Should freelancers and small traders without an employment contract join social insurance? And which type — compulsory or voluntary? This article compares the two under the Law on Social Insurance 2024 and the currently effective guiding decrees.
Quick comparison table
| Criteria | Compulsory social insurance | Voluntary social insurance |
|---|---|---|
| Covered persons | Employees with labor contracts, cadres, civil servants, public employees… (Article 2.1, Law on Social Insurance 2024) | Vietnamese citizens aged 15 or older who are not subject to compulsory insurance (Article 2.4, Law on Social Insurance 2024) |
| Benefits | Sickness, maternity, occupational accident – occupational disease, retirement pension, survivorship | Retirement pension, survivorship; plus a maternity allowance of VND 2,000,000 per child funded by the state budget (Articles 94–95 — a new point) |
| Contribution | Based on salary (e.g., employees 8%, employers 17.5% into the funds…) | Self-selected level (rural poor-household standard × chosen coefficient); the State subsidizes part of the contribution by group |
| Guiding decree | Decree 158/2025/ND-CP (effective 01/7/2025), replacing Decrees 115/2015 and 143/2018 | Decree 159/2025/ND-CP |
| Freelancers | Not covered — unless they sign a labor contract | The very target group — should join |
Analysis of each difference
1. Covered persons: the line is “having a labor contract or not”
Compulsory social insurance applies to employees under labor contracts, cadres, civil servants, public employees and other groups under Article 2.1 of the Law on Social Insurance 2024. Voluntary insurance is for Vietnamese citizens aged 15 or older who are not subject to compulsory coverage — exactly Article 2.4 (not Article 2.3, as some outdated materials mistakenly cite). Freelancers and small traders are precisely the group voluntary insurance is designed for.
2. Benefits: voluntary is narrower, but with a new maternity point
Compulsory insurance covers five benefit groups: sickness, maternity, occupational accident – occupational disease, retirement, survivorship. Voluntary insurance covers retirement and survivorship only. However, the Law on Social Insurance 2024 adds a notable new benefit: voluntary participants receive a maternity allowance of VND 2,000,000 per child from the state budget (Articles 94–95) — an incentive to join.
3. Contributions: voluntary is flexible, with state support
Compulsory contributions are salary-based at fixed rates shared by employee and employer. Voluntary insurance lets participants choose their contribution level based on the rural poor-household standard multiplied by a chosen coefficient, while the State subsidizes part of the contribution depending on the group (poor households, near-poor households, others). Details are set out in Decree 159/2025/ND-CP.
4. New legal framework: Decrees 143/2018 and 115/2015 no longer apply
From 01/7/2025, Decree 158/2025/ND-CP replaces Decrees 115/2015 and 143/2018 on compulsory social insurance. All citations must follow the new decree; citing the old ones as current authority is no longer correct.
Practical notes
- Freelancers should join voluntary social insurance as early as possible to accumulate enough contribution time for a pension.
- When moving between freelance work and contracted employment (or vice versa), compulsory and voluntary contribution periods are aggregated for pension entitlement.
- Joining voluntary insurance is simple — register at a social insurance agency or an authorized collection agent; check the state subsidy level for your group.
Conclusion
Freelancers are not subject to compulsory social insurance — voluntary social insurance (Article 2.4 of the Law on Social Insurance 2024, guided by Decree 159/2025/ND-CP) is the right choice, offering pension, survivorship benefits, and a VND 2,000,000-per-child maternity allowance from the state budget. Joining early is the proactive way to secure your future.
Disclaimer: This article was prepared by the AI Legal Council based on research of the Law on Social Insurance 2024, Decree 158/2025/ND-CP and Decree 159/2025/ND-CP in force at the time of writing, for general reference only. It does not constitute legal advice for any specific case.
Transparency notice: This article was drafted by an artificial intelligence system (AI Legal Council) and has undergone internal quality review; it does not purport to be the opinion of a licensed human lawyer.
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