Title: Who Are the Subjects Required to Contribute Union Fees? What is the Current Regulation on Union Fee Contribution Rates?
Who are the entities required to pay union dues?
Pursuant to the provisions of Article 4 of Decree 191/2013/ND-CP, the entities required to pay union dues are as follows:
- State agencies (including commune, ward, and commune-level town People's Committees), units under the people's armed forces.
- Political organizations, socio-political organizations, socio-political-professional organizations, social organizations, and socio-professional organizations.
- Public and non-public service units.
- Enterprises of all economic sectors established and operating under the Law on Enterprises and the Law on Investment.
- Cooperatives and unions of cooperatives established and operating under the Law on Cooperatives.
- Foreign agencies and organizations, international organizations operating on Vietnamese territory related to union organization and activities, and foreign parties' executive offices in business cooperation contracts in Vietnam employing Vietnamese workers.
- Other organizations employing labor according to labor law provisions.
Who are the entities required to pay union dues? What is the current union dues rate?
What is the current rate of union dues?
Pursuant to Article 5 of Decree 191/2013/ND-CP, it is stipulated as follows:
Rate and basis for paying union dues
The rate is 2% of the salary fund used as the basis for social insurance contributions for employees. This salary fund is the total salary amount of employees who are required to pay social insurance premiums under social insurance laws.
For units under the armed forces specified in Clause 1, Article 4 of this Decree, the salary fund is the total salary amount of defense public employees, workers, employees paid from the salary fund of factories, enterprises, and grassroots units in the People's Army; officers, workers, public employees, and employees paid from the salary fund in enterprises, agencies, scientific-technical units, career activities, and services in the People's Police.
Thus, according to the above provisions, the rate of union dues is 2% of the salary fund used as the basis for social insurance contributions for employees.
The salary fund is the total salary amount of employees who are required to pay social insurance premiums.
How are union dues paid?
Pursuant to the provisions of Article 6 of Decree 191/2013/ND-CP, union members pay union dues using the following methods:
- Agencies and units fully or partially funded by the state budget for regular activities pay union dues monthly at the same time as the mandatory social insurance contributions for employees.
The State Treasury where the agency or unit opens a transaction account, based on the union expense withdrawal paper, will control spending and transfer money to the union's deposit account at the bank.
- Organizations and enterprises pay union dues monthly at the same time as the mandatory social insurance contributions for employees.
- Agricultural, forestry, fisheries, and salt production organizations and enterprises paying salaries according to production cycles pay union dues monthly or quarterly at the same time as the mandatory social insurance contributions for employees, based on registration with the union organization.
How is the source of union dues regulated?
According to the provisions of Article 7 of Decree 191/2013/ND-CP as follows:
Source of union dues
1. For agencies and units fully funded by the state budget for regular activities, the state budget ensures the entire source of union dues and includes it in the annual regular expenditure estimates of the agency or unit, according to state budget management decentralization laws.
2. For agencies and units partially funded by the state budget for regular activities, the state budget ensures the source of union dues calculated based on the salary fund for social insurance contributions of budget-funded staff and includes it in the annual regular expenditure estimates of the agency or unit, according to state budget management decentralization laws. The remaining union dues, the unit itself ensures according to Clauses 3 and 4 of this Article.
3. For enterprises and units engaged in production, business, and services, the union dues are accounted into the production, business, and service expenses in the period.
4. For other agencies, organizations, and units, the union dues are used from the operating funds of the agency, organization, or unit according to law.
Thus, currently, the source of union dues is implemented as stated above.
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