Key Highlights of Amendments to the Social Insurance and Health Insurance Laws

From July 1, 2025, the Social Insurance Law 2024 and the Amended Law on Health Insurance 2024 will officially take effect, marking a significant shift in Vietnam’s social security system. The new regulations not only expand entitlements for employees but also impose greater compliance requirements on employers in relation to insurance obligations.

Key highlights of the two new laws are as follows:

1. Expanding participants of compulsory social insurance
Clause 1 Article 2 of the Social Insurance Law 2024 expands the scope of individuals required to participate in compulsory social insurance, including the following groups:

• Owners of household businesses with registered business licenses;
• Part-time staff in communes and neighborhoods;
• Employees working part-time but earning an income equal to or higher than the lowest salary on which compulsory social insurance is paid;
• Managers of enterprises or cooperatives who do not receive a salary;
• Individuals working under contracts labeled differently from labor contracts, provided there is salary payment and management or supervision involved;
• Standing militia personnel;
• Spouses accompanying officials on overseas assignments with living allowances provided;

This regulation aligns with the reform orientation set out in Resolution No. 28-NQ/TW, aiming to expand the coverage of social insurance and to adapt to the increasing diversity of the labor market.

2. Tightening Sanctions for Late or Evasion Payment of Social and Health Insurance Contributions
The Social Insurance Law 2024 and the Amended Law on Health Insurance 2024 clearly provide for the following:

• A clear distinction between late payment and evasion payment of insurance contributions;
• Mandatory full payment of any late or evaded contributions, along with interest of 0.03% per day on the total amount in violation;
• Administrative penalties in accordance with current regulations;
• Disqualification from commendation and awards.;
• Criminal liability for contribution evasion where criminal elements are established.

These provisions establish a clear legal foundation, enhance transparency, and reinforce deterrence against violations, even though administrative penalties continue to be applied under Decree No. 12/2022/NĐ-CP and Decree No. 117/2020/NĐ-CP.

3. Adjustment of the Timeframe for Mandatory Social Insurance Registration
As of July 1, 2025, employers are required to declare and submit the application for participation in compulsory social insurance within 30 days from the date an employee becomes subject to mandatory participation, rather than from the date of signing the labor contract as previously stipulated under the  Social Insurance Law 2014.

4. Better Protection of Employees’ Rights and Benefits
The Social Insurance Law 2024 introduces several more practical and human-centered provisions, including:

• Allowing sickness benefits for partial days off;
• Adding eligibility for maternity benefits in cases of employment termination due to infertility treatment;
• Social insurance fund covering health insurance premiums for employees on maternity leave for 14 or more working days in a month;
• Reducing the minimum contribution period for pension entitlement from 20 years to 15 years;
• Calculating pension based on a new reference wage level replacing the previous base salary.

5. Expanding employers’ rights and responsibilities
New entitlements for enterprises include:

• Suspend payment of compulsory social insurance premiums in accordance with Article 37 of this Law;
• Receive instructions for social insurance procedures from social security authorities.

Additional obligations include:

• Liability for compensation in case of violations of obligations toward employees;
• Coordination with the social insurance authority in recovering improper disbursements;
• Timely updating of employee information and returning social insurance books to employees.

These changes require enterprises to enhance their human resources management capabilities and legal compliance to avoid practical risks.

Midland & Partners’ Assessment:

From both a legal and practical business perspective, Midland & Partners considers that the The Social Insurance Law 2024 and the Amended Law on Health Insurance 2024 represent a comprehensive reform effort of Vietnam’s social security system, oriented toward broader coverage, enhanced compliance, and greater accountability of relevant stakeholders

For businesses, the new regulations impose greater compliance pressure—particularly in reviewing workforce structures, meeting registration deadlines, managing legal documentation, and controlling risks related to back payments, administrative penalties, or even criminal liability. At the same time, these changes offer opportunities for enterprises to standardize their HR management processes, improve transparency, and foster a sustainable, people-centered working environment.

Midland & Partners recommends that businesses:

• Proactively reassess their labor procedures – payroll – insurance, including informal workers and short-term contracts;
• Provide training to HR and accounting teams on the upcoming legal changes;
• Consider adopting digital HR management tools to monitor registration deadlines and social/health insurance obligations;
• Establish internal protocols for handling violations and back payments to avoid unnecessary compensation liabilities or criminal exposure.

As a legal partner committed to supporting the business community, Midland & Partners stands ready to provide legal consultation, compliance review, and tailored solutions to help enterprises effectively adapt to the upcoming legal changes from July 2025.

By Thanh Ngan – Midland & Partners