Abstract

Compulsory social insurance is a key pillar of the social security system. However, some enterprises exploit legal loopholes by establishing sham civil transactions and contracts to evade compulsory social insurance contributions, directly affecting employees’ rights and the sustainability of the national social insurance fund. This article analyzes the legal nature of evading compulsory social insurance obligations through sham contracts. It also examines and evaluates the relevant provisions of the 2024 Law on Social Insurance and analyzes a representative case in Hop Thanh Commune, Lao Cai Province. On this basis, the article identifies difficulties and limitations in detecting, controlling, and addressing such conduct. It subsequently proposes several recommendations to improve the legal framework and strengthen enforcement to prevent and minimize the evasion of compulsory social insurance contributions.

Keywords: Compulsory social insurance, regulatory control, sham contracts, social insurance evasion, Social Insurance Law 2024.