Closing social insurance debt loopholes to protect workers' rights

Prolonged debt in social insurance (BHXH) by employers not only deprives workers of benefits but also undermines trust in social security policy. As a result, stakeholders say a risk-sharing mechanism is needed to protect workers when violations occur due to circumstances beyond their control.

Loss of benefits after years of contributions

After 19 years of continuous BHXH participation, Mr. Tran Viet Hung, a former technician at Bình Đông Hung Plastic Mechanical Co., Ltd. in Ho Chi Minh City, discovered that his employer had owed BHXH for 16 years. In 2019, the company’s financial difficulties led to delayed wages, leaving his family in hardship. He resigned close to age 60. During the procedures, he was shocked to learn that over his entire tenure, the company had only contributed BHXH for 3 years, despite monthly deductions for BHXH, BHYT, and unemployment insurance being taken from his pay.

Mr. Hung said he sought explanations from company leadership but received no resolution because the firm faced the risk of dissolution. “Considering the many years of loyalty, I did not sue. But the consequence is that, upon leaving, I received no benefits. Now over 60, with no pension, I still have to work to make ends meet while my health declines and income is unstable,” he said.

In another case, after many years at Phu Phong Glass Co., Ltd. (manufacturing — trading — services), Mr. Hung’s medical check-up in 2023 revealed that the company had not paid BHXH, BHYT, or unemployment insurance for employees during 2019–2023. He was refused BHYT.

“Although court judgments have been in effect for a long time, the workers at Vinh Thong Co., Ltd. Manufacturing — Trade — Service still have not recovered the BHXH debt.”

Also in a separate dispute, Mr. V. resigned and sued after the company owed more than VND 54 million in wages. In August 2024, the Tan Binh District Court (old jurisdiction) issued a decision recognizing a settlement requiring the company to pay back overdue wages before December 31, 2024 and fulfill BHXH obligations before January 31, 2025. However, the company did not implement the decision, continuing to delay despite enforcement actions. The company has since ceased operations, putting Mr. V. at risk of losing five years of BHXH contributions and failing to meet pension eligibility criteria when he is near 60.

Scale of BHXH payment arrears and unresolved claims

According to BHXH Ho Chi Minh City, as of April 9, 2026, 27,852 units had been late on BHXH payments for three months or more, with many debtors having long-standing arrears. Nationwide, by the end of 2025, late payments accounted for about 3% of what is due. Among the arrears, around VND 4 trillion belongs to the group considered difficult to recover, including failing businesses, dissolved firms, or those without a legal representative, affecting about 206,000 workers. More than 125,000 people have not yet had their benefits resolved due to interruptions in participation.

Proposals: risk reserve and “advance benefits”

At a social feedback conference on the draft Law on Amending and Supplementing Several Articles of BHXH, Do Van Thuc, Deputy Head of the LĐLĐ (Labor Confederation) in Hai Phong, said protecting workers’ BHXH rights is urgent. He emphasized the BHXH principle of “pay-in together, benefits together, share the risk,” arguing that workers should not bear the entire burden when they have fulfilled their obligations.

He proposed studying the establishment of a risk reserve mechanism within the BHXH system. The fund could be formed from contributions or penalties paid by violating employers to temporarily compensate eligible workers whose rights are disrupted. However, he noted that building such a fund must be based on careful calculations of target objects, expenditure levels, and fund balance.

Nguyen Thanh Tung, Vice Chairman of the Vietnam Construction Workers’ Union, similarly argued that without timely measures, interruptions in workers’ rights can erode confidence in the BHXH policy and may lead to more one-time BHXH withdrawals.

Alongside a reserve fund, many experts proposed an “advance benefits” mechanism within the existing framework. Under this approach, BHXH authorities could pay in advance to eligible workers, with reimbursement later recovered from the employer or using penalties to restore funds. Supporters said this option avoids creating a new fund while still ensuring timely benefits for workers.

Nguyen Hong Van, HR manager at a company in Ho Chi Minh City, said short-term financial solutions are only interim support. In the long term, she argued that governance improvements, data transparency, and stricter enforcement of the law are needed to resolve BHXH debt sustainably.

Focus on enforcement and limiting overlap

BHXH experts said the main advantage of a reserve fund would be ensuring timely benefits for workers in debt-ridden enterprises. However, they also noted that the current system already includes separate funds for different purposes, including illness, maternity, retirement, death, and unemployment insurance. Adding another fund could create overlap, increase financial pressure, and raise administrative costs.

Therefore, stakeholders said initial steps should include public awareness to promote lawful compliance, while simultaneously increasing inspections, monitoring, and strict handling of violating enterprises to curb BHXH debt and protect workers’ rights in a sustainable manner.