In brief
On 16 October 2025, the Vietnamese government issued Decree No. 274/2025/ND-CP (“Decree 274”) regulating penalties for late payment and evasion of compulsory social insurance (SI) and unemployment insurance (UI) contributions, as well as the procedures for complaints and denunciations related to SI.
Decree 274 took effect on 30 November 2025.
Recommended actions
Employers should review their current compulsory insurance contribution status and procedures to avoid the penalties outlined in Decree 274.
Please contact us if you require further analysis of the impacts of the updated penalties and procedures under Decree 274.
In more detail
Penalties for late payment and evasion of SI and UI contributions
Under Decree 274, in the case of late payment (within 60 days) or evasion (in excess of 60 days) of SI and UI contributions, employers will be subject to: (i) compelled payment of unpaid amounts; (ii) late payment interest (of 0.03% per day calculated on the total unpaid amount and the number of days the payment is overdue); and (iii) administrative fines, of 24% to 30% of the total amount of the due SI/UI contributions for late payment (capped at VND 150 million), and VND 100 million to VND 150 million for evasion (where the violation has not reached the level of criminal liability).
SI agencies are now required to review and notify employers of any outstanding amounts within the first 10 days of each month.
Calculating missing contributions
Decree 274 provides detailed rules on how to calculate the amounts and duration of late or evaded contributions. These calculations will vary based on context, including whether the delay is due to missed contribution deadlines, failure to register the number of employees required to participate in compulsory SI and UI, or underreporting wages, etc.
Evasion exemptions
Missing contributions may be exempted from being deemed as evasion if they are due to natural disasters, epidemics, states of emergency, or other force majeure events as prescribed by law.
Although these cases can be exempted from an evasion classification, they can still be treated as late payments (in which case, late payment penalties may still apply).
Updated procedures for complaints
Decree 274 sets out procedures for handling complaints and denunciations related to alleged SI violations, clarifying the authority for resolving complaints at different administrative levels. In particular, first-time complaints will be resolved by the head of the SI agency that receives the complaint, and second-time complaints will be escalated to the head of the direct upper-level SI agency.
Decree 274 also states that the relevant complaint resolution entity must enforce or issue formal implementation instructions within five working days of issuing the decision on complaint resolution.
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Hoang Anh Nguyen, Special Counsel, has contributed to this legal update.
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