Highest and lowest compulsory social insurance contribution rates for business owners from July 1

Business owners must participate in compulsory social insurance from July 1, with the lowest level being 585,000 VND and the highest being 11.7 million VND.

Social insurance participation propaganda

According to the representative of Vietnam Social Security, the provisions of the Law on Social Insurance 2024 (effective from July 1, 2025) expand the scope of participation in compulsory social insurance to many groups of subjects, including individual business owners.

The Law on Social Insurance 2014 (effective until June 30, 2025) stipulates: Owners of individual business households are not subject to compulsory social insurance. If required, business owners must participate in voluntary social insurance.

However, from July 1, 2025, according to Clause 1, Article 2 of the Law on Social Insurance 2024, the business owner of a business household registered for business according to Government regulations is subject to compulsory social insurance.

Specifically, regarding the compulsory social insurance contribution rate for individual business owners: According to points a and b, clause 4, article 33, the compulsory social insurance contribution rate is 3% to the sickness and maternity fund, and 22% to the retirement and death fund.

Regarding the basis for payment, according to Point d, Clause 1, Article 31 of the Law on Social Insurance 2024, business owners can choose their salary as the basis for compulsory social insurance payment, but the lowest is equal to the reference level and the highest is 20 times the reference level at the time of payment.

Therefore, the monthly social insurance contribution of business owners is 25% of their salary. Business owners can choose to pay monthly, every 3 months or every 6 months depending on their needs.

Regarding the reference level, Clause 13, Article 141 of the Social Insurance Law 2024 stipulates: When the basic salary has not been abolished, the reference level prescribed in this law is equal to the basic salary. At the time the basic salary is abolished, the reference level shall not be lower than that basic salary.

Currently, the basic salary is 2,340,000 VND/month. Therefore, the lowest social insurance contribution for a business owner is 25% x 2,340,00 = 585,000 VND/month.

The highest contribution is calculated as follows: 20 x 2,340,000 = 46.8 million. Therefore, the highest social insurance contribution for a business owner is 25% x 46.8 million = 11.7 million.

Business owners can choose to pay monthly, every 3 months or every 6 months depending on their needs.

VN (according to VNA)

Source: https://baohaiduong.vn/muc-dong-bao-hiem-xa-hoi-bat-buoc-cao-nhat-va-thap-nhat-voi-chu-ho-kinh-doanh-tu-1-7-413246.html