Some of the latest regulations on Social Security Law in the US

Some of the latest regulations on Social Security Law in the US Five Groups Subject to Compulsory Social Insurance Participation and New Provisions on Lump-Sum Social Insurance Benefits and Wage Bases for Social Insurance Contributions — Effective from July 1, 2025

On June 25, 2025, the Government of Vietnam issued Decree No. 158/2025/NĐ-CP, detailing and guiding the implementation of several provisions of the Law on Social Insurance with respect to compulsory social insurance (hereinafter referred to as "Decree 158"). The Decree consists of 7 chapters and 45 articles and will come into force on July 1, 2025.

Five Groups Subject to Compulsory Social Insurance
Some of the latest regulations on Social Security Law in the US

According to Decree 158, there are five categories of individuals required to participate in compulsory social insurance:

1. Employees defined under Points a, b, c, g, h, i, k, l, m, and n, Clauses 1 and 2, Article 2 of the Law on Social Insurance.

Employees specified at Points a, b, c, i, k, and l of Clause 1 and Clause 2, Article 2, who are sent for study, internship, or business trips domestically or abroad while still receiving salaries from domestic sources, shall remain subject to compulsory social insurance.
Some of the latest regulations on Social Security Law in the US

2. Business Household Owners

Owners of registered business households as defined at Point m, Clause 1, Article 2 of the Law on Social Insurance are subject to compulsory social insurance if:

• They pay tax using the declaration method;

• They are not already included in the groups described above and will be subject to compulsory insurance from July 1, 2029.

3. Individuals Falling into Multiple Categories

For individuals simultaneously falling into several categories listed under Clause 1, Article 2 of the Law on Social Insurance, participation is determined as follows:

• If they fall under Clause 2 above and also under any of the categories listed at Points b, c, d, đ, e, i, a, l, k, n, h, or g, Clause 1, Article 2, they shall contribute as per the first applicable group listed in order.

• If they fall under Point n, Clause 1, Article 2, and simultaneously under any of the points b, c, d, đ, e, i, a, l, or k of Clause 1, Article 2, participation will be based on the first applicable group listed in the given order.

4. Individuals Receiving Monthly Social Insurance Allowances Who Are Not Subject to Compulsory Insurance Participation

This includes:

• Individuals receiving monthly allowances due to loss of working capacity;

• Individuals receiving monthly allowances under Decree No. 09/1998/NĐ-CP and its amendments;

• Individuals receiving monthly allowances under Decision No. 91/2000/QĐ-TTg, Decision No. 613/QĐ-TTg, etc., concerning those who ceased receiving loss-of-capacity benefits;

• Former military personnel and police officers with less than 20 years of service, who served in the war against the U.S. or other post-war efforts and are now receiving monthly benefits under Decisions No. 142/2008/QĐ-TTg, 38/2010/QĐ-TTg, 53/2010/QĐ-TTg, or 62/2011/QĐ-TTg;

• Individuals receiving monthly allowances under Article 23 of the Law on Social Insurance.

5. Part-Time Employees with Low Incomes and Probationary Workers

Individuals employed part-time under Point a, Clause 1, Article 2 of the Law whose monthly wages, as calculated under Clause 2, Article 7 of this Decree, are lower than the statutory minimum wage base for compulsory contributions, and those working under probationary contracts, are not subject to compulsory social insurance.

Lump-Sum Social Insurance Benefits

Decree 158 details provisions for lump-sum social insurance payments under Article 70 of the Law on Social Insurance as follows:

1. Eligibility Based on Non-Participation for 12 Consecutive Months
Some of the latest regulations on Social Security Law in the US

Employees eligible under Point đ, Clause 1, Article 70 must meet the following:

• Have social insurance contribution periods before July 1, 2025 (the effective date of the new Law), with at least part of the contribution period calculated for benefits;

• Have not participated in compulsory insurance for 12 consecutive months immediately preceding the application month, excluding months not subject to compulsory participation as defined in Clause 5, Article 33, and Clause 3, Article 34 of the Law;

• At the time of application, the individual must not be participating in compulsory or voluntary social insurance.

2. Dual Eligibility for Lump-Sum and Pension Benefits

If an individual is eligible for both lump-sum social insurance under Point đ, Clause 1, Article 70, and for a pension under Clause 1, Article 64 of the Law, the benefit to be applied will depend on the employee’s written request.

Wage Base for Compulsory Social Insurance Contributions

Decree 158 also clarifies the salary basis for compulsory social insurance contributions as outlined in Clause 1, Article 31 of the Law:

The monthly salary, as per Point b, Clause 1, Article 31, includes:

• Basic salary per job or title, determined based on the employer’s wage scale under Article 93 of the Labor Code, as agreed in the labor contract;

• Salary allowances to compensate for work conditions, job complexity, or other factors not fully reflected in the basic salary. These must be fixed and stated in the labor contract, excluding variable allowances based on productivity or performance;

• Other fixed monthly supplements paid regularly and stably, also listed in the labor contract.

For different pay structures:

• Hourly wages: Multiply hourly wage by total monthly hours;

• Daily wages: Multiply daily wage by number of working days per month;

• Weekly wages: Multiply weekly wage by number of working weeks per month.

Special Cases:

• For non-specialized staff at the commune, village, or residential group level (Point k, Clause 1, Article 2), the contribution base is the monthly allowance. If the allowance is lower than the statutory minimum, the minimum wage base applies.

• For foreign workers (Point i, Clause 1, Article 2), the wage base is their legally entitled salary.

• If the salary is paid in foreign currency, it is converted into VND using the average buying exchange rate via bank transfer published by four state-owned commercial banks on January 2 for the first half of the year and July 1 for the second half. If these days fall on holidays, the rate of the next working day is used.