In the draft Law amending and supplementing the Law on Social Insurance, currently under appraisal, the Ministry of Home Affairs proposes state budget support for contributions for four groups subject to mandatory social insurance (BHXH) participation. It also encourages localities to provide additional support based on their specific conditions.

The four groups include: registered business household owners; enterprise managers, controllers, representatives of state capital or enterprise capital; members of the Board of Directors, general directors, directors, members of the Supervisory Board or controllers, and other elected management positions of cooperatives and cooperative unions who do not receive salaries; and Vietnamese laborers working abroad, or non-salaried spouses accompanying members of Vietnamese state representative agencies abroad on official assignments who receive living allowances.

Hang Dao Street, Hanoi – a hub for many business households selling clothes and accessories. *Photo: Hoang Giang*

Under current regulations, these four groups fully cover their social insurance contributions, with no employer participation. For instance, registered business household owners will be subject to mandatory contributions starting 1/7/2025 for those using the declaration method; other household owners will follow from 1/7/2029. According to 2024 statistics, the country has approximately 80.000 business households paying taxes via the declaration method and over 2 million paying via the flat-rate method.

Business household owners' social insurance contribution rate is 25% of their average reference salary, comprising 22% for the Pension and Survivor's Benefits Fund and 3% for the Sickness and Maternity Fund. Additionally, 4,5% goes to the Health Insurance Fund. With these rates, household owners contribute over one million dong monthly for social and health insurance, based on an average reference salary of 3,5 million dong.

Household owners can choose their reference salary for social insurance contributions, with a minimum equal to the reference level and a maximum of 20 times that amount. By 11/2025, over 12.300 business household owners nationwide will participate in mandatory social insurance, with an average reference salary of 3,5 million dong per month.

The Ministry of Home Affairs explains that despite mandatory contributions, their participation obligation is similar to voluntary social insurance. This creates a psychological comparison, as the voluntary sector receives state budget support for contributions, while these groups, especially business household owners, do not.

Current law stipulates state budget support of 20-50% of voluntary social insurance contributions, based on rural poverty standards, for a period not exceeding 120 months. Participants may receive support depending on local policies. This policy currently applies to poor households, near-poor households, those living in island communes and special zones, ethnic minorities, and some specific groups.

The draft law is expected to be submitted to the National Assembly for comments and approval during the october session, taking effect from 1/3/2027.

By the end of 2025, the country will have 21,5 million social insurance participants, representing 45% of the working-age population. This includes approximately 18,9 million in the mandatory sector and 2,6 million in the voluntary sector. By 2027, the total number of social insurance participants is projected to reach 24,6 million, unemployment insurance 18,8 million, and health insurance 99,3 million. The number of people receiving pensions, monthly social insurance benefits, and unemployment benefits will also increase as coverage expands.

Ha Phuong