Regulations on mandatory social insurance participation for non-salaried enterprise managers

The Social Insurance Law 2024, effective from July 1, 2025, has adjusted and supplemented the group of individuals required to participate in mandatory social insurance. The goal is to enhance coverage and ensure benefits for employees and those involved in enterprise management activities. Notably, there’s a new provision concerning enterprise managers who do not receive a salary (Article 2.1 (n) of Social Insurance Law 2024). This group was not previously subject to mandatory participation, but under the new regulations, they will be required to contribute to social insurance like other employee groups. 

This change impacts not only on individuals holding management positions in enterprises but also affects human resource organization strategies, operating costs, and overall legal compliance for businesses. This article will analyze some relevant regulations on this matter. 

1. Non-Salaried Enterprise Managers 

The concept of an enterprise manager, as defined by the Enterprise Law 2020, refers to managers of private enterprises and company managers, including: 

1. Owner of a private enterprise.  
2. General partner.  
3. Chairman of the Members’ Council, member of the Members’ Council. 
4. Company President.  
5. Chairman of the Board of Directors, member of the Board of Directors.  
6. Director or General Director, and  
7. Individuals holding other management titles as stipulated in the company’s charter. 

Accordingly, a non-salaried enterprise manager (“NSEM“) can be understood as an individual holding one of these positions in an enterprise but not having an employment agreement with the enterprise and not receiving any wages or salaries from the enterprise. 

2. Regulations on Social Insurance Participation 

2.1 Basis for social insurance contributions:

According to Article 31.1.(d) of the Social Insurance Law 2024, NSEMs can choose a salary as the basis for mandatory social insurance contributions. This amount must be at least equal to the reference level and no more than 20 times the reference level at the time of contribution. 

• According to Article 7.1 of the Social Insurance Law 2024, the reference level is an amount determined by the Government to calculate contribution levels and benefit levels for certain social insurance schemes specified in this Law. 

• According to Article 141.13 of the Social Insurance Law 2024, until the base salary is abolished, the reference level specified in this Law is equal to the base salary. When the base salary is abolished, the reference level will not be lower than that base salary. 

Currently, the law has no specific regulations on the reference level, nor has it abolished the base salary. Therefore, the base salary is still used to determine the reference level.  

According to Article 3.2 of Decree 73/2024/ND-CP, the current base salary is VND 2,340,000. Thus, the minimum salary for social insurance contributions is VND 2,340,000, and the maximum is VND 46,800,000. 

2.2. Monthly Social Insurance Contribution Rates: 

According to Article 32.4 of the Social Insurance Law 2024, NSEMs must contribute: 

• 3% of the salary used as the basis for mandatory social insurance contributions to the sickness and maternity fund; 

• 22% of the salary used as the basis for mandatory social insurance contributions to the retirement and survivorship fund. 

2.3. Cases Excluded from Social Insurance Participation as NSEMs: 

Under the law, an NSEM who has previously participated in mandatory social insurance in the following cases will not be required to participate in mandatory social insurance as a non-salaried enterprise manager: 

1. Case 1: If the individual works at another enterprise, cooperative, or cooperative union, they will participate in social insurance at that first enterprise, cooperative, or cooperative union (Article 2.5.(c) of the Social Insurance Law). 
2. Case 2: The NSEM has reached the retirement age as stipulated by the Labor Code and meets the conditions to receive social insurance benefits (Article 2, Clause 7 of the Social Insurance Law 2024).  According to Article 169.2 of the Labor Code 2019, by 2025, the retirement age for males is 61 years and 3 months, and for females, it is 56 years and 8 months. 
3. Case 3: If the individual has previously participated in mandatory social insurance under one of the following groups, they will participate in mandatory social insurance according to the corresponding group and in the order of precedence (according to Article 2.5.(e) of the Social Insurance Law 2024 and Article 3.3 of Decree 158/2025/ND-CP): 

1. Individuals working under indefinite-term labor contracts or definite-term labor contracts with a term of one month or more;  
2. Cadres, civil servants, and public employees;  
3. Defense workers and public security workers, and those working in cipher organizations;  
4. Officers, professional soldiers of the People’s Army; officers, non-commissioned officers, and technical professional officers of the People’s Public Security; those working in cipher organizations receiving salaries equivalent to military personnel;  
5. Non-commissioned officers, soldiers of the People’s Army; non-commissioned officers, conscripted soldiers of the People’s Public Security; military, police, and cipher academy students receiving living allowances;  
6. Permanent militia;  
7. Enterprise managers, supervisors, state capital representatives, enterprise capital representatives as stipulated by law; members of the Board of Directors, General Directors, Directors, members of the Supervisory Board or supervisors, and other elected management titles of cooperatives, cooperative unions as stipulated by the Law on Cooperatives who receive salaries;  
8. Non-specialized communal, village, or residential group officials;  
9. Individuals specified in item (1) working part-time, with monthly wages equal to or higher than the minimum salary for mandatory social insurance contributions. 

3. Occupational Accident and Disease Insurance: 

According to Article 43.1 of the Law on Occupational Safety and Hygiene 2015, as amended by Article 139.1 (a) of the Social Insurance Law 2024, NSEMs as defined in Article 2.1.(n) of the Social Insurance Law 2024 are not subject to the occupational accident and disease insurance scheme. 

4. Health Insurance: 

According to Article 12 of the Health Insurance Law 2008, as amended by Article 1.10 of the amended Health Insurance Law 2024, NSEMs are subject to health insurance participation. 

Health insurance contribution rate: According to Article 13.1.(b) of the Health Insurance Law 2008, as amended by Article 1.11 of the amended Health Insurance Law 2024, the monthly contribution for NSEMs is a maximum of 6% of the monthly salary used as the basis for mandatory social insurance contributions, and this amount is paid by the individual. 

However, according to Article 13.5.a of the Health Insurance Law 2024, if an individual simultaneously belongs to multiple health insurance participant groups, they will contribute health insurance according to the first group identified in the order of precedence specified in Article 12 of this Law. Therefore, if an NSEM has previously participated in health insurance, they are not required to contribute health insurance for this position.  

5. Unemployment Insurance: 

According to Article 43.1 of the Employment Law 2013, mandatory unemployment insurance participants are employees working under labor contracts or working contracts. 

Since NSEMs do not sign labor contracts or working contracts and do not receive salaries, they are not subject to unemployment insurance participation as stipulated by law. 

Date Written: 25/07/2025

Share: