Vietnam Social Insurance Compliance 2026: What Should Businesses Review?

2026 marks an important period for implementing and reviewing compliance with Vietnam’s 2024 Law on Social Insurance. Cross-checking data between tax authorities and social insurance agencies highlights the need for businesses to ensure consistency across employment records, payroll data and personal income tax (PIT) filings, helping identify potential underpayments, late contributions and associated financial liabilities.

1. Why Should Businesses Proactively Review Social Insurance Compliance?

Where income reported for tax purposes appears inconsistent with social insurance participation records, businesses may be required to provide supporting documents and explanations regarding employee eligibility, salaries used as the basis for contributions and the fulfillment of compulsory insurance obligations.

2026 is an important period for implementing and assessing compliance with the 2024 Law on Social Insurance, which took effect on 1 July 2025. Changes to mandatory participation, contribution bases and the treatment of late or evaded contributions require businesses to reassess their existing policies and records.

Notably, Decree No. 274/2025/ND-CP provides detailed regulations on handling late payments and evasion of compulsory social insurance and unemployment insurance contributions. Meanwhile, Decree No. 283/2026/ND-CP, governing administrative penalties for violations in the labor and social insurance sectors, took effect on 10 September 2026.

Businesses should therefore proactively review their records and identify potential compliance gaps rather than waiting for a request from the relevant authorities.

2. Identify Employees Subject to Compulsory Social Insurance

One of the most important compliance considerations is determining which employees are required to participate in compulsory social insurance.

Under the 2024 Law on Social Insurance, mandatory participation extends beyond employees working under labor contracts with a term of at least one month and covers other categories specified by law.

Importantly, an agreement may still give rise to compulsory social insurance obligations regardless of its title if it involves paid work subject to the management, direction and supervision of another party.

Businesses should pay particular attention to the following categories:

• Full-time and part-time employees: Review employment contracts, working arrangements, salary levels and eligibility for compulsory social insurance. For part-time employees, particular attention should be paid to the statutory minimum contribution-base requirements.
• Freelancers and independent contractors: Assess the actual nature of the working relationship, including work assignments, remuneration and the degree of management and supervision, rather than relying solely on the title of a service agreement.
• Interns and probationary employees: Examine actual working arrangements, contractual terms and applicable legal requirements. A distinction should be made between a separate probation agreement and a labor contract that includes a probationary period.
• Foreign employees working in Vietnam: Review contract duration, employment status and applicable exemptions. Under the 2024 Law on Social Insurance, foreign employees working under fixed-term labor contracts of at least 12 months with employers in Vietnam are generally subject to compulsory social insurance, except for specified cases such as intra-company transfers, employees who have reached retirement age at the time of signing the contract, or exemptions under applicable international treaties.
• Other employee categories: Identify individuals who are legally required to participate but have not been registered or for whom contributions have not been made in full.

Accurately determining employee eligibility helps businesses reduce the risk of omitting mandatory participants while maintaining appropriate documentation to substantiate cases where compulsory contributions are not required.

Practical Case: Are Interns Subject to Compulsory Social Insurance?

In October 2026, Vietnam Social Security provided guidance on a case involving a company in Ho Chi Minh City that had entered into internship agreements with five students, each receiving a monthly allowance of VND 5 million.

According to Vietnam Social Security, if an internship arrangement involves paid work subject to the company’s management, direction and supervision, it may be classified as an employment relationship, giving rise to compulsory social insurance obligations under the applicable regulations.

Key takeaway for businesses: The title “internship agreement” or the description of a payment as an “internship allowance” does not, by itself, determine whether social insurance contributions are required. Businesses should assess the actual nature of the work, the level of supervision and the terms of the agreement when determining their obligations.

3. Review Employment, Payroll and Insurance Documentation

Documentation prepared for compliance reviews or explanations to the authorities should demonstrate consistency between actual employment relationships, remuneration policies and social insurance participation records.

Corporate and employment records

• Enterprise Registration Certificate and other relevant corporate documents.
• Labor contracts, contract amendments, recruitment decisions, transfers, appointments, salary adjustments and employment termination records.
• Service agreements, internship arrangements and supporting documents reflecting actual working relationships.

Payroll documentation

• Salary scales and salary tables.
• Salary and bonus policies, allowance arrangements and other remuneration policies.
• Attendance records, detailed payroll reports and supporting payment documents.

