Vietnam Social Insurance 2026: Who Must Participate & Retrospective Risks

Vietnam Social Insurance 2026 reflects a significant shift in how compulsory participation is determined in practice. Although the underlying framework is based on the 2024 Law on Social Insurance, many enterprises, particularly foreign-invested companies, continue to face retrospective collection risks during inspections, even when they believe they are compliant.

The issue no longer lies in contribution rates or administrative procedures, but in how authorities assess the substance of labor, management roles, and income, rather than contract formality or payment labels.

This article explains why workforce structures that once appeared compliant may now trigger social insurance exposure under the current regulatory approach.

For a general overview of contribution rates, compliance obligations, and procedural requirements, see our Social Insurance in Vietnam (2026): A Comprehensive Guide for Employers & Investors.

Why Do Many Enterprises That “Comply Properly” Still Face Legal Risks?

For many years, a common personnel structure existed among Vietnamese enterprises: employees with labor contracts participated in social insurance; managers, board members, directors, or legal representatives either received no salary or only “management remuneration”; and owners or household business operators remained outside the compulsory social insurance system. Actual income was often divided into allowances or support payments to optimize contribution costs.

Previously, this model largely survived due to legal gaps and a form-based regulatory approach. Under the current legal framework, however, this approach is no longer safe. During inspections, social insurance authorities no longer ask simply whether a labor contract exists; instead, they focus on who is actually working, managing, and receiving income from such activities.

Vietnam Social Insurance 2026: The New Legal Approach to Compulsory Participation

The 2024 Law on Social Insurance and its guiding decrees establish a consistent principle: compulsory social insurance obligations do not depend solely on whether a labor contract is signed, nor on whether a payment is labeled as “salary,” “remuneration,” or “support.” Instead, authorities assess the nature of the relationship and the regularity of income.

This shift in regulatory perspective is precisely why many enterprises, despite no intention to evade contributions, face retrospective collection risks if they continue to operate under outdated assumptions.

Company Managers: Not Receiving a Salary Does Not Automatically Mean “No Contribution Required”

The 2024 Law on Social Insurance and Decree No. 158/2025/NĐ-CP have fundamentally changed how social insurance obligations are determined for company and cooperative managers. Whether a labor contract exists is no longer decisive. The key consideration is whether the manager derives income from management activities.

Under enterprise law, managers include chairpersons and members of the board of directors or members’ council, directors or general directors, legal representatives, and other managerial positions defined in the company charter. From a social insurance perspective, if these individuals actually participate in business operations and receive income from management activities, they may fall within the scope of compulsory social insurance—even without a labor contract.

Importantly, social insurance law does not rely solely on the naming of payments. In practice, management remuneration, fixed monthly payments, or stable additional payments not linked to business performance – if associated with managerial roles and paid regularly – may all be treated as income subject to social insurance contributions.

Why the “Unpaid Manager” Model Is No Longer Safe

In many inspections, enterprises only become aware of the risk when authorities approach the issue differently than expected. The assumption that managers who do not receive salaries are exempt from social insurance has become legally risky under the current framework. Inspectors examine not only labor contracts, but also company charters, board or members’ council resolutions, accounting records, bank statements, and the actual extent of managerial involvement.

If a manager effectively runs the business and derives income from such activities, regardless of how that income is labeled, the possibility of retrospective social insurance collection is very real.

Business Owners and Household Business Operators: A Newly Regulated Group Requiring Special Attention

A notable development under the 2024 Law on Social Insurance is the inclusion of registered household business owners as compulsory social insurance participants. This is specifically guided by Decree No. 158/2025/NĐ-CP and directly affects individual businesses, family-run operations, and enterprises converted from household businesses.

Previously, this group could only participate in social insurance on a voluntary basis. Participation has now become a mandatory legal obligation rather than an option.

FDI Enterprises and Foreign Nationals: No “Exception” When Income Is Generated in Vietnam

For foreign-invested enterprises and foreign individuals, Vietnamese social insurance law does not distinguish based on nationality. Instead, it focuses on the substance of working relationships and income generated in Vietnam. If a foreign individual directly works, manages, or operates a business in Vietnam and derives income from such activities, the absence of a labor contract or the avoidance of the term “salary” no longer determines social insurance obligations.

In advisory practice, many foreign owners or legal representatives assume they are exempt from social insurance because they do not sign labor contracts with their own companies. This interpretation requires reassessment under the current legal framework.

Where an individual is both a capital owner and actively involved in managing a Vietnamese enterprise, compulsory social insurance obligations may arise even in the absence of a traditional labor contract.

Salary as the Basis for Social Insurance Contributions: Labels Do Not Determine Obligations

Under current regulations, the salary used as the basis for social insurance contributions includes not only the contractual salary, but also fixed allowances and stable supplementary payments. This means that position allowances, responsibility allowances, seniority allowances, or other regular monthly payments, if they constitute recurring income, may need to be included in the contribution base.

While the law allows enterprises to design flexible compensation structures, such structures must reflect their true substance. Merely renaming payments without changing their nature is a common reason for retrospective collection following inspections.

Legal Consequences of Incorrectly Determining Social Insurance Obligations

Under Vietnam Social Insurance 2024, the shift toward a substance-over-form approach means that retrospective collection risks often arise not from intentional non-compliance, but from outdated assumptions in workforce structuring and remuneration models.

A proactive review of compulsory participants, income classification, and consistency across corporate charters, contracts, accounting records, and actual payment practices is essential to reduce inspection exposure. Green NRJ supports enterprises in assessing social insurance obligations with a compliance-driven and inspection-ready approach.

Contact Green NRJ to review your current position and manage long-term social insurance risk effectively.