VI From January 1, 2026, regulations on social insurance participation applicable to business household heads have introduced several notable changes, particularly regarding the determination of persons subject to compulsory social insurance based on annual revenue. So, does a business household head with annual revenue of less than VND 1 billion have to participate in compulsory social insurance, and what benefits can they receive if they participate in social insurance? Let’s explore these issues with Pham Consult in this article!
1. Does a business household head with annual revenue of less than VND 1 billion have to participate in compulsory social insurance? What are the benefits of social insurance participation for business household heads?
From January 1, 2026, a business household head whose declared annual revenue is less than VND 1 billion is not required to participate in compulsory social insurance. If the business household head wishes to participate in social insurance, the social insurance authority will provide guidance on participating in voluntary social insurance.
Specifically, Official Letter No. 2220/BHXH-QLT of 2026 on persons subject to compulsory social insurance participation applicable to business household heads provides as follows:
- Pursuant to Point m, Clause 1, Article 2, Clause 2, Article 27 and Clause 2, Article 28 of the 2024 Law on Social Insurance, and Point a, Clause 2, Article 3 of Decree No. 158/2025/ND-CP dated June 25, 2025 of the Government detailing and guiding the implementation of a number of articles of the Law on Social Insurance regarding compulsory social insurance, from July 1, 2025, the head of a registered business household that pays tax under the declaration method is subject to compulsory social insurance participation.
Pursuant to Articles 3 and 4 and Clause 1, Article 8 of Decree No. 68/2026/ND-CP dated March 5, 2026 of the Government on tax policies and tax administration applicable to business households and individual businesses; Clause 1, Article 1 and Article 3 of Decree No. 141/2026/ND-CP dated April 29, 2026 amending and supplementing a number of provisions of Decree No. 68/2026/ND-CP on tax policies applicable to business households and individual businesses; and Decree No. 320/2025/ND-CP detailing a number of articles and measures for the implementation and guidance of the Law on Corporate Income Tax, from January 1, 2026, all business households are required to declare their revenue to the tax authority. The revenue threshold for business households subject to value-added tax (VAT) and personal income tax (PIT), which was previously above VND 500 million per year under Decree No. 68/2026/ND-CP, has been increased to above VND 1 billion per year under Decree No. 141/2026/ND-CP.
Accordingly, from January 1, 2026, the social insurance authority will receive applications for compulsory social insurance registration from business household heads whose declared annual revenue exceeds VND 1 billion, as prescribed in Decree No. 141/2026/ND-CP. In cases where the business household head has declared annual revenue of less than VND 1 billion, the social insurance authority will provide guidance on participating in voluntary social insurance.
In addition, Official Letter No. 2792/BHXH-QLT of 2026 on the collection and payment of compulsory social insurance contributions applicable to business household heads provides the following guidance:
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A business household shall self-determine whether its annual revenue from the production and trading of goods and provision of services is VND 1 billion or less, and shall notify the tax authority of the actual revenue generated during the year no later than January 31 of the following calendar year.
- From July 1, 2029, the heads of registered business households that remain outside the above-mentioned categories shall be subject to compulsory social insurance participation.
Accordingly, from January 1, 2026, a business household head whose declared annual revenue exceeds VND 1 billion as prescribed in Decree No. 141/2026/ND-CP must submit an application for compulsory social insurance registration to the social insurance authority. A business household head whose declared annual revenue is less than VND 1 billion may register for voluntary social insurance in order to accumulate social insurance contribution periods and secure social security benefits, including maternity allowance, retirement benefits, and survivorship benefits, when the relevant eligibility conditions are satisfied.
Accordingly, a business household head with annual revenue of less than VND 1 billion may register for voluntary social insurance to accumulate social insurance contribution periods and secure social security benefits, including maternity allowance, retirement benefits, and survivorship benefits, when the relevant eligibility conditions are satisfied.
2. What payment methods are available for voluntary social insurance participation by business household heads?
Pursuant to Clause 2, Article 36 of the 2024 Law on Social Insurance, the following provisions apply:
Contributions, payment methods and payment deadlines for voluntary social insurance participants
- Persons specified in Clause 4, Article 2 of this Law shall contribute monthly at a rate of 22% of the income used as the basis for voluntary social insurance contributions to the retirement and survivorship fund.
Based on socio-economic development conditions and the capacity of the state budget from time to time, the Government shall prescribe the level of support, eligible beneficiaries and duration of policies on supporting voluntary social insurance contributions.
- Voluntary social insurance participants may choose one of the following payment methods:
a) Monthly;
b) Every 03 months;
c) Every 06 months;
d) Every 12 months;
dd) A lump-sum payment for multiple future years, with the amount payable being lower than the amount calculated according to the rate prescribed in Clause 1 of this Article;
e) A lump-sum payment for the remaining social insurance contribution period required to satisfy the conditions for receiving a pension, with the amount payable being higher than the amount calculated according to the rate prescribed in Clause 1 of this Article.
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Accordingly, if a business household head wishes to participate in voluntary social insurance, they may choose one of the following payment methods:
- Monthly;
- Every 03 months;
- Every 06 months;
- Every 12 months;
- A lump-sum payment for multiple future years, with the amount payable being lower than the amount calculated according to the rate prescribed in Clause 1, Article 36 of the 2024 Law on Social Insurance;
- A lump-sum payment for the remaining social insurance contribution period required to satisfy the conditions for receiving a pension, with the amount payable being higher than the amount calculated according to the rate prescribed in Clause 1, Article 36 of the 2024 Law on Social Insurance.
3. What are the payment deadlines for voluntary social insurance?
Pursuant to Clause 3, Article 36 of the 2024 Law on Social Insurance, the payment deadlines for voluntary social insurance participants are prescribed as follows:
(1) Within the month for the monthly payment method;
(2) Within 03 months for the payment method made every 03 months;
(3) Within the first 04 months for the payment method made every 06 months;
(4) Within the first 07 months for the payment method made every 12 months;
(5) At the time of registering the payment method and the monthly income used as the basis for contributions, for the case specified in Point dd, Clause 2, Article 36 of the 2024 Law on Social Insurance;
(6) At the time of registering the payment method and the monthly income used as the basis for contributions, for the case specified in Point e, Clause 2, Article 36 of the 2024 Law on Social Insurance, but no earlier than the month immediately preceding the month in which the participant reaches the statutory retirement age.
