Do employers have to pay union fees for foreign employees in Vietnam?

Do employers have to pay union fees for foreign employees in Vietnam?

In Clause 2, Article 2, Decision 174/QD-TLD 2020 on duties of union members, accordingly:

a. Duly discharge obligations of a citizen, live and work in compliance with the country’s Constitution and laws, contribute to the building and defence of the Fatherland of Vietnam.

b. Observe and implement the Regulations of Trade Union of Vietnam and resolutions of trade unions at all levels; participate in trade union events and activities, and pay required membership dues.

c. Constantly study and improve cultural and political qualifications, professional skills; cultivate quality of the working class.

d. Be in solidarity with and help colleagues and co-workers in all employment and life aspects; protect the lawful and legitimate rights and interests of employees and trade unions; incessantly improve productivity, efficiency and performance; get involved in building strong enterprises and other entities.

dd. Raise awareness amongