Employee insurance management Vietnam

Faro Vietnam provides comprehensive outsourced social insurance services for businesses and household businesses: our specialized C&B – Social Insurance team handles all procedures for you, from salary scale development, reporting increases/decreases to closing accounts, maternity – sickness – retirement benefits, helping businesses comply with legal regulations and optimize costs.

Now you can focus on your business without worrying about accounting and taxes anymore.

1.  Three Typical Risks When Managing Social Insurance Yourself

• Incorrect Contribution Rates – Incorrect Target Groups: The new Social Insurance Law expands the scope of mandatory contributions and requires contracts of at least one month to participate in social insurance, easily leading businesses to overlook seasonal and part-time workers.
• Low Social Insurance Contributions Compared to Actual Pay: Low contract/social insurance contributions, high allowances and bonuses; When comparing data with Personal Income Tax, businesses risk being accused of tax evasion and being subject to retroactive collection with interest of 0.03% per day.
• Procedures arise continuously: Each increase/decrease, unpaid leave, maternity leave, work-related accidents, retirement, etc., has its own form, deadline, and process; making mistakes or submitting late easily leads to penalties and being assessed as a unit with weak labor management.

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2.    Warning of legal risks in Social Insurance 2025-2026

From July 1, 2025, the 2024 Social Insurance Law officially comes into effect, significantly expanding the scope of mandatory social insurance participation. Simultaneously, the increase in the regional minimum wage from January 1, 2026, is placing businesses before a wave of rigorous inspections and retroactive collection:

• Expanded scope of contributions: Mandatory participation for employees working under contracts of at least one month, part-time workers with minimum wage, business owners, and business managers.
• Tightening contribution criteria: Social insurance contribution salaries must not be lower than the "reference level" (2.34 million VND/month) and not lower than the regional minimum wage (Region I: 5,310,000 VND, Region II: 4,730,000 VND...). The contribution ceiling is up to 46.8 million VND/month.

3.  Penalties – Back taxes – Late payment interest for violations

According to Decree 12/2022/ND-CP and the 2024 Social Insurance Law, acts of late payment, incorrect payment, or circumvention of the law will face severe penalties:

• 12% – 15% penalty (maximum 75 million VND) for late payment, incorrect payment, or insufficient number of employees.
• 18% – 20% penalty for failure to pay social insurance and unemployment insurance for all employees subject to mandatory contributions.
• A fine of 50-75 million VND will be imposed for the act of EVADING CONTRIBUTIONS, and the full amount must be paid.
• Interest will be calculated at 0.03% per day on the total amount and number of days of late payment.

Especially risky from July 1, 2025: The Social Insurance agency will link data with the Personal Income Tax agency. Items such as "low base salary, high allowances," piecework contracts, etc., if found to have discrepancies, will be immediately subject to recovery and classified as social insurance evasion.
 

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4. Comprehensive Social Insurance Solutions for Businesses and Households

Faro Vietnam's comprehensive social insurance service is specially designed to standardize payroll, helping businesses optimize operating costs and providing absolute peace of mind during inspections and audits from relevant authorities. Register for service consultation

●    Complete Social Insurance & Payroll Procedures

All social insurance issues – from unit code registration, increase/decrease reporting, closing accounts to benefits – are handled and processed by the Thuan Thien team.
●    Data Matching from Social Insurance to Tax
Social insurance contribution salaries are designed to be synchronized with payrolls and personal income tax returns, minimizing the risk of retroactive collection due to data discrepancies.
●    Transparent Records, Ready for Inspection
Processes, forms, and documents are standardized and stored systematically; when the Social Insurance agency or the Department of Labor conducts an inspection, you can confidently open your records.

5.    Service Package Suitable for Various Business Types

Faro Vietnam provides flexible, comprehensive social insurance (BHXH) and human resource management services for various industries, businesses, and household businesses… with a reasonable fee structure based on the actual number of employees each month.

• Newly established businesses and household businesses need to register for BHXH and establish an initial payroll system.
• Businesses and household businesses that have been operating stably but do not yet have the conditions to establish a dedicated HR (C&B) department.
• Businesses that want to standardize employee records, contracts, and BHXH data to ensure legal compliance or prepare for state inspections.

The comprehensive service package includes procedures for reporting increases and decreases in the workforce, closing BHXH accounts, resolving welfare benefits (sick leave, maternity leave), and completing personnel records, giving businesses complete peace of mind when entrusting this process to a professional unit.

Contact us for quick support!
Faro Vietnam

• Email: service@farovietnam.com.vn

HANOI HEAD OFFICE

• Tel: + 84 24 3974 3091

HO CHI MINH CITY OFFICE

• Tel: + 84 28 3821 4654

Grow your business with our trusted Human Resource Solutions.