Under the Law on Social Insurance 2024, employers are required to register and make full and timely contributions to compulsory social insurance (SI) and unemployment insurance (UI) for their employees in accordance with statutory regulations.
If an enterprise is found to have delayed or evaded contributions, it must pay the entire outstanding amount together with interest of 0.03% per day calculated on the unpaid sum and number of days of delay or evasion. In addition, acts of evasion may be subject to administrative penalties or even criminal prosecution if the conduct meets the criminal elements prescribed in the Criminal Code.
On October 16, 2025, the Government issued Decree No. 274/2025/NĐ-CP (“Decree 274”) providing detailed guidance on the implementation of several provisions of the Law on Social Insurance. The Decree clarifies the determination and handling of acts of delayed or evaded SI and UI contributions.
Below, ATA highlights key points enterprises should note to ensure compliance and mitigate legal risks during their operations.
1. Time of determination of acts of evasion of compulsory SI and UI contributions
a. Failure to declare or submit participation dossiers: For cases where the employer intentionally fails to declare or submit SI or UI participation dossiers for employees, the time of evasion is determined from the day following the latest statutory payment deadline.
b. Underreporting wages or contribution amounts:
Where the employer intentionally declares or pays SI or UI contributions lower than the required amount, the time of evasion is determined based on the contribution method:
+ Monthly payment: from the day after the last day of the month following the month in which the wage used for contribution arises;
+ Quarterly or semi-annual payment: from the day after the last day of the month immediately following the contribution cycle.
c. Failure to pay or insufficient payment within 60 days after the latest payment deadline:
+ If the enterprise receives a written reminder from a competent authority within 45 days after the latest payment deadline, the time of evasion is determined from the 61st day after the payment deadline;
+ If the written reminder is received after 45 days from the latest payment deadline, the time of evasion is determined from the 15th day after the issuance date of the written reminder.
2. Time limits for remediation and explanation of late or evaded SI and UI contributions
In addition to making timely registrations and payments, where an enterprise inadvertently fails to fulfill its obligations and receives a reminder from the competent authority, it must submit a written explanation stating the reasons for the delay before the 25th day of the month in which the reminder is issued.
The competent authority may issue such reminders (including via the enterprise’s registered email) within the first 10 days of the month, so employers should remain vigilant to avoid missing official communications.
3. Cases not considered as evasion of compulsory SI and UI contributions
Decree 274 provides that enterprises shall not be considered as evading SI or UI contributions where the delay is caused by force majeure events — circumstances that are objective, unforeseeable, and unavoidable despite all necessary measures and capabilities having been exercised.
Force majeure events recognized under Decree 274 include those officially declared by competent authorities concerning disaster prevention, emergency situations, civil defense, or epidemic control, such as:
(i) Natural disasters including storms, floods, landslides, earthquakes, major fires, prolonged droughts, and other severe natural events directly and seriously affecting business operations;
(ii) Dangerous epidemics officially declared by competent authorities, which significantly impact business operations and employers’ financial capacity;
(iii) Declared emergency situations that unexpectedly and severely disrupt the operations of organizations or employers;
(iv) Other force majeure events as prescribed under civil law.
Decree No. 274/2025/NĐ-CP takes effect from November 30, 2025.
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