I. Legal basis

• Law on Social Insurance 2024
• Circular No. 10/2020/TT-BLĐTBXH
• Official Dispatch No. 1198/CTL&BHXH-BHXH

II. What is voluntary social insurance?

Pursuant to Clause 4, Article 3 of the Law on Social Insurance 2024, voluntary social insurance is defined as follows:

Voluntary social insurance is a form of social insurance organized by the State under which Vietnamese citizens voluntarily participate and may choose contribution levels and contribution methods appropriate to their income.

III. Voluntary social insurance contribution rates from 1 July 2026

Pursuant to Clause 2, Article 31 of the Law on Social Insurance 2024, the income serving as the basis for calculating voluntary social insurance contributions shall be no less than the rural household poverty threshold and no greater than 20 times the reference level applicable at the time of contribution. (As the statutory base salary has not yet been abolished, the reference level is currently equivalent to the statutory base salary.) Specifically:

• According to the national multidimensional poverty standards for 2026, the rural household poverty threshold is VND 1,500,000 per person per month. Accordingly, the minimum income serving as the basis for calculating voluntary social insurance contributions remains VND 1,500,000 per month from 1 July 2026.
• The Government issued Decree No. 161/2026/ND-CP dated 15 May 2026 prescribing the statutory base salary. Pursuant to Decree No. 161/2026/ND-CP, effective from 1 July 2026, the statutory base salary is officially increased from VND 2.34 million per month to VND 2.53 million per month. Accordingly, the maximum income serving as the basis for calculating voluntary social insurance contributions is equal to 20 times the statutory base salary, i.e., VND 46,800,000 prior to 1 July 2026 and VND 50,600,000 from 1 July 2026 onward.

IV. Persons eligible for a lump-sum social insurance benefit

Pursuant to Article 102 of the Law on Social Insurance 2024, a participant shall be entitled to a lump-sum social insurance benefit if he or she falls under any of the following circumstances:

• Having reached the statutory retirement age as prescribed in Clause 2, Article 169 of the Labor Code but having accumulated less than 15 years of social insurance contributions and no longer continuing to participate in social insurance. In the event that the employee does not claim a lump-sum social insurance benefit, he or she may opt to receive a monthly allowance in accordance with Article 23 of this Law.
• Emigrating abroad for permanent residence;
• Being diagnosed with one of the following diseases: cancer, paralysis, decompensated liver cirrhosis, severe tuberculosis, or AIDS;
• Persons whose working capacity has been reduced by 81% or more, or persons with exceptionally severe disabilities;
• Employees who made social insurance contributions prior to the effective date of this Law and, after 12 months of ceasing to make further social insurance contributions, have accumulated less than 20 years of social insurance contributions.

V. Lump-sum voluntary social insurance benefit amount

The amount of the lump-sum social insurance benefit shall be calculated based on the number of years of social insurance contributions and the contribution base, with each year of contributions being calculated as follows:

• Equivalent to 1.5 times the average monthly income on which social insurance contributions were based for each year of contributions made before 2014. Where the contribution period includes both pre-2014 and post-2014 contributions, and the pre-2014 contribution period includes any odd months, such odd months shall be carried forward to the post-2014 contribution period for the purpose of calculating the lump-sum social insurance benefit.
• Equivalent to 2 times the average monthly income on which social insurance contributions were based for each year of contributions made from 2014 onwards.
• Where the total period of social insurance contributions is less than one year, the lump-sum social insurance benefit shall be equal to the total amount of contributions paid, but shall not exceed 2 times the average monthly income used as the basis for social insurance contributions.

VI. Payments Excluded from the Salary Base for Social Insurance Contributions

Pursuant to Clause 5, Article 3 of Circular No. 10/2020/TT-BLĐTBXH (currently under the administrative authority of the Ministry of Home Affairs), and Official Dispatch No. 1198/CTL&BHXH-BHXH dated 5 September 2025 issued by the Department of Wages and Social Insurance under the Ministry of Home Affairs to the American Chamber of Commerce in Vietnam, detailed guidance is provided on 14 categories of income that are exempt from compulsory social insurance contributions.

Typical categories of income exempt from compulsory social insurance contributions include performance-based bonuses (e.g., annual and quarterly bonuses), mid-shift meal allowances, and allowances for fuel, telephone expenses, transportation, housing, childcare, and the care of young children.

However, to qualify for exemption from compulsory social insurance contributions, such payments must be expressly provided for in the employer’s Salary and Bonus Regulations or the Employment Contract, including the applicable benefit amount and eligibility criteria. Otherwise, they may not be recognized by the social insurance authority as exempt income. Please note that Official Dispatch No. 1198/CTL&BHXH-BHXH serves solely as an implementation guidance document and does not have the status of a normative legal instrument. In the event of any dispute, enterprises should refer to the relevant primary legislation and other applicable legal instruments.

VII. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

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