Owners of registered household businesses, who pay taxes using the declaration method, may be subject to mandatory social insurance, as from July 1, 2025, since the Social Insurance Law 2024 takes effect. 

In a draft decree detailing and guiding the implementation of certain articles of the Social Insurance Law, the Ministry of Labor, Invalids and Social Affairs has proposed two options for owners of registered household businesses to participate in mandatory social insurance.

Under first option, owners of registered household businesses who pay taxes using the declaration method, and others who do not declare taxes but request to participate in mandatory social insurance, will be subject to this type of insurance. 

Under the second, all owners of registered household businesses who request to participate in mandatory social insurance.

Commenting on this matter, Vietnam Social Security proposed a roadmap for owners of registered household businesses to participate in this type of insurance.

Accordingly, from July 1, 2025, owners of registered household businesses paying taxes using the declaration method will participate in mandatory social insurance. Meanwhile, owners of registered household businesses paying taxes using the fixed-amount method will participate two years later,  from July 1, 2027. Owners of registered household businesses outside of these two groups will participate in mandatory social insurance from July 1, 2029.

In cases where business owners registered under the declaration method transition to the fixed-amount tax method before July 1, 2027, or are no longer in either the declaration or fixed-amount group before July 1, 2029, they must still continue participating in mandatory social insurance as stipulated.

Similarly, if owners of registered household businesses paying taxes under the fixed-amount method transition to another group (outside the previously mentioned groups) before July 1, 2029, they will still be subject to mandatory social insurance.