From July 1, individual business owners must participate in compulsory social insurance.

The Law on Social Insurance 2024 (effective from July 1, 2025) expands the scope of compulsory social insurance participation to many groups of subjects, including individual business owners.

The Law on Social Insurance 2024 (effective from July 1, 2025) expands the scope of compulsory social insurance participation to many groups of subjects, including individual business owners.

According to the provisions of the Law on Social Insurance (SI) 2014 (effective until June 30, 2025), individual business owners are not subject to compulsory SI. If needed, business owners must participate in voluntary SI.

However, from July 1, 2025, according to Clause 1, Article 2 of the Social Insurance Law 2024, business owners of business households registered for business according to Government regulations are subject to compulsory social insurance participation.

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 Social Insurance Law 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 contribution of a business household owner participating in social insurance is 25% of salary. The household owner can choose to pay monthly, every 3 months or every 6 months depending on the 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 business owners is 25% x 2,340,000 = 585,000 VND/month.

Source: https://phunuvietnam.vn/tu-1-7-chu-ho-kinh-doanh-ca-the-tham-gia-bao-hiem-xa-hoi-bat-buoc-20250610071029222.htm