VI Below, we address the question: “What is the penalty for a company that fails to register the required number of employees for mandatory social insurance within 60 days after the deadline?” Let’s explore this further with Phạm Consult!
What is the penalty for a company that fails to register the required number of employees for mandatory social insurance within 60 days after the deadline?
Effective September 10, 2026, a company that fails to register the required number of employees for mandatory social insurance within 60 days after the deadline—as stipulated in Clause 1, Article 28 of the 2024 Law on Social Insurance—may face a fine ranging from VND 12,000,000 to VND 150,000,000.
Furthermore, the company will be compelled to complete the registration documentation (or ensure full registration for all eligible employees), pay the full amount of mandatory social insurance contributions that were evaded, and remit an additional sum—calculated at 0.03% per day of the evaded contribution amount—into the social insurance fund for the duration of the evasion. Pursuant to Clause 1, Article 44 of Decree 283/2026/NĐ-CP, the following is stipulated:
Violations regarding the evasion of compulsory social insurance contributions
- Employers who fail to register, or fail to fully register, the number of individuals required to participate in compulsory social insurance—beyond a period of 60 days following the expiration of the deadline specified in Clause 1, Article 28 of the Law on Social Insurance—shall be subject to a fine according to one of the following levels:
- a) From VND 6,000,000 to VND 12,000,000 for violations involving fewer than 10 employees;
- b) From VND 12,000,000 to VND 20,000,000 for violations involving between 10 and fewer than 50 employees;
- c) From VND 20,000,000 to VND 30,000,000 for violations involving between 50 and fewer than 100 employees;
- d) From VND 30,000,000 to VND 40,000,000 for violations involving between 100 and fewer than 300 employees;
- e) From VND 40,000,000 to VND 50,000,000 for violations involving between 300 and fewer than 500 employees;
- f) From VND 50,000,000 to VND 60,000,000 for violations involving between 500 and fewer than 700 employees. g) From 60,000,000 VND to 70,000,000 VND, in cases involving violations affecting between 700 and fewer than 1,000 employees;
- h) From 70,000,000 VND to 75,000,000 VND, in cases involving violations affecting 1,000 or more employees.
- Remedial measures
- a) Compel the employer to prepare registration documentation—or complete the registration documentation—for all employees required to participate in compulsory social insurance; to pay the full amount of compulsory social insurance contributions that were evaded; and to pay an additional amount equal to 0.03% per day—calculated based on the evaded contribution amount and the number of days of evasion—into the social insurance fund, in relation to violations specified in Clause 1 of this Article.
Note: The specified fines apply to individuals. Fines for organizations are twice the amount applicable to individuals (Clause 1, Article 17 of Decree 283/2026/ND-CP).
*The above information addresses the question: “What is the penalty for a company that fails to register the required number of employees for compulsory social insurance 60 days after the deadline has passed?”
Who is required to participate in compulsory social insurance? Pursuant to Clauses 1, 2, and 3 of Article 2 of the 2024 Law on Social Insurance, the subjects subject to compulsory social insurance include:
(1) Employees who are Vietnamese citizens and are subject to compulsory social insurance, including:
– Persons working under an employment contract with an indefinite term or a fixed term of one month or more; this includes cases where the employee and the employer agree on a different designation for the arrangement, provided that the content pertains to paid employment, wages, and the management, direction, or supervision by one party;
– Cadres, civil servants, and public employees;
– Defense workers and public employees, police workers, and individuals performing other duties within the cipher (cryptographic) organization;
– Officers and professional military personnel of the Vietnam People’s Army; officers and non-commissioned officers (both operational and technical/specialized) of the Vietnam People’s Public Security; and individuals working in the cipher sector who receive salaries equivalent to those of military personnel;
– Non-commissioned officers and soldiers of the Vietnam People’s Army; non-commissioned officers and enlisted personnel performing mandatory service in the Vietnam People’s Public Security; and students in the military, public security, or cipher sectors who receive a living allowance while pursuing their studies;
– Permanent militia members;
– Employees working abroad under contracts as stipulated by the Law on Vietnamese Workers Working Abroad under Contracts, unless otherwise provided by an international treaty to which the Socialist Republic of Vietnam is a party.
– A spouse who does not receive a salary from the state budget and accompanies a member of a diplomatic mission or representative office of the Socialist Republic of Vietnam abroad on a fixed-term assignment is entitled to a living allowance;
– Business managers, supervisors, representatives of state capital, representatives of corporate capital (as prescribed by law); members of the Board of Directors, General Directors, Directors, members of the Supervisory Board (or supervisors), and other elected managerial positions in cooperatives or unions of cooperatives (as prescribed by the 2023 Law on Cooperatives) who receive a salary;
– Individuals serving in non-specialized roles at the commune level, or in villages or residential groups;
– Individuals specified in point (a) of this clause who work on a part-time basis, provided their monthly salary is equal to or higher than the minimum salary threshold used as the basis for mandatory social insurance contributions;
– Owners of registered business households, subject to regulations issued by the Government;
– Business managers, supervisors, representatives of state capital, representatives of corporate capital (as prescribed by law); members of the Board of Directors, General Directors, Directors, members of the Supervisory Board (or supervisors), and other elected managerial positions in cooperatives or unions of cooperatives (as prescribed by the 2023 Law on Cooperatives) who do not receive a salary.
(2) Foreign nationals working in Vietnam are subject to mandatory social insurance if they are employed under a fixed-term labor contract with a duration of 12 months or more with an employer in Vietnam, excluding the following cases:
– Intra-corporate transfers, as defined by the laws governing foreign workers in Vietnam; – At the time of entering into an employment contract, the individual has already reached the retirement age as stipulated in Clause 2, Article 169 of the 2019 Labor Code;
– An international treaty to which the Socialist Republic of Vietnam is a party contains different provisions.
(3) Employers subject to mandatory social insurance participation include:
– State agencies and public service providers;
– Agencies, units, and enterprises within the Vietnam People’s Army, the Vietnam People’s Public Security, and the cipher organization;
– Political organizations, socio-political organizations, socio-political-professional organizations, socio-professional organizations, and other social organizations;
– Foreign agencies, organizations, and international organizations operating within the territory of Vietnam;
– Enterprises, cooperative groups, cooperatives, unions of cooperatives, business households, other organizations, and individuals that hire or employ workers under employment contracts.
What is mandatory social insurance?
Mandatory social insurance is a form of social insurance organized by the State, in which employees and employers who fall under the scope of mandatory social insurance are required to participate.
(Clause 3, Article 3 of the 2024 Law on Social Insurance)
