Vietnam Social Insurance: New employees must have mandatory social insurance paid even during a month they still draw unemployment benefits
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Based on:Ministry of Finance
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Vietnam Social Insurance (BHXH) has answered a query from an employee about mandatory social insurance obligations after she stopped receiving unemployment benefits mid-month to start a new job. She began working in mid-December and worked continuously through month-end, but her new employer refused to pay social insurance for that month, citing advice that she had already received a full month of unemployment benefits under her prior benefit decision. In its official response, BHXH Vietnam confirmed that under the 2024 Law on Social Insurance, the Law on Employment, and their implementing guidance, an employee who starts working, earns wages, and works continuously through month-end is subject to mandatory social insurance (BHXH), health insurance (BHYT), unemployment insurance (BHTN), and occupational accident/disease insurance (BHTNLD-BNN) starting that same month. The fact that the employee is also entitled to a full final month of unemployment benefits under the benefit-termination rule (Clause 4, Article 19 of Decree 374/2025/ND-CP) does not exempt the mandatory social insurance obligation that arises from the actual employment relationship. BHXH said it will coordinate with the employer to review records and guide retroactive payment of BHXH, BHYT, BHTN, and BHTNLD-BNN contributions for the employee. This has practical significance for employers: a business cannot refuse to register a newly hired employee for mandatory social insurance simply because that employee is still within a prior unemployment-benefit month, and the employee does not need to repay the unemployment benefit before enrolling. Employers should proactively review payroll records and make retroactive contributions to avoid breaching the mandatory contribution obligation under Clause 5, Article 32 of the Law on Social Insurance.
The Question
An employee held a decision to receive unemployment benefits (TCTN) for the period from July 30 to December 29. On December 10, she found a new job and her unemployment benefits were terminated under the applicable rule, but she remained entitled to the full final benefit month (November 30 to December 29) under Clause 4, Article 19 of Decree 374/2025/ND-CP: "An employee currently receiving unemployment benefits whose benefits are terminated during the days of the month in which benefits are being received shall still receive unemployment benefits for the full month."
Starting December 10, the employee began working at a company continuously, without a break exceeding 14 days during the month. However, the company said it could not pay social insurance for December because the social insurance agency had advised that, since she had already received unemployment benefits for that month, she could not be enrolled in social insurance. The company told her that to enroll for December she would first need to contact the employment service center to repay the final month's unemployment benefit. When she contacted the employment service center, it confirmed she had received the benefit correctly and declined to accept repayment.
The employee asked why she could not be enrolled in social insurance for December when, under Clause 5, Article 32 of the Law on Social Insurance, an employee who does not receive wages for 14 or more working days in a month is not required to pay social insurance that month, and she had in fact worked continuously from December 10 without a break exceeding 14 days.
Official Answer from Vietnam Social Insurance
Based on the 2024 Law on Social Insurance, the Law on Employment, and their implementing guidance, since the employee began working at the company on December 10, worked continuously through month-end, and received wages, she is subject to mandatory social insurance, health insurance, unemployment insurance, and occupational accident/disease insurance starting from December 2025.
To protect the employee's rights, the social insurance agency will coordinate with the employer to review the records and, where needed, guide the employer to make supplementary retroactive contributions of social insurance, health insurance, unemployment insurance, and occupational accident/disease insurance for December 2025 for the employee, in accordance with the law.
Practical Takeaways for Employers and Employees
- Receiving a full final month of unemployment benefits under the benefit-termination rule (Decree 374/2025/ND-CP) is a separate entitlement under the unemployment insurance regime; it does not exempt the mandatory social insurance obligation that arises from an actual, ongoing employment relationship under the Law on Social Insurance.
- Employers cannot refuse to enroll a newly hired employee in mandatory social insurance simply because that employee is within their final month of unemployment benefits, and the employee is not required to repay the unemployment benefit before enrolling.
- Employers should proactively review payroll records for similarly situated new hires and make full retroactive contributions of social insurance, health insurance, unemployment insurance, and occupational accident/disease insurance to avoid breaching the mandatory contribution obligation under Clause 5, Article 32 of the Law on Social Insurance.