DECREE NO. 158/2025/ND-CP DETAILING AND GUIDING THE IMPLEMENTATION OF CERTAIN ARTICLES OF THE SOCIAL INSURANCE LAW REGARDING COMPULSORY SOCIAL INSURANCE
- Huy Lê
- Jul 3
- 4 min read
From 01 July 2025, the Social Insurance Law 2024 (No. 41/2024/QH15) officially takes effect, replacing the Social Insurance Law 2014. Accordingly, on 25 June 2025, the Government issued Decree No. 158/2025/ND-CP to provide guidance on the implementation of the Social Insurance Law. The Decree contains several notable provisions, including the following:
1. Individuals not subject to compulsory social insurance contribution
A number of cases are not required to participate in compulsory social insurance as stipulated in Clause 5, Article 3 of Decree No. 158/2025/ND-CP, including:
Employees working part-time whose monthly salary, as specified in Clause 2, Article 7 of Decree No. 158/2025/ND-CP, is lower than the minimum salary used as the basis for compulsory social insurance contributions;
Employees working under probation contracts in accordance with labor law are not subject to compulsory social insurance contribution.
2. Reference level for calculating contribution rates and entitlement levels under certain social insurance schemes
According to the guidance in Article 5 of Decree No. 158/2025/ND-CP, the reference level is defined as follows:
The reference level is the monetary amount determined by the Government to calculate the contribution rates and entitlements levels certain social insurance schemes as stipulated in the Social Insurance Law 2024.
While the base salary has not yet been abolished, the reference level under the Social Insurance Law 2024 shall be equal to the base salary. At the time the base salary is abolished, the reference level must not be lower than the abolished base salary.
When the base salary is abolished, the reference level shall be adjusted by the Government based on the increase in the consumer price index, economic growth, and in consideration of the capacity of state budget and social insurance.
3. Salary as the basis for compulsory social insurance contributions
According to the guidance in Article 7 of Decree No. 158/2025/ND-CP, the salary used as the basis for compulsory social insurance contributions, the new provisions are as follows:
For part-time employees:
The salary used as the basis for compulsory social insurance contributions is the monthly salary as agreed upon in the labor contract.
In cases where the labor contract stipulates an hourly wage, the monthly salary shall be calculated by multiplying the hourly wage by the number of working hours in the month as agreed upon in the labor contract;
In cases where the labor contract stipulates a daily wage, the monthly salary shall be calculated by multiplying the daily wage by the number of working days in the month as agreed upon in the labor contract;
In cases where the labor contract stipulates a weekly wage, the monthly salary shall be calculated by multiplying the weekly wage by the number of working weeks in the month as agreed upon in the labor contract.
For salaried enterprise managers:
The salary used as the basis for compulsory social insurance contributions is the salary that such individuals are entitled to in accordance with legal regulations.
4. Adjustment of Regulations on Retrospective Collection and Payment of Compulsory Social Insurance
According to Article 8 of Decree No. 158/2025/ND-CP, the regulations on the retroactive collection and payment of compulsory social insurance contributions are amended as follows:
Amendment and supplementation of cases subject to retrospective collection and payment of social insurance contributions:
When salaries are retroactively adjusted upward, leading to an increase in the salary base for compulsory social insurance contributions;
Vietnamese employees working abroad who extend or sign new contracts in the host country shall make retrospective social insurance contributions after returning to Vietnam;
Household business owners with registered household businesses and salaried enterprise managers who pay contributions after the statutory deadline must make payments no later than the last day of the month following the contribution cycle, as stipulated at Point b, Clause 4, Article 33 of the Social Insurance Law 2024.
Shortening the retrospective contribution period to avoid late payment interest:
New retrospective contribution deadline: Until the last day of the month following the month in which the salary increase decision is made.
For enterprise managers who receive salaries but fail to pay social insurance contributions within the latest permissible deadline:
Amount of retrospective collection = amount of compulsory social insurance contributions payable + an additional amount calculated at 0.03% per day, calculated on the overdue compulsory social insurance contributions and the number of days past the latest payment deadline.
5. Temporary suspension of compulsory social insurance contributions during employee suspension
According to Article 11 of Decree No. 158/2025/ND-CP, if an employee is suspended from work for 14 or more working days in a month, the payment of compulsory social insurance contributions shall be temporarily suspended for both the employee and the employer.
If the employee is fully paid for the suspension period, compulsory social insurance contributions must be made retroactively, no later than the end of the following month.
If the employee is not fully paid for the suspension period, no retroactive contributions are required.
In case of late retroactive payment, the provisions of Articles 40 and 41 of the Social Insurance Law 2024 shall apply.
6. Retirement regime for individuals participating in both compulsory and voluntary social insurance
According to Article 17 of Decree No. 158/2025/ND-CP:
Employees with at least 15 or 20 years of compulsory social insurance contributions (depending on the group as prescribed in Articles 64 or 65 of the Social Insurance Law 2024) shall be entitled to retirement benefits under the compulsory social insurance scheme.
Individuals with periods of both voluntary and compulsory contributions, who joined the voluntary social insurance scheme before 01 January 2021, and have accumulated 20 years of voluntary contributions, shall be entitled to a pension upon reaching the age of 60 for men and 55 for women.
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