What are the cases exempt from trade union fee in Vietnam? What are the revenues of trade union fee in Vietnam?
What are the cases exempt from trade union fee in Vietnam?
Pursuant to Clause 6, Article 23 of Decision No. 1908/QD-TLD in 2016 stipulating as follows:
Subjects, rate of payment and salary used as the basic for payment of the trade union fee
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6. Trade unionists receive the social insurance benefits within one month or more are not required to pay the trade union fee during the period of receiving benefits. Trade unionists are unemployed, do not have income or on personal leave within one month or more without salary are not required to pay the trade union fee during these period.
According to this regulation, the subjects who will be exempt from trade union fee are:
- Trade unionists receive the social insurance benefits within one month or more are not required to pay the trade union fee during the period of receiving benefits.
- Trade unionists are unemployed.
- Trade unionists do not have income.
- Trade unionists take on personal leave within one month or more without salary.
What are the cases exempt from trade union fee in Vietnam? What are the revenues of trade union fee in Vietnam?
What are the revenues of trade union fee in Vietnam?
Pursuant to Article 26 of the 2012 Law on Trade Union in Vietnam stipulating as follows:
Finance of Trade Union in Vietnam
Finance of Trade Union includes the following revenues:
1. Trade Union fee is paid by trade union members as prescribed in the Charter of Vietnamese Trade Union;
2. Trade Union funds are paid by agencies, organizations and enterprises in 2% salary funds based to pay social insurance for laborers;
3. State budget allowances for assistance;
4. Other revenues from activities of culture, sport, ecomomy of Trade Union; from projects, plans assigned by the State; from aid, funding of domestic and foreign organizations, individuals.
Finance of Trade Union includes the following revenues:
- Trade Union fee is paid by trade union members as prescribed in the Charter of Vietnamese Trade Union;
- Trade Union funds are paid by agencies, organizations and enterprises in 2% salary funds based to pay social insurance for laborers;
- State budget allowances for assistance;
- Other revenues from activities of culture, sport, ecomomy of Trade Union; from projects, plans assigned by the State; from aid, funding of domestic and foreign organizations, individuals.
What is the trade union fee based on?
Pursuant to Clause 1, Article 23 of Decision No. 1908/QD-TLD in 2016 stipulating the bases for trade union fees as follows:
- The monthly rate of payment of trade union fee shall be 1 % of salary that is used as a basis for social insurance payment according to regulations of Law on Social Insurance with regard to:
+ The trade unionists of regulatory agencies;
+ Political organizations, socio-political organizations, socio-political and professional organizations, social organizations, socio-professional organizations;
+ Units of the people’s armed forces and trade unionists of public service providers that are paid according to payroll and salary scale prescribed by the State's regulations.
- The monthly rate of payment shall be 1% of real salary (the salary minus payment for social insurance, health insurance, unemployment insurance and personal income tax of trade unionists) but not exceed 10% of statutory pay rate prescribed by the State’s regulations with regard to the trade unionists of state-owned enterprises (including the trade unionists of joint-stock company whose control stocks are held by the State)
- The monthly rate of payment shall be 1% of the salary that is used as the basic for social insurance payment in accordance with regulations of law on social insurance but not exceed 10% of the statutory pay rate prescribed by the State’s regulations with regard to:
+ The trade unionists of non-state enterprises (including the trade unionists of joint-stock companies whose control stocks are not held by the State);
+ The trade unionists of non-public units whose salaries do not follow the payroll and salary scale prescribed by the State;
+ Trade unionists of co-operatives
+ Foreign and international organizations operating in the territory of Vietnam;
+ Executive offices of foreign partners of business cooperation contract in Vietnam
+ The trade unionist working abroad.
- The trade unionists of stand-alone trade unions and enterprises whose salary used as the basic for the payment of trade union fee cannot be identified and trade unionists that do not have the duty to pay social insurance shall pay the trade union fee according to fixed rate but not lower than 1% of the statutory pay rate prescribed by the State's regulations.
What are the methods for payment of trade union fee in Vietnam?
Pursuant to Article 24 of Decision No. 1908/QD-TLD in 2016 stipulating as follows:
Methods for payment and management of the trade union fee
1. Methods for payment of the trade union fee
a) Trade unionists pay the trade union fee directly and monthly to the trade union group, trade union divisions, trade union affiliates, internal trade unions and stand-alone trade unions (according to assignment of internal trade unions and stand-alone trade unions).
b) The trade union fee is deducted from the month salary of trade unionists (cash or transfer) after the trade unionists agree. In this case, amount of collected trade union fee shall be confirmed by the internal accounting department and a list of trade unionists that have paid the trade union shall be made.
c) Trade unionists and internal trade unions are encouraged to use modern technologies (such as personal accounts, ATM, etc) for collection and payment of the trade union fee on the basis of agreements between trade unionists and internal trade unions and written consent of supervisory trade unions.
Thus, the trade union fee shall be paid by the following methods:
- Trade unionists pay the trade union fee directly and monthly to the trade union group, trade union divisions, trade union affiliates, internal trade unions and stand-alone trade unions (according to assignment of internal trade unions and stand-alone trade unions).
- The trade union fee is deducted from the month salary of trade unionists (cash or transfer) after the trade unionists agree. In this case, amount of collected trade union fee shall be confirmed by the internal accounting department and a list of trade unionists that have paid the trade union shall be made.
- Trade unionists and internal trade unions are encouraged to use modern technologies (such as personal accounts, ATM, etc) for collection and payment of the trade union fee on the basis of agreements between trade unionists and internal trade unions and written consent of supervisory trade unions.
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