Three cases requiring back payment of Compulsory Social Insurance under Decree 158/2025/ND-CP
Back payment of compulsory social insurance is one of the measures implemented to ensure full compliance with the legal duty to pay compulsory social insurance. Decree No. 158/2025/ND-CP, which details and guides the implementation of certain provisions of the Social Insurance Law addressing compulsory social insurance, will go into effect on July 1st, 2025. This decree includes important new provisions to improve compliance with compulsory social insurance. Employers and employees are paying significant attention to the clear specification of three specific examples involving back payments in this decree. Understanding and complying with these new laws will assist enterprises in reducing risks, avoiding administrative penalties, and ensuring employees’ lawful rights and benefits.
1.Cases Subject to Back Payment of Compulsory Social Insurance under Decree No. 158/2025/ND-CP
According to Decree No. 158/2025/ND-CP, the following three specific cases will require back payment of compulsory social insurance if contributions are made at the wrong time or beyond the permissible deadline:
a.Back payment due to retrospective salary increase
During the process of managing employees and implementing wage policies, employers may need to adjust salary levels to reflect changes in enterprise circumstances or as agreed upon with employees. In cases where the employer increases the salary with retrospective effect (meaning the salary increase is applied to a period in the past), the compulsory social insurance contribution must be adjusted in line with the new salary. The difference resulting from the salary increase will be subject to back payment. This applies even if the adjustment results from an internal decision of the enterprise or a collective agreement rather than an order from an inspection authority.
b.Back payment for employees working abroad
In the context of an increasing number of Vietnamese employees working abroad under contracts, protecting social insurance benefits is essential. According to Point b, Clause 1, Article 8 of Decree No. 158/2025/ND-CP, Vietnamese employees who are working abroad under contracts and either extend their current contracts or sign new ones in the host country are required to continue participating in compulsory social insurance. If they do not make contributions while working abroad, they will be required to pay for the entire unpaid period upon returning to Vietnam. This provision guarantees that the contribution period remains uninterrupted, thereby preserving employees’ rights and benefits. Maintaining continuous compulsory social insurance contributions, including while working abroad, safeguards long-term benefits for employees and contributes to the stability of the national social security system.
c.Back payment due to late payment beyond the permissible deadline
To strengthen compliance and ensure fairness in fulfilling compulsory social insurance obligations, the law specifies regulations for household enterprise owners and managers of enterprises or cooperatives who do not receive a salary. If these individuals make contributions later than the latest allowable deadline, all overdue contributions will be subject to back payment. According to Point b, Clause 4, Article 33 of the Social Insurance Law 2024, the latest deadline for these subjects is the last day of the month following the payment cycle (which can be monthly, quarterly, or semi-annually, depending on the selected method). If contributions are made after this deadline, the entire amount will be treated as a late payment and collected as a compulsory social insurance debt.
2.Method for Determining the Back Payment Amount
For the cases stated in points a and b above, the back payment amount is determined based on the compulsory social insurance contribution rates provided in Articles 33 and 34 of the Social Insurance Law 2024. If by the last day of the month following the month of the salary adjustment or the employee’s return to Vietnam the back payment has not been made, the calculation will follow Clause 1, Article 40 and Clause 1, Article 41 of the Social Insurance Law 2024.
For the case stated in point c above, the back payment amount includes the compulsory social insurance contribution specified in Point a, Clause 4, Article 33 of the Social Insurance Law 2024, as well as late payment interest calculated at the rate of 0.03% per day on the unpaid amount, multiplied by the number of days past the latest permissible deadline as specified in Point b, Clause 4, Article 33 of the Social Insurance Law 2024.
3.Responsibilities of Employers
In addition to the provisions on how to calculate the back payment amount, the law also clearly defines the responsibilities of employers in fulfilling their obligations to pay compulsory social insurance for employees. Specifically, employers must pay the full amount of compulsory social insurance in accordance with Clause 1, Article 40 and Clause 1, Article 41 of the Social Insurance Law 2024 for employees who are eligible for benefits or who have left employment or terminated their labor contracts. Full and timely payment ensures that the social insurance authority can fully process entitlements for employees. If the full amount has not been paid, the social insurance authority will process entitlements based on the actual contribution period. Once the outstanding amount is collected, the contribution period will be updated and the benefit level adjusted accordingly.
Decree No. 158/2025/ND-CP not only reinforces the responsibility to participate in compulsory social insurance but also clarifies back payment situations that were previously not explicitly regulated. Back payment of compulsory social insurance is not only a legal consequence but also a test of transparency and compliance by enterprises in labor relations. Instead of waiting for inspection or audit, enterprises should proactively review, correct and adjust in a timely manner, especially in the context of increasingly strict legal requirements.
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