LEGAL UPDATE No. 04/2026
22 July 2026
On 15 July 2026, the Government issued Decree No. 283/2026/NĐ-CP (“Decree 283“) on administrative penalties in the fields of labour, social insurance and Vietnamese workers working abroad under contract. Decree 283 takes effect from 10 September 2026, replacing Decree No. 12/2022/NĐ-CP (“Decree 12“).
For employers operating in Vietnam, particularly foreign-invested enterprises managing sizeable or mixed workforces, Decree 283 warrants early attention. Fine levels are largely carried over from Decree 12, but the new framework reorganises certain penalty provisions to reflect the 2024 Law on Social Insurance and introduces more specific provisions linked to the foreign-worker framework under Decree No. 219/2025/NĐ-CP (“Decree 219“).
This Legal Update focuses on the provisions most relevant to employers’ payroll practices, compulsory social insurance compliance, employment termination and labour discipline, and the management of foreign workers.
1. General penalty structure
The core doubling rule is preserved. Subject to specified exceptions, the fines stated in Chapters II, III and IV of Decree 283 are the individual rates, and the fine imposed on an organisation for the same violation is twice that amount. Companies incorporated and operating under Vietnamese law, as well as branches and representative offices of Vietnamese or foreign companies operating in Vietnam, are treated as organisations for this purpose (Article 7.1 and Article 7.2(b)).
Accordingly, the fines shown below are the applicable organisation-level fines after applying the statutory doubling rule.
2. Social insurance
Decree 283 separates late registration, late payment and social insurance evasion into different penalty provisions. The applicable fine depends on the conduct involved, the number of affected employees or the amount of late or evaded contributions, as applicable.
One point worth noting is that Decree 283 expressly treats registering a salary serving as the basis for compulsory social insurance contributions below the amount required under Article 31.1 of the 2024 Law on Social Insurance as social insurance evasion. The individual fine is 18%–20% of the evaded amount. Applying the statutory doubling rule, the organisation-level fine is 36%–40% of that amount, capped at VND150 million (Article 44.2(a)).
On remediation, Decree 283 applies the mechanism prescribed by Articles 40.1 and 41.1 of the 2024 Law on Social Insurance. In addition to paying the outstanding contributions, an employer must pay an amount equal to 0.03% per day, calculated on the late or evaded contributions and the relevant number of days. This replaces the former formula under Decree 12, which was tied to twice the average investment return of the social insurance fund for the preceding year (Articles 43.4 and 44.3 of Decree 283).
| Violation | Organisation fine (VND) | Article |
| Failure to register, or incomplete registration, within the applicable period, where the conduct is not treated as evasion; scaled by affected headcount across eight brackets | 10M–150M | 43.2 |
| Late or insufficient payment of registered compulsory social insurance contributions | 24%–30% of the late amount, capped at 150M | 43.3 |
| Failure to register, or incomplete registration, after the statutory 60-day period; scaled by affected headcount across eight brackets | 12M–150M | 44.1 |
| Registering a contribution salary below the amount required under Article 31.1 of the 2024 Law on Social Insurance | 36%–40% of the evaded amount, capped at 150M | 44.2(a) |
3. Termination and labour discipline
Decree 283 largely carries forward the penalty framework under Decree 12 for violations relating to employment termination and labour discipline. These provisions cover, among other matters, failures to complete termination payments and social insurance procedures within the prescribed period; failure to pay severance or redundancy allowances; failure to maintain, register or properly communicate internal labour rules; disciplinary action taken contrary to the prescribed procedures or limitation period; and the use of monetary fines or salary deductions as a disciplinary measure (Articles 18 and 25).
The monetary fine may be accompanied by remedial measures, including payment of outstanding amounts and interest, completion of social insurance and unemployment insurance confirmation procedures, reinstatement of the employee, payment of salary for the period during which the employee was prevented from working, and repayment of amounts unlawfully deducted.
4. Foreign workers employed in Vietnam
This is the area in which Decree 283 introduces the most substantive changes compared with Decree 12, driven by the foreign-worker framework under Decree 219.
Decree 283 separately penalises a failure to notify, late notification or incomplete notification in three circumstances: where a foreign worker falls within a category for which no exemption certificate procedure is required; where a worker holding an exemption certificate will work for the same employer in more than one province or centrally governed city; and where a worker holding a work permit will do so. Employers with foreign staff working across multiple locations should review their notification arrangements against Decree 219 before the effective date (Article 13.1 of Decree 283; Articles 9.4, 9.5 and 22.5 of Decree 219).
| Violation | Organisation fine (VND) | Article |
| Failure to notify, late notification or incomplete notification for exempt workers, multi-province exempt workers or multi-province work-permit holders | 2M–6M | 13.1 |
| Employing a foreign worker outside the scope of the work permit or exemption certificate | 10M–20M per worker, capped at 150M | 13.2(a) |
| Employing foreign workers without valid work permits or exemption certificates: 1–10 / 11–20 / 21+ workers | 60M–90M / 90M–120M / 120M–150M | 13.5 |
| Altering or falsifying documents, or using forged documents, in a work-permit or exemption application | 80M–120M | 13.4 |
5. Transitional treatment
A violation that occurred and ended before 10 September 2026 remains subject to the rules in force when it occurred, even if it is detected or considered after Decree 283 takes effect. However, if the conduct began before that date but continues after Decree 283 takes effect, it will be handled under Decree 283 (Article 67).
Practical note
Before 10 September 2026, employers should review whether all employees subject to compulsory social insurance have been registered; whether the correct salary has been used as the contribution basis; whether there are any outstanding contributions; and whether termination and disciplinary procedures are being followed consistently.
Employers with foreign staff should also verify the validity and permitted scope of each work permit or exemption certificate and confirm that all notifications required under Decree 219 have been submitted on time and with complete information.
Conclusion
Decree 283 does not materially change every penalty applicable to employers. Its practical significance lies in the clearer classification of late payment and social insurance evasion, the express treatment of an incorrectly reduced contribution salary as evasion, the separate penalties for foreign-worker notification failures, and the application of the new regime to violations that continue after 10 September 2026. Employers should therefore review existing payroll and foreign-worker compliance before the Decree takes effect.
Navigate these shifting statutory frameworks with our dedicated Employment & Labor Compliance Team. We provide comprehensive risk audits to ensure your existing payroll and foreign-worker structures are fully compliant before the new penalties take effect.
Disclaimer
This Legal Update is for general informational purposes only and should not be construed as legal advice. For specific guidance tailored to your situation, please contact Vietridge Counsel.
Contact
Le Nguyen Huy Thuy
Managing Partner
VIETRIDGE COUNSEL
