Are employees in Vietnam required to pay trade union fees?
In my company, there is a trade union. Some employees are members while others are not. Is it mandatory for all employees to pay trade union fees? If it is mandatory, what is the amount of fees that must be paid according to the law in Vietnam?
Phuong Minh (minh***@gmail.com)
Are employees in Vietnam required to pay trade union fees? - image from internet
Pursuant to Article 26 of the Law on Trade Union in 2012 stipulating 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.
Pursuant to Article 23 of the Decision 1908/QD-TLD in 2016 stipulating subjects, rate of payment and salary used as the basis for payment of the trade union fee in Vietnam:
1. 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 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.
The salary that is used as the basis for social insurance payment is the salary paid according to quality and position, salary on the labor contract or working contract and position allowances and seniority allowances. If salaries used as the basis for social insurance payment changes, those used as the basis for the payment of trade union fee will also change according to regulations of law on social insurance.
2. 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 real salary (the salary minus payment for social insurance, health insurance, unemployment insurance and personal income tax of trade unionists) but not exceeding 10% of statutory pay rate prescribed by the State’s regulations.
3. 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 and the trade unionist working abroad: the monthly rate of payment shall be 1% of the salary that is used as the basis for social insurance payment in accordance with regulations of law on social insurance but not exceeding 10% of the statutory pay rate prescribed by the State’s regulations.
4. Internal trade unions prescribed in Clauses 2 and 3 of this Article may collect the trade union fee from trade unionists equal to 1% of their real salaries (the salary minus the payment for social insurance, health insurance, unemployment insurance and personal income tax of trade unionists) or over if this rate is consented by the Standing Committee of wide-open internal trade union (group leader of trade union or over) through a Resolution or writing and specified in Regulation on internal expenditures of internal trade unions. The collected trade union fee that exceeds the amount prescribed in Clauses 2 and 3 of this Article shall be returned fully to internal trade unions in order to supplement the operation expenditure in accordance with regulations. When submitting the financial statement, an internal trade union shall separate the exceeding amount according to prescribed form in order to identify the trade union fee that shall be paid to its supervisory trade union.
5. The trade unionists of stand-alone trade unions and enterprises whose salary used as the basis 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.
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.
As regulated above, employees who are trade union members are required to pay trade union fees. Employees who do not participate in the union, or are not union members, are not obligated to pay trade union fees.
Best regards!
