Employees Who Do Not Participate in Trade Unions but Pay Social Insurance: Are They Required to Pay Trade Union Fees?
Do Employees Who Do Not Join a Trade Union but Contribute to Social Insurance Have to Pay Trade Union Fees?
Pursuant to Article 5 of Decree 191/2013/ND-CP which regulates the rate and basis for paying trade union fees as follows:
Rate and Basis for Paying Trade Union Fees
The rate of payment is 2% of the wage fund that serves as the basis for social insurance contributions for employees. This wage fund is the total amount of wages of employees who are subject to social insurance contributions as prescribed by social insurance law.
For units within the armed forces specified in Clause 1, Article 4 of this Decree, the wage fund is the total amount of wages of officials, workers, public employees in national defense, and workers on payrolls in factories, enterprises, and grassroots units within the People's Army; officials, workers, public employees, and on-payroll workers in enterprises, agencies, scientific-technical units, service units, and the People's Public Security forces.
Currently, the rate for paying trade union fees is 2% of the wage fund used as the basis for social insurance contributions. Thus, the basis for trade union fee contribution is the salary used for social insurance contributions, regardless of whether the individual is a trade union member.
Do employees who do not join a trade union but contribute to social insurance have to pay trade union fees? (Image from the internet)
Who Are Required to Pay Trade Union Fees?
Pursuant to Article 4 of Decree 191/2013/ND-CP which regulates the subjects required to pay trade union fees as follows:
Subjects Required to Pay Trade Union Fees
Subjects required to pay trade union fees as stipulated in Clause 2, Article 26 of the Trade Union Law are agencies, organizations, and enterprises, regardless of whether these agencies, organizations, and enterprises have established grassroots trade unions or not, including:
1. State agencies (including People's Committees at commune, ward, commune-level town levels), units under the People's Armed Forces.
2. Political organizations, socio-political organizations, socio-political-professional organizations, social organizations, social-professional organizations.
3. Public and non-public service providers.
4. Enterprises of all economic sectors established and operating according to the Enterprise Law, Investment Law.
5. Cooperatives and unions of cooperatives established and operating according to the Law on Cooperatives.
6. Foreign agencies, organizations, and international organizations operating within the territory of Vietnam related to the trade union organization and activities, foreign executive offices in business cooperation contracts in Vietnam employing Vietnamese employees.
7. Other organizations employing labor as per labor law.
The subjects required to pay trade union fees include:
- State agencies;- Units under the People's Armed Forces;- Political organizations, socio-political organizations, socio-political-professional organizations, social organizations, social-professional organizations;- Public service providers;- Enterprises;- Cooperatives and unions of cooperatives;- Foreign agencies, organizations, and international organizations operating within the territory of Vietnam related to the trade union organization and activities, foreign executive offices in business cooperation contracts in Vietnam employing Vietnamese employees;- Other organizations.
How Are Trade Union Fees Paid?
Pursuant to Article 6 of Decree 191/2013/ND-CP which regulates the method of paying trade union fees as follows:
Method of Paying Trade Union Fees
1. Agencies and units guaranteed by the state budget in whole or in part for regular operational expenses shall pay trade union fees once a month concurrently with the mandatory social insurance contributions for employees.
The State Treasury where the agency or unit has its account shall base on the trade union fee withdrawal paper, perform expenditure control and transfer the money into the trade union's deposit account at the bank.
2. Organizations and enterprises shall pay trade union fees once a month concurrently with the mandatory social insurance contributions for employees.
3. Agricultural, forestry, fishery, salt enterprises paying wages according to production cycles shall pay trade union fees on a monthly or quarterly basis concurrently with the mandatory social insurance contributions for employees based on registration with the trade union.
Organizations, enterprises, agencies, and units will pay trade union fees by deducting it from employees' wages, and concurrently with the time of social insurance contributions.
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