Key Highlights of Decree No. 158/2025/ND-CP on Detailing and Guiding the Implementation of Certain Articles of the Law on Social Insurance Regarding Compulsory Social Insurance
Decree No. 158/2025/ND-CP promulgated by the Government on 25 June 2025 and effective from 1 July 2025 provides detailed regulations and guidance on the implementation of certain articles of the Law on Social Insurance 2024. Through this article, TNTP analyzes the key new provisions of Decree No. 158/2025/ND-CP to help enterprises, employers, and employees promptly update, comply, and properly execute your rights and obligations in accordance with current legal regulations.
1. Specific cases subject to compulsory social insurance contributions
• Clause 2 Article 3 of Decree No. 158/2025/ND-CP provides detailed guidance on cases in which household business owners are required to participate in compulsory social insurance. Specifically:
– Household business owners whose household businesses are registered and pay taxes under the declaration-based tax method;
– Household business owners whose household businesses are registered and pay taxes under the presumptive tax method shall be required to participate in compulsory social insurance from 1 July 2029.
This regulation reflects a clear roadmap for expanding the scope of compulsory social insurance to self-employed business owners. It aims to enhance social welfare while providing small household businesses with sufficient time to prepare and adjust their business operations before compulsory participation becomes applicable.
• Participation in social insurance for probationary employees is governed by Clause 5 Article 3 of Decree No. 158/2025/ND-CP. Accordingly, employees working under a probationary contract in accordance with labor laws are not subject to compulsory social insurance.
Note: A “probationary contract in accordance with the law” refers to a contract that fully complies with the statutory requirements on form, content, and probationary period as prescribed by the Labor Code, including the maximum allowable probationary period depending on the job position. If a probationary contract does not comply with the law (for example, if the probationary period exceeds the statutory limit), the employee may be deemed to be working under a labor contract and, therefore, required to participate in compulsory social insurance.
2. Guidance on the application of the reference level
• The 2024 Law on Social Insurance introduces the definition and regulatory framework for the “reference level.” Accordingly, the reference level is the monetary amount determined by the Government and used as the basis for calculating contribution rates and benefit levels under certain social insurance regimes. To provide specific guidance on its application, Article 5 of Decree No. 158/2025/ND-CP stipulates that: While the statutory base salary remains in effect, the reference level under the Law on Social Insurance shall be equal to the statutory base salary. Once the statutory base salary is abolished, the reference level must not be lower than the statutory base salary at the time of its abolition.
Thus, Decree No. 158/2025/ND-CP provides clear guidance on how to apply the reference level to ensure continuity and stability in the calculation of social insurance contributions and benefits. This helps prevent disruption and ensures that individuals who are currently subject to salary and social insurance policies tied to the statutory base salary continue to receive their full entitlements.
3. Guidance on determining wages used as the basis for compulsory social insurance contributions
Article 7 of Decree No. 158/2025/ND-CP provides detailed guidance on determining wages used as the basis for compulsory social insurance contributions for two groups: employees whose wages are determined by the employer and employees working part-time.
• For the group of employees whose wages are determined by the employer, the wage used as the basis for compulsory social insurance contributions will include: the wage according to the job or title, wage-based allowances, and other additional payments.
• For the group of employees working part-time, if their monthly wage is equal to or higher than the minimum wage used as the basis for compulsory social insurance contributions, they are still subject to compulsory social insurance under the provisions of the Law on Social Insurance 2024. In such cases, the wage used for calculating social insurance contributions is the monthly wage as agreed by the parties, determined as follows:
– In cases where wages are calculated by the hour: Monthly wage = hourly wage rate × number of working hours in the month under the employment contract;
– In cases where wages are calculated by the day: Monthly wage = daily wage rate × number of working days in the month;
– In cases where wages are calculated by the week: Monthly wage = weekly wage rate × number of working weeks in the month.
Decree No. 158/2025/ND-CP therefore provides clear and specific guidance on determining wages used as the basis for compulsory social insurance contributions, ensuring consistency and suitability for different groups of employees, including both full-time and part-time workers.
4. Regulations on the collection of arrears and retroactive contributions to social insurance
In addition to the group of subjects whose wage adjustments result in an increased wage base for social insurance contributions, Decree No. 158/2025/ND-CP supplements two additional cases in which arrears and retroactive compulsory social insurance contributions must be applied, as well as the timing for such collection, as follows:
• For Vietnamese employees working abroad who have their contracts extended or sign new employment contracts directly in the host country, retroactive social insurance contributions shall be made after the employee returns to Vietnam. The amount of arrears to be paid is equal to the total compulsory social insurance contributions payable.
The deadline for making retroactive contributions is the last day of the month immediately following the month in which the wage adjustment decision is issued or the month in which the employee returns to Vietnam. After this deadline, if the employer or employee delays or evades making compulsory social insurance contributions, they will be subject to sanctions in accordance with the law.
Under the previous regulations of Decree No. 115/2015/ND-CP, the time limit for making retroactive social insurance contributions was six months. The new regulation therefore significantly shortens this timeframe.
• For compulsory participating business household owners; enterprise managers; representatives of state capital contributions in enterprises as prescribed by law; members of the Board of Directors; General Directors; Directors; members of the Supervisory Board or controllers; and other managerial positions in cooperatives who are subject to compulsory social insurance, failure to contribute social insurance by the statutory deadline will result in arrears collection for the period of delayed payment.
The amount of arrears shall equal the total compulsory social insurance contributions payable plus late-payment interest calculated at 0.03% per day on the payable amount for the period overdue.
These regulations on the deadline for retroactive contributions aim to ensure compliance with compulsory social insurance obligations and to prevent delays that may affect employees’ lawful rights and benefits.
Decree No. 158/2025/NĐ-CP introduces and clarifies several important provisions relating to compulsory social insurance. These regulations not only enhance transparency and uniformity in implementation but also contribute to protecting employees’ rights and supporting employers in fulfilling their statutory obligations in a proper and comprehensive manner.
The above is TNTP’s legal article on the topic: “Key Highlights of Decree No. 158/2025/ND-CP Detailing and Guiding the Implementation of Certain Articles of the Law on Social Insurance Regarding Compulsory Social Insurance”. We hope that this article will be useful to our readers.
Sincerely,
