Guidance for Enterprises on Paying Trade Union Fees through the Account of the Vietnam General Confederation of Labour
Guidance for Enterprises on Paying Trade Union Fees via the Vietnam Trade Union Account?
On September 7, 2023, the Vietnam General Confederation of Labor issued Official Dispatch 7418/TLD-TC in 2023 to guide enterprises on paying trade union fees through the Vietnam Trade Union account.
In Official Dispatch 7418/TLD-TC in 2023, the Vietnam General Confederation of Labor pointed out several mistakes made by many enterprises when making trade union fee payments via the Vietnam Trade Union account, specifically including errors such as:
Enterprises paying trade union fees, when creating the payment order, having incorrect recipient account names.
- The payment content being unclear or incorrect syntax (missing or wrong taxpayer identification number, missing or incorrect name of the paying unit).
- Enterprises paying trade union fees when grassroots unions and higher-level trade unions have not registered the union information with the bank,...
Therefore, the trade union fees paid by enterprises to the Vietnam Trade Union account were not automatically allocated to the respective union levels as prescribed.
The 2% trade union fee paid by enterprises remains 100% in the Vietnam Trade Union account (not allocated to the union levels) or remains 75% in the Vietnam Trade Union account (allocated to three upper levels but not to the grassroots unions).
Consequently, the Vietnam General Confederation of Labor issued Official Dispatch 7418/TLD-TC in 2023 to guide enterprises on paying trade union fees through the Vietnam Trade Union account as follows:
Requesting the provincial, city-level Labor Confederations; central and equivalent sector-level trade unions, and company-level trade unions under the Confederation to continue coordinating with branches of Vietinbank, Agribank, BIDV to guide subordinate units to implement as follows:
*Guiding enterprises on declaring trade union fee payment information according to Guidance 1305/HD-TLD in 2017 of the Vietnam General Confederation of Labor on the collection of trade union fees in the business and production sector through the Vietnam Trade Union account opened at Vietnam Joint Stock Commercial Bank for Industry and Trade as follows:
Vietnam General Confederation of Labor Level
...
- Collecting fees via the following account:
Account Name: Vietnam General Confederation of Labor
Account Number: 117001366668
at Vietnam Joint Stock Commercial Bank for Industry and Trade.
- Allocating funds to grassroots unions when enterprises, units pay trade union fees (according to policies within 24h from the time the enterprises, units pay trade union fees).
- Monthly allocating the upper-level union usage funds to the provincial, city-level Labor Confederations; central and equivalent sector-level trade unions; company-level trade unions under the Confederation and the collected trade union fees from enterprises, units without a trade union organization.
- Coordinating with Vietnam Joint Stock Commercial Bank for Industry and Trade to instruct branches nationwide to implement the collection of trade union fees.
In Guidance 09/HD-TLD in 2020, the guidance for collecting trade union fees is as follows:
(1) Trade Union Fee Collection Account Information
Account Name: Vietnam Trade Union
Account Number: 1400 288 668 989
Opened at: Vietnam Bank for Agriculture and Rural Development.
(2) Payment Syntax
Upon receiving a trade union fee collection notice from the upper-level trade union authorized to collect, enterprises, units pay the trade union fee using the following syntax:
Tax ID
Example: Tax ID 1111222233 ABC Company paying trade union fee for Q1 of 2020.
Note:
+ The taxpayer identification number is a continuous sequence of numbers without special characters between (e.g., no hyphen “-“, space “ ”, dot “.” ...)
+ For units without dependent units, the taxpayer identification number is a sequence of 10 consecutive digits. For dependent units, the taxpayer identification number is a sequence of 13 consecutive digits.
Guidance 85/HD-TLD in 2023 by the Vietnam General Confederation of Labor on collecting trade union fees in the business and production sector via the Vietnam Trade Union account opened at the Joint Stock Commercial Bank for Investment and Development of Vietnam.
Guidance on how enterprises pay trade union fees through the Vietnam Trade Union account?
Can grassroots trade unions use 70% of the collected union fees in 2023?
On October 16, 2023, the Vietnam General Confederation of Labor issued Decision 8108/QD-TLD in 2023 on the distribution of union fees for different union levels.
In Article 1 of Decision 8108/QD-TLD in 2023, the Vietnam General Confederation of Labor specifies the usage of collected union fees for different union levels as follows:
- Grassroots trade unions can use 70% of the collected union fees.
- Higher-level trade unions can use 30% of the collected union fees.
* This decision is effective from the financial year 2023 and amends the usage of collected union fees as stipulated in clause 1, Article 5 of Decision 4290/QD-TLD in 2022.
In clause 1, Article 5 of the regulations issued with Decision 4290/QD-TLD in 2022, the usage of collected union fees is specified as follows:
Financial resources of grassroots trade unions to be used and allocated for expenditure items
1. Grassroots trade unions can use 75% of collected trade union fees, 60% of collected union fees as stipulated by the Presidium of the Vietnam General Confederation of Labor, and 100% of other collected amounts in the unit as prescribed by law and the Confederation.
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Thus, Decision 8108/QD-TLD in 2023 increases the percentage of collected union fees that grassroots trade unions can use from 60% to 70%.
Who are the subjects required to pay trade union fees in 2023?
According to the provisions of Article 4 of Decree 191/2013/ND-CP, the subjects required to pay trade union fees are stipulated as follows:
The subjects required to pay trade union fees under clause 2, Article 26 of the Trade Union Law 2012 include agencies, organizations, and enterprises regardless of whether they have established grassroots trade unions, including:
- State agencies (including the People's Committees of communes, wards, commune-level towns), units under the people's armed forces.
- Political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations.
- Public and non-public career units.
- Enterprises in all economic sectors established and operating under the Enterprise Law, Investment Law.
- Cooperatives, cooperative unions established and operating under the Cooperative Law.
- Foreign agencies, organizations, and international organizations operating in Vietnam related to trade union organization and activities, foreign partner management offices in business cooperation contracts in Vietnam using Vietnamese labor.
- Other organizations that employ labor in accordance with the labor law.
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