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Collaborator or piecework contracts: when is compulsory social insurance still due?

By Nguyễn Quốc Trung — Deputy General Director · Updated 2026-08-03

Many companies sign "collaborator" or "piecework" contracts believing this removes any social insurance obligation. That is not quite true. Since 1 July 2025, when the Law on Social Insurance No. 41/2024/QH15 took effect, whether a person falls under compulsory social insurance is determined by the substance of the working relationship — not by the label on the contract.

The contract's name is no longer a shield

The Law on Social Insurance No. 41/2024/QH15 and Decree No. 158/2025/NĐ-CP determine who is subject to compulsory social insurance based on the actual content of the arrangement. If an arrangement — whether called a "collaborator", "piecework" or "service" contract — in fact involves paid work performed under the management, direction and supervision of the hiring party, then it is an employment relationship.

Two conditions must be met together for the compulsory social insurance obligation to arise: a contract term of one full month or more and a monthly wage at or above the reference level. Only when one of the two is missing does the arrangement fall outside compulsory coverage. This is a point many businesses do not fully grasp, which leads to incorrect application.

Three signs of an employment relationship

• Subject to management and direction: the worker must follow the company's assignments, internal rules, working hours and processes — unlike an independent contractor who controls how the work is done.
• Regular, stable pay: payment is tied to working time (per month, per shift) rather than to the outcome of an independent, self-contained job.
• Ongoing, repetitive work: the tasks are part of the company's routine operations, not a project with a clear start and end.

When all three signs are present, calling the contract a "collaborator" agreement does not change its substance, and the social insurance authority has grounds to reclassify the relationship as employment.

When is piecework genuinely piecework?

Not every piecework contract gets reclassified. Legitimate piecework typically has these features: the contractor controls the method, timing and means of performance; is paid for the result of a specific, self-contained job with a clear start and end; and is not subject to day-to-day direction like an employee. Typical examples include hiring an individual to design a brand identity, translate a document, or repair a specific part of a project.

Conversely, if the "contractor" in reality works at a fixed place within the company, on set hours and under daily assignment, then even if the contract says "piecework", the substance remains an employment relationship. The dividing line lies in the degree of autonomy and independence of the work, not in the title of the document.

Social insurance cost if coverage applies

For part-time staff who fall under coverage, compulsory social insurance is calculated on the reference level of 2,530,000 VND per month. Specifically:

• The employer pays 21.5% = 543,950 VND per person per month
• The employee pays 10.5% = 265,650 VND per person per month
• Total 809,600 VND per person per month

This is a transparent, fixed figure that is easy to budget. Compared with the cost and risk of a later arrears collection, paying correctly from the outset is usually the safer option for a business.

The risk of getting the substance wrong

When the social insurance authority reclassifies a "collaborator" as an actual employee, the company may have to pay back social insurance for the period it should have contributed, plus late-payment interest, and may face administrative penalties. Beyond the financial cost, this triggers file reviews, bookkeeping adjustments and strain on the relationship with workers.

The risk rises when a company maintains a large body of "collaborators" doing routine work over a long period — this is the group most likely to be cross-checked and reclassified.

Three lawful ways to formalize

Rather than looking for a different label for an employment relationship, a business should choose a compliance path that fits its real needs.

1. Convert to an employment contract and pay full social insurance. Suitable when the work is ongoing and the worker is a long-term fit. This is the most transparent approach and fully removes reclassification risk.

2. Use a labor supply service. When demand is seasonal or fluctuates, a business can partner with a provider holding a labor sub-leasing licence. The provider acts as the employer of the workers, taking on the contract and social insurance responsibility. Learn more about the [labor supply service](/en/cung-ung-lao-dong/).

3. Outsource payroll and compliance to a specialist. When a business wants to manage its own staff but needs payroll, social insurance filing and personal income tax handled lawfully, it can use an [outsourced payroll service](/en/tinh-luong-thue-ngoai/) to standardize the whole process.

For a foreign company with no legal entity in Vietnam that needs to hire and pay Vietnamese staff lawfully, the [EOR — Employer of Record](/en/eor-vietnam/) model lets workers be contracted and covered by social insurance in full, without setting up a company.

Nhan Kiet as your partner

Nhan Kiet Manpower Supply Co., Ltd (Tax code 0308022768) has operated since April 2009, now in its 17th year in human resources and labor compliance. Nhan Kiet holds labor sub-leasing licence No. 15/2019/SHCM along with ISO 9001:2015, ISO 45001 and ISO 14001 certifications, and currently serves more than 500 clients across 34 provinces and cities with more than 200 operations staff.

If your business uses collaborators, piecework or seasonal labor and wants a review to [formalize your workforce](/en/hop-thuc-hoa-lao-dong/) lawfully, the Nhan Kiet team can help assess the substance of each type of relationship and propose a suitable course of action.

Contact: Nguyen Quoc Trung — Deputy General Director, phone 0908 636 108, email trungnguyen@nhankiet.vn. Office: Room 202, Building 57, 57 Le Thi Hong Gam, Ben Thanh Ward, Ho Chi Minh City — phone 028 3505 4224.

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