Title: Percentage of Local Trade Union Funding Used in 2023 Compared to 2022: Is There an Increase? Who Are the Subjects Required to Contribute to Trade Union Funding in 2023?
Does the proportion of trade union fees used by grassroots trade unions in 2023 increase compared to 2022?
Article 1 of Decision 8108/QD-TLD 2023 by the Vietnam General Confederation of Labor stipulates:
The Vietnam General Confederation of Labor stipulates the use of collected trade union fees by different levels of trade unions as follows:
- Grassroots trade unions are allowed to use 70% of the collected trade union fees.
- Higher-level trade unions are allowed to use 30% of the collected trade union fees.
* This decision is effective from the financial year 2023 and modifies the usage of collected trade union fees stipulated in Clause 1, Article 5 of Decision 4290/QD-TLD 2022.
Clause 1, Article 5 of Decision 4290/QD-TLD 2022 stipulates the use of collected trade union fees as follows:
The grassroots trade union's financial resources are used and allocated for various expense items.
1. Grassroots trade unions are allowed to use 75% of the collected trade union fees, 60% of the collected trade union membership dues as regulated by the Presidium of the Vietnam General Confederation of Labor, and 100% of other collected revenues of the unit as prescribed by law and the General Confederation.
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Thus, the rate of collected trade union fees that grassroots trade unions are allowed to use in 2023 has increased by 10 percentage points compared to the previous regulation.
However, the regulation in Decision 8108/QD-TLD 2023 only allows for the increase of the usage rate of collected trade union fees and not for trade union funds.
Therefore, currently, grassroots trade unions are still only allowed to use 75% of the collected trade union funds.
Does the proportion of trade union fees used by grassroots trade unions in 2023 increase compared to 2022? Who are the subjects required to pay trade union fees in 2023?
Who are the subjects required to pay trade union fees in 2023?
Article 4 of Decree 191/2013/ND-CP stipulates that the subjects required to pay trade union fees include:
(1) Government agencies (including commune-level People's Committees), units under the People's Armed Forces.
(2) Political organizations, political-social organizations, political-social-professional organizations, social organizations, social-professional organizations.
(3) Public and non-public service units.
(4) Enterprises of all economic sectors established and operating under the Law on Enterprises and the Law on Investment.
(5) Cooperatives, cooperative unions established and operating under the Law on Cooperatives.
(6) Foreign agencies and organizations, international organizations operating within the territory of Vietnam that are related to the organization and activities of trade unions, foreign executive offices in business cooperation contracts in Vietnam employing Vietnamese labor.
(7) Other organizations employing labor as stipulated by labor law.
What is the trade union fee rate for enterprises in 2023?
The trade union fee rate for enterprises is stipulated in Article 5 of Decree 191/2013/ND-CP as follows:
Rate and basis for paying trade union fees
The fee rate is 2% of the salary fund used as a basis for paying social insurance for employees. This salary fund is the total salary level of employees who are subject to social insurance payment as stipulated by social insurance law.
For units under the People's Armed Forces specified in Clause 1, Article 4 of this Decree, the salary fund is the total salary level of officers, public defense employees, and laborers working in defense plants, enterprises, and basic units under the People's Army; officers, public defense employees, and laborers working in enterprises, agencies, scientific-technical units, and service units under the People's Police.
The trade union fee rate for enterprises is 2% of the salary fund used as a basis for paying social insurance for employees. This salary fund is the total salary level of employees who are subject to social insurance payment as stipulated by law.
What are the methods of paying trade union fees for enterprises?
Article 6 of Decree 191/2013/ND-CP stipulates the methods of paying trade union fees as follows:
Methods of paying trade union fees
1. Government agencies and units that have part or all of their regular operational budget guaranteed by the state pay trade union fees monthly at the same time as the mandatory social insurance payment for employees.
The State Treasury where agencies and units hold transaction accounts shall, based on the trade union fee withdrawal document, execute expense control and transfer money to the trade union organization's deposit account at the bank.
2. Organizations and enterprises pay trade union fees monthly at the same time as the mandatory social insurance payment for employees.
3. Agricultural, forestry, fishery, and salt enterprises that pay wages according to production cycles pay trade union fees monthly or quarterly at the same time as the mandatory social insurance payment for employees based on registration with the trade union organization.
According to these regulations, enterprises shall pay trade union fees monthly at the same time as the mandatory social insurance payment for employees.
For agricultural, forestry, fishery, and salt enterprises that pay wages according to production cycles, the trade union fees are paid monthly or quarterly at the same time as the mandatory social insurance payment for employees based on registration with the trade union organization.
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