Do business households pay social insurance for their employees? Social insurance contribution rate of business households. Are business households fined for not paying social insurance?
Can business households pay insurance for employees and workers?
Pursuant to Article 2 and Article 3 of the Law on Social Insurance 2014, it is stipulated as follows:
- Employees (NLĐ) signing labor contracts for 1 month or more are subjects participating in compulsory social insurance (SI);
- Employers participating in compulsory social insurance include: business households and individuals hiring employees.
Accordingly, business households signing labor contracts with employees for 1 month or more must pay social insurance for employees.
>> See more: Subjects not required to participate in compulsory social insurance.
Regulations on social insurance contribution levels of business households
Pursuant to Decision 595/QD-BHXH 2017, business households must pay insurance funds for employees at the rates shown in the following table.
| Social insurance fund | HKD contribution level | Employee contribution level | |
| Unemployment insurance | Unemployment Insurance Fund | 1% | 1% |
| Health insurance | Health Insurance Fund | 3% | 1.5% |
| Social insurance | Sickness and maternity fund | 3% | – |
| Pension and death fund | 14% | 8% | |
| TNLĐ – BNN | 0.5% | – | |
| Total | 21.5% | 10.5% | |
Accordingly, the total compulsory social insurance contribution for employees of business households is 32%. Of which, business households must pay 21.5% and deduct 10.5% from employees’ salaries.
See also:
>> Regulations on the latest salary levels for social insurance, unemployment insurance, and health insurance;
>> Basic salary, regional minimum wage – insurance contribution rate;
>> Regulations on social insurance death benefits;
>> Conditions and levels of social insurance pension;
>> Conditions and levels of unemployment insurance benefits;
>> Conditions for maternity benefits.
Principles of social insurance payment of business households
When paying social insurance for employees, businesses need to ensure the following 5 principles:
- The social insurance benefit level is calculated based on factors such as: contribution level, contribution period and sharing among employees participating in social insurance;
- The compulsory social insurance contribution level is calculated based on the employee’s monthly salary;
- Employees who pay both compulsory and voluntary social insurance are entitled to retirement and death benefits according to the period of social insurance payment. The period of one-time social insurance payment that has been counted as one-time social insurance benefits is not counted as the period used as the basis for receiving social insurance benefits;
- For social insurance fund:
- Centralized, unified, public and transparent management;
- Use for the right purpose;
- Independent accounting according to component funds, groups of subjects implementing salary regimes according to state regulations and salary regimes according to employee regulations.
- Implementing social insurance is simple, easy, convenient, timely and ensures the rights of employees participating in social insurance.
See also:
>> Procedures for first-time registration for social insurance for business households;
>> Procedures for registering for social insurance for the first time for businesses.
Prohibited acts when paying social insurance of business households
Pursuant to Article 17 of the Law on Social Insurance 2014, business households are not allowed to perform the following acts:
- Evading or delaying payment of compulsory social insurance and unemployment insurance;
- Misappropriation of compulsory social insurance and unemployment insurance contributions and benefits of employees;
- Fraud, falsification of documents when participating in social insurance and unemployment insurance;
- Illegal use of social insurance and unemployment insurance funds;
- Causing difficulties, damage or obstruction of the legitimate rights and interests of employees;
- Accessing and using social insurance and unemployment insurance databases in violation of the law;
- Reporting false information or providing false data related to social insurance and unemployment insurance.
Penalty for not paying social insurance for business households
Pursuant to Article 39 of Decree 12/2022/ND-CP, the penalty for business households that hire or employ employees and sign labor contracts for 1 month or more without paying or paying social insurance for employees in violation of regulations is as follows:
➧ Fine from 12% – 15% of the total amount of compulsory social insurance and unemployment insurance payable at the time of making the administrative violation record (maximum 75,000,000 VND) for the following acts:
- Late payment of social insurance and unemployment insurance for employees;
- Paying social insurance and unemployment insurance at incorrect levels but not evading payment;
- Not paying enough social insurance for the number of employees eligible to participate in social insurance;
- Misappropriation of social insurance and unemployment insurance contributions of employees.
➧ A fine of 18% – 20% of the total amount of social insurance and unemployment insurance payable at the time of making the administrative violation record (maximum 75,000,000 VND) for the act of not paying social insurance and unemployment insurance for all employees subject to social insurance, but this act is not yet subject to criminal prosecution.
➧ Fines from 50,000,000 – 75,000,000 for the following acts:
- Evading social insurance and unemployment insurance payments but not to the extent of criminal prosecution;
- Changing the content of documents in the proposal dossier for the purpose of enjoying a lower contribution rate than the normal contribution rate to the occupational accident and disease insurance fund, but this act has not yet reached the level of being subject to criminal prosecution.
In addition, from July 1, 2025, business households that are late in paying compulsory social insurance for employees will have to pay the full amount of late payment, paying an amount equal to 0.03%/day based on the social insurance amount and the number of days of late payment to the social insurance fund.
>> See more: Penalties for companies that pay social insurance late.
Questions related to regulations on business households paying social insurance for employees
1. Do individual business households pay social insurance?
Business households signing labor contracts with employees for 1 month or more must pay social insurance for employees.
>> See details: Can business households pay insurance for employees?
2. Are individual business owners allowed to pay social insurance?
From July 1, 2025, the Law on Social Insurance takes effect, business owners will be subject to compulsory social insurance.
3. What is the social insurance contribution level for business households in 2024?
The total compulsory social insurance contribution for employees of business households in 2024 is 32%. Of which, business households must pay 21.5% and deduct 10.5% from employees’ salaries.
>> See details: Social insurance contribution rate of business households.
4. Will business households be fined if they pay social insurance late?
Enterprises that delay paying compulsory social insurance for employees will be fined from 12% – 15% of the total amount of compulsory social insurance and unemployment insurance payable at the time of making the administrative violation record (maximum 75,000,000 VND).
In addition, from July 1, 2025, business households that are late in paying social insurance for employees will have to pay the full amount of late payment, paying an amount equal to 0.03%/day based on the social insurance amount and the number of days of late payment to the social insurance fund.
>> See details: Penalty for not paying social insurance for business households.
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