Insurance records

• Lists of employees participating in social insurance, health insurance, unemployment insurance and occupational accident and disease insurance, as applicable.
• Registration documents, contribution adjustments and contribution histories.
• Insurance contribution reports and relevant supporting documents.

Which Payments Are Included in the Social Insurance Contribution Base?

The monthly salary used to calculate compulsory social insurance contributions includes the salary for the position or job, salary allowances and other additional payments that meet the statutory conditions.

However, not all income subject to personal income tax (PIT) is necessarily included in the social insurance contribution base. Businesses should review individual remuneration components in accordance with applicable regulations and reconcile them against employment contracts, remuneration policies and actual payment practices to determine the appropriate contribution obligations.

For foreign employees, allowances and employee benefits should also be assessed based on the nature of each payment and applicable legal requirements, rather than being automatically included in or excluded from the social insurance contribution base.

4. Reconcile Social Insurance Records with PIT Finalization Data

PIT finalization data is an important source of information for reconciling employment records, payroll information and social insurance participation.

Businesses may use the Annual PIT Finalization Return (Form 05/QTT-TNCN) and its relevant appendices to reconcile information against the List of Participants and Adjustments to Social Insurance, Health Insurance and Unemployment Insurance Contributions (Form D02-LT) under Decision No. 366/QD-BHXH of 2026, together with insurance contribution histories, payroll reports and employment records.

As these documents serve different purposes and cover different reporting periods, reconciliation should be performed by individual employee, relevant period and income component.

Key questions include:

• Does the list of individuals receiving income in the annual PIT finalization records reconcile with the company’s employment records?
• Are individuals receiving employment income but not participating in social insurance legally required to contribute?
• Have salaries, allowances and bonuses been correctly classified when determining the social insurance contribution base?
• Have differences between PIT-taxable income and salaries subject to social insurance contributions been properly explained and supported by documentation?
• Have employee registrations, terminations and contribution adjustments been recorded within the required timeframes?

PIT-taxable income and salaries used to calculate social insurance contributions are determined under different legal frameworks. A difference between these figures does not automatically constitute a compliance violation.

Nevertheless, businesses should prioritize reviewing unexplained discrepancies, identifying their underlying causes and maintaining adequate supporting documentation.

5. Assess Financial Exposure and Take Corrective Action

The financial consequences of non-compliance with social insurance obligations may extend beyond administrative penalties. Businesses may also be required to pay outstanding contributions and additional amounts arising from late payments or contribution evasion.

Under the 2024 Law on Social Insurance and Decree No. 274/2025/ND-CP, late payment or evasion of compulsory social insurance and unemployment insurance contributions may result in an additional payment calculated at 0.03% per day on the outstanding amount for the applicable period, subject to the relevant legal requirements.

Illustrative example

Assume a business is determined to have VND 100 million in overdue social insurance and unemployment insurance contributions for 365 days, with the entire amount subject to the 0.03% daily calculation throughout that period.

The additional payment would be:

VND 100 million × 0.03% × 365 days = VND 10.95 million.

In this hypothetical scenario, the business could be required to pay approximately VND 10.95 million in addition to the original VND 100 million, excluding any applicable administrative penalties.

This example is for illustration only. Actual liabilities must be determined based on the relevant contribution periods, applicable regulations and any transitional provisions or exceptions.

Where discrepancies extend across multiple reporting periods, the resulting liabilities may accumulate and place additional pressure on business cash flow.

When identifying potential non-compliance, businesses should take the following steps:

1. Identify the employees and periods involved.
2. Reconcile employment contracts, payroll records, insurance contribution data and payment documents.
3. Determine the reasons for missing registrations, underpayments or late contributions.
4. Assess required adjustments, outstanding contributions and additional amounts payable.
5. Prepare supporting documentation and explanations for submission when requested by the competent authorities.

6. Payroll and Social Insurance Compliance Support from Russell Bedford KTC

Effective payroll and social insurance management requires close coordination between employment documentation, remuneration policies, accounting records and tax obligations.

Through its payroll and social insurance support services, Russell Bedford KTC assists businesses with:

• Reviewing employee eligibility and salaries used as the basis for compulsory social insurance contributions.
• Reconciling payroll data, insurance records and annual PIT finalization information.
• Identifying inconsistencies and assessing potential contribution adjustments.
• Preparing supporting documentation and explanations for the relevant authorities.