial actions required and the deadline for compliance.

If an employer fails to rectify the situation within 60 days of the legal payment deadline, the case may be reclassified from late payment to evasion, triggering heavier administrative or even criminal consequences depending on the severity.

Simple illustration

For example, if a company owes VND 500 million in SI contributions and pays 30 days late, the daily penalty would be:

• 0.03% × 30 × VND 500,000,000 = VND 4,500,000 in additional charges, on top of the original contribution.

This illustrates how quickly the cost of late payment of social insurance in Vietnam can rise even over a relatively short delay.

7. Practical compliance steps for employers

Given the tighter enforcement environment, employers should treat SI/UI compliance as a core part of risk management, not just payroll administration. Recommended actions include:

1. Review contribution history

   • Check SI/UI payments for at least the last 12–24 months to identify any gaps, underpayments or late submissions.

2. Verify registration status of all employees

   • Ensure every eligible employee has been registered for SI and UI on time.

   • Pay special attention to probationary staff transitioning to full employment and to expatriate employees where rules may differ.

3. Align contribution base with actual wages

   • Compare salaries used for SI/UI contributions with actual payments under labour contracts, including relevant allowances and regular bonuses.

   • Correct any under-reported wages to avoid being treated as intentionally lowering the contribution base.

4. Implement internal deadlines

   • Set internal cut-off dates for payroll and SI/UI payments earlier than the statutory deadlines, allowing time to fix errors and avoid late payment.

5. Monitor official correspondence

   • Make sure letters and emails from VSS are received and handled promptly. A reminder letter is a clear signal that the countdown to possible evasion classification has started.

6. Document force majeure events

   • If your business is affected by disasters, epidemics or emergencies, keep full documentation and seek written confirmation where possible, so that delays can be properly assessed under Decree 274.

7. Engage professional support when in doubt

   • For complex cases—such as historical arrears, mergers or restructuring—it is prudent to obtain specialist advice before approaching the authorities.

     
     

8. How Vinex can help manage SI and UI risks

Navigating the new enforcement rules on late payment of social insurance in Vietnam can be challenging, especially for foreign-invested companies and businesses undergoing rapid change.

Vinex supports employers by:

• Reviewing existing payroll and SI/UI contribution records to identify exposure;

• Analysing whether any delays may be at risk of being reclassified as evasion under Decree 274;

• Advising on corrective payment plans and how to communicate with the Vietnam Social Security agency;

• Ensuring registration and contribution procedures are aligned with the 2024 Social Insurance Law and related decrees; and

• Providing ongoing legal and compliance updates as Vietnam refines its social security framework.

  
  

If you are concerned about social insurance or unemployment insurance compliance in Vietnam, or if your organisation has experienced delays in contributions, our team can help you assess the situation and design a practical remediation plan before issues escalate.

📩 Email: contact@vinex.com.vn📞 Hotline / WhatsApp: +84 98 111 18 11