Can workers' union dues increase after the regional minimum wage in Vietnam increases from July 1, 2022?
What is the level of trade union dues paid by trade union members?
According to Article 23 of the Regulation promulgated together with Decision 1908/QD-TLD in 2016 on the level of trade union dues as follows:
“Article 23. Subjects, payment rates, and salaries as the basis for paying union fees
1. Union members at grassroots trade unions of state agencies; Political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations; units of the people's armed forces; Non-business units receive salary according to the salary table and salary level regulated by the State: the monthly union fee payment level is equal to 1% of the salary as the basis for paying social insurance premiums according to the provisions of the law on Social Insurance.
The salary used as the basis for paying social insurance premiums is the salary for the rank and position, the salary according to the labor contract, the working contract and the position allowances, the extra-seniority allowance, the seniority allowance. . When the salary used as the basis for payment of social insurance changes, the salary used as the basis for payment of union dues changes in accordance with the provisions of the law on social insurance.
2. Union members in grassroots trade unions of state-owned enterprises (including trade unions of state-owned joint-stock companies holding controlling shares): the monthly union fee payment rate is equal to 1% of actual salary (paid salary). deduction of payment of social insurance, health insurance, unemployment insurance, personal income tax of members), but the maximum monthly union fee payment is only 10% of the base salary as prescribed by law. Government.
3. Union members in non-state enterprise grassroots trade unions (including trade unions of joint-stock companies in which the state does not hold controlling shares); Non-public non-business units receive salaries not according to the salary table or salary grade prescribed by the State; Union of Cooperatives; Foreign organizations and international organizations operating in the Vietnamese territory; Executive office of the foreign side in the business cooperation contract in Vietnam; Trade union members working abroad: the monthly union fee payment rate is equal to 1% of the salary as the basis for paying social insurance premiums according to the law on Social Insurance, but the maximum monthly union fee payment rate only 10% of the base salary as prescribed by the State
4. The grassroots trade unions specified in Clauses 2 and 3 of this Article are entitled to collect trade union dues from their members every month equal to 1% of their actual salary (wage has been deducted from social insurance and health insurance contributions. , unemployment insurance, personal income tax of union members) or stipulate a higher rate of 1% of salary as the basis for payment of social insurance if it is extended by the Executive Committee of the grassroots trade union (from the head of the labor union). union or higher) agreed by Resolution, in writing and specified in the Regulation on internal expenditure of the grassroots trade union. Trade union fees, the additional revenue collected compared to the provisions in Clauses 2 and 3 of this Article shall be left 100% for the grassroots trade union to supplement operating expenses in accordance with regulations; When reporting on finalization, the grassroots trade union must separate the increased trade union fee according to the prescribed form to have a basis for calculating the payable amount to the superior.
5. It is difficult for members of trade unions and trade unions to determine the salary as a basis for paying union dues; Trade union members who are not subject to social insurance premiums: pay union dues at a fixed rate, but the lowest payment is 1% of the base salary according to the State's regulations.
6. Trade union members who enjoy social insurance allowance for 01 month or more, during the benefit period, do not have to pay union fees; Trade union members have no job, no income, leave their own jobs for 01 month or more without salary, during that time they do not have to pay union fees
Can workers' union dues increase after the regional minimum wage in Vietnam increases from July 1, 2022?
What is the level of trade union dues paid by agencies, organizations and enterprises?
According to Article 4 of Decree 191/2013/ND-CP, the beneficiaries of this trade union fee are as follows:
"Article 4. Entities paying trade union fees
Subjects of paying trade union dues as prescribed in Clause 2, Article 26 of the Law on Trade Unions are agencies, organizations and enterprises, regardless of whether such agencies, organizations or enterprises have or have not had a basic trade union organization. department, including:
1. State agencies (including People's Committees of communes, wards and townships), units of the people's armed forces.
2. Political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations.
3. Public and non-public non-business units.
4. Enterprises of all economic sectors established and operating under the Law on Enterprises and the Law on Investment.
5. Cooperatives and unions of cooperatives established and operated under the Law on Cooperatives.
6. Foreign agencies, organizations and international organizations operating in the Vietnamese territory related to the organization and operation of trade unions, executive offices of foreign parties in business cooperation contracts in Vietnam Nam employs Vietnamese workers.
7. Other organizations employing employees according to the provisions of the labor law."
According to Article 5 of Decree 191/2013/ND-CP, the level of payment of trade union fees is as follows:
"Article 5. Payment rates and bases for paying trade union dues
The payment level is equal to 2% of the salary fund as the basis for paying social insurance premiums for employees. This salary fund is the total salary of employees who are required to pay social insurance premiums in accordance with the law on social insurance.
Particularly for units of the armed forces specified in Clause 1, Article 4 of this Decree, the salary fund is the total salary of defense officers, employees, and wage earners in military units. machines, enterprises, and grassroots units in the People's Army; cadres, workers, public employees, salaried workers in enterprises, agencies, scientific-technical units, non-businesses and serving in the People's Public Security."
Violations of regulations on union fees are penalized like?
According to Article 38 of Decree 12/2022/ND-CP on violations of regulations on payment of trade union fees
- A fine ranging from 12% to less than 15% of the total amount of trade union dues payable at the time of making a record of administrative violations but not exceeding VND 75,000,000 for an employer with one of the following: the following behaviors:
+ Late payment of trade union fees;
+ Paying trade union fees not at the prescribed level;
+ Paying trade union dues is not enough for the number of people who must pay.
- A fine ranging from 18% to 20% of the total amount of trade union dues payable at the time of making a record of administrative violations but not exceeding VND 75,000,000 for employers who do not pay dues. union for all employees who are subject to payment.
- Remedial measures: Within 30 days from the date of issuance of the sanctioning decision, the employer must pay to the trade union the amount of the trade union fee paid late, underpaid or not yet paid, and interest on unpaid or late payment of trade union fees according to the highest interest rate on demand deposits of state-owned commercial banks announced at the time of sanctioning for violations specified at Point a. Clauses 1 and 2 of this Article.
Note: The fine level specified for these violations is the fine level for individuals. The fine level for organizations is equal to 02 times the fine level for individuals.
Based on the above provisions, the level of trade union fee payment is determined based on the salary as the basis for payment of social insurance contributions of employees, which is determined from the employee's salary, in addition, the monthly salary paid for Compulsory social insurance is not lower than the regional minimum wage in Vietnam at the time of payment.
From July 1, 2022, the regional minimum wage in Vietnam has increased compared to the previous regulations under Decree 38/2022/ND-CP, so employees have the level of contribution to union dues based on the salary they pay. Social insurance as listed above may also have to increase if the salary according to the regional minimum wage in Vietnam is increased after July 1, 2022.
Decree 38/2022/ND-CP takes effect from July 1, 2022.
Lê Nguyễn Cẩm Nhung
