Implementing regulations on business owners participating in compulsory social insurance: Reviewing subjects, increasing coverage

BAC NINH - The Law on Social Insurance (amended) 2024, effective from July 1, 2025, stipulates that business owners with business registration must participate in compulsory social insurance. To develop this group of subjects, Bac Ninh Provincial Social Insurance coordinates with sectors and localities to review business households, focusing on propaganda and mobilization.

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According to the new regulations, business owners with tax codes and stable operations will be required to participate in compulsory social insurance. Accordingly, from July 1, 2025, business owners who are paying taxes by declaration method are required to participate; other business owners will participate from July 1, 2029. Regarding the contribution level, business owners can choose an appropriate level but it must not be lower than the basic salary (currently 2.34 million VND/month) and must not exceed 20 times this level; the contribution rate is 25%, of which 22% is contributed to the pension and death fund and 3% to the sickness and maternity fund.

Social Insurance officers at Tan Yen base propagate compulsory social insurance policy to vaccination service business establishments in Tan Yen commune.

Participants can choose to pay monthly, quarterly or every 6 months. Mr. Pham Trong Hue, Deputy Director of the Provincial Social Insurance, said: “By participating in compulsory social insurance, business owners and employees are entitled to basic benefits such as: Sickness, maternity, retirement and death. When eligible for retirement, employees are entitled to a monthly pension and are issued a free health insurance card.”

According to statistics, the whole province currently has about 28,500 business households that have declared and are paying taxes, concentrated in wards and communes such as: Bac Giang , Kinh Bac, Viet Yen, Tu Son, Que Vo, Hiep Hoa, Lang Giang... The ice cream production facility of Mr. Nguyen Huu Quang (born in 1971), Ao Sen quarter, Tu Son ward creates jobs and stable income for 10 workers. Although every month, Mr. Quang deducts a part of his income to pay social insurance for his workers, he cannot pay for himself because he does not directly participate in labor. Knowing that from July 1, the business owner is subject to compulsory social insurance, Mr. Quang went to Tu Son Social Insurance to register to participate.

Similarly, after 5 years of doing business, Mr. Nguyen Van Tan (born in 1981), residing in Cam village, Nha Nam commune, has 4 trucks, specializing in transporting goods for a business in the province. After being informed by the staff of the Tan Yen Social Insurance, he recently declared and paid compulsory social insurance for himself and 3 drivers, the payment rate is 585 thousand VND/person/month, equivalent to a person with an income of 2.34 million VND/month. "As a self-employed person, I never thought about having a pension when I retire. Now that I participate in social insurance, although I have to reduce a part of my income to pay, in return, my workers and I will have many benefits in the future," Mr. Nguyen Van Tan shared.

Diversified communication methods

In order for the policy to be implemented, in recent times, the Provincial Social Insurance has directed specialized departments and affiliated units to promote, flexibly and diversify forms of propaganda. At Tu Son Social Insurance, in order to develop compulsory social insurance participants in the business household group, in July, the unit posted 10 propaganda articles on zalo groups and social networks. For 11 registered household owners, the unit assigned local officers to directly guide the declaration procedures, advise on the contribution level and payment period.

To participate in compulsory insurance, business owners can choose an appropriate contribution level, but it must not be lower than the basic salary (currently 2.34 million VND/month) and must not exceed 20 times this level; the contribution rate is 25%, of which 22% is contributed to the pension and death fund and 3% to the sickness and maternity fund. Participants can choose to pay monthly, quarterly or every 6 months.

To achieve the goal of developing 150 to 200 business households to participate in compulsory social insurance in the last 6 months of the year, Tan Yen Social Insurance has established working groups for each household to propagate and mobilize. With areas with many business households, the unit also coordinates with local authorities to propagate on the grassroots radio system. Mr. Than Van Trinh, Deputy Director of Tan Yen Social Insurance, said: "We are currently coordinating with Tax Teams 2 and 3 ( Bac Ninh Provincial Tax) to review and classify groups of subjects eligible to participate in compulsory social insurance to focus on propaganda and mobilization. This is to ensure that no subjects are missed, helping them promptly access their legitimate benefits, avoiding delays or missing opportunities to participate."

To date, the province has more than 25,000 units participating in compulsory social insurance with nearly 865.9 thousand people paying insurance, an increase of more than 15,000 people compared to 2024. After 1 month of the compulsory insurance policy for business owners taking effect, the province has had 40 business owners participating. However, due to the large number of business households in the area, management and collection with this group will encounter many difficulties, the number of participants is still modest compared to the potential. Most business households do not have personnel in charge of accounting or doing administrative work, employees to report income, perform basic procedures such as: Registering to participate, reporting increases and decreases in the number of contributors, closing books, stopping payment or resolving short-term regimes (sickness, maternity) ...

To overcome this limitation, along with promoting the application of technology, using electronic communication channels such as: Website, fanpage and zalo account in propaganda, the Provincial Social Insurance requires specialized departments and grassroots social insurance to organize in-depth training sessions and widely propagate the policy. These activities are aimed at areas with many business households to help related individuals grasp the new regulations, understand their rights and responsibilities, and thereby proactively participate.

“In August, we will complete and issue detailed guidance documents on the components of the dossier and related procedures to send to organizations and individuals affected by the Law on Social Insurance. We will focus on applying technology and simplifying administrative procedures so that participants can easily access and conveniently register and participate in compulsory social insurance, contributing to building a strong and inclusive social security network,” Mr. Pham Trong Hue added.

Article and photos: Sy Quyet

Source: https://baobacninhtv.vn/thuc-hien-quy-dinh-chu-ho-kinh-doanh-tham-gia-bao-hiem-xa-hoi-bat-buoc-ra-soat-doi-tuong-tang-dien-bao-phu-postid423512.bbg