Changes to Vietnam’s Social and Health Insurance policies from July 2025

As Vietnam continues its strong economic growth in recent years, updates to Social and Health insurance policies have become increasingly important in ensuring the well-being and benefits of employees nationwide.

Two major legal documents — Law on Social Insurance No. 41/2024/QH15 and the revised Law on Health Insurance No. 51 — have been officially passed and will come into effect on 1 July 2025. These new regulations mark a significant step forward in the country’s efforts to improve the national Insurance system, with key changes aimed at enhancing employee protection and long-term Social security.

In this article, we will provide a detailed overview of the changes introduced in these two laws, highlighting key updates and comparing them with previous regulations.

Our goal is to help businesses and organisations stay well-informed and prepared, ensuring full compliance with the new legal requirements from 1 July 2025.

Update on Law on Social Insurance No. 41/2024/QH15

Expansion of the mandatory Social Insurance coverage

From July 2025, the following groups will be required to participate in the mandatory Social Insurance scheme, marking a significant expansion compared to the previous law:

• Part-time officials at commune, village, and neighborhood levels: This expansion aims to protect the rights of individuals who do not receive regular salaries but contribute meaningfully to their communities.
• Registered household business owners: Previously not subject to mandatory Social Insurance, these individuals will now be required to participate. They may choose their contribution level, ranging from a reference rate up to 20 times that reference rate.
• Unpaid managers of enterprises and cooperatives: These individuals do not receive a fixed salary but are responsible for managing enterprises or cooperatives and will now be included under the mandatory Social Insurance scheme.
• Part-time employees: Employees with part-time contracts will be required to participate in the Social Insurance scheme if their salary meets or exceeds the statutory minimum wage.

Previously, only employees with labour contracts working for companies or production facilities of a certain size were subjected to mandatory Social Insurance.

This expansion will help enhance the coverage and fairness of the Social security system by extending protection to a broader group of employees.

Contribution rate:

• Part-time employee: The contribution rate will be determined in accordance with government regulations.
• Registered household business owners and unpaid managers: They may voluntarily choose their contribution level, with a minimum equal to the reference rate and a maximum of up to 20 times the reference rate. Changes to the selected contribution level may only be made after a minimum period of 12 months from the previous selection.
• Part-time employees: They are subject to mandatory Social Insurance contributions if their monthly salary is equal to or higher than the minimum salary used as the contribution base.

Establishment of a new reference contribution rate

Starting from 1 July 2025, the “reference rate” will replace the current basic salary as the basis for calculating Social Insurance contributions and entitlements:

• Consumer Price Index (CPI)
• Economic growth rate
• State budget capacity
• Social Insurance fund balance capacity

Previously, Social Insurance contributions were calculated based on the basic salary. However, the new reference rate will provide greater flexibility and allow for adjustments in line with the economic context, thereby contributing to the sustainability and improvement of the Social Insurance fund.

Notes: From 1 July 2025, the temporary reference level is equal to the current basic salary of VND 2.34 million/month (according to Decree No. 73/2024). However, when the basic salary is completely abolished, the reference level will be regulated by the Government but not lower than the current figure.

Expanded benefits for sickness and maternity

Several notable updates have been introduced regarding sickness and maternity benefits under both compulsory and voluntary Social Insurance schemes, including:

• Part-time officials are now entitled to additional sickness and maternity benefits
• Half-day sick leave is now allowed (previously only full-day leave was permitted)
• The number of antenatal check-up days has been increased to a maximum of 2 days, regardless of distance from medical facilities (previously only allowed for those living far from healthcare centers)
• Female employees undergoing fertility treatment may now qualify for maternity leave if they have contributed for at least 6 months within the 24 months prior to childbirth
• Male employees are now entitled to 5–14 days of paternity leave, depending on the case, within 60 days after their wife gives birth (previously limited to 30 days)
• Voluntary Social Insurance participants will now receive a childbirth allowance of VND 2 million per child

These expanded sickness and maternity benefits reflect meaningful progress in protecting the health and rights of employees—especially male employees and part-time officials.

Adjustment of pension eligibility conditions

The minimum contribution period for male employees to qualify for a retirement pension has been reduced from 20 years to 15 years.

Under the previous law, male employees were required to contribute to Social Insurance for at least 20 years to be eligible for a pension. The new regulation helps ease the burden on employees and enables those who have contributed for less than 20 years to still qualify for retirement benefits.

Regulations on one-time Social Insurance withdrawal

Employees who contribute to Social Insurance after 1 July 2025 may be eligible for a one-time lump – sum withdrawal if one of the following conditions is met:

• Reached retirement age but have contributed for less than 15 years
• Permanently relocate abroad
• Diagnosed with serious illnesses such as cancer, paralysis, cirrhosis, AIDS, etc…
• Suffering from a working capacity loss of 81% or more or classified as having a particularly severe disability

Previously, in addition to the above cases, employees who had ceased working and were no longer participating in Social Insurance anywhere, and who voluntarily requested a withdrawal, were also eligible for a one-time payment.

Electronic Social Insurance book and digital transactions

• From 1 January 2026: Electronic Social Insurance books will be issued.
• From 1 January 2027: All procedures related to Social Insurance benefits will be processed entirely through digital platforms.

The transition to electronic Social Insurance books and digital transactions aims to save time and enhance transparency in the management and access of Social Insurance information.

Penalties for late or evasive Social Insurance contributions

If an organisation fails to make the required contributions within 60 days, it will:

• Be considered as evading Social Insurance obligations
• Be required to pay the full outstanding amount
• Be subjected to interest of 0.03% per day on the delayed amount

The new regulations impose stricter penalties and shorter enforcement timelines compared to previous rules, aiming to deter organisations from deliberately avoiding Social Insurance contributions.

Updates on the amended Law on Health Insurance (Law No. 51/2024/QH15)

Classification of Health Insurance participants

Under the new regulation, participants in the health insurance system are classified into five main groups based on who is responsible for paying the insurance contributions, as follows: