The Vietnamese government has introduced strict penalties for employers who fail to comply with mandatory social insurance contributions. According to Decree No. 283/2026/ND-CP, individuals who evade these payments could face fines of up to 75 million VND, while organizations may incur fines up to 150 million VND, which is double the amount for individuals.

This decree, effective from September 10, 2026, outlines that employers must pay the full amount of social insurance contributions they have evaded, in addition to a daily penalty of 0.03% of the unpaid amount for each day of delay. The penalties are designed to encourage compliance and ensure that workers receive their entitled benefits.

Employers who do not register or inadequately register the number of employees required to participate in mandatory social insurance within 60 days of the deadline will also face fines based on the number of affected employees. The fines for both individuals and organizations will be determined according to the number of violations.

Furthermore, employers who register salaries for social insurance contributions that are lower than the legally mandated minimum will also be penalized. The fines for these infractions can range from 18% to 20% of the total unpaid contributions, with caps set at 75 million VND for individuals and 150 million VND for organizations.

In addition to financial penalties, employers are required to rectify their violations by properly registering all employees and making the necessary contributions to the social insurance fund. The Vietnam Social Insurance Agency has urged employers to proactively review their compliance to avoid penalties and ensure the legal rights and benefits of their workers are protected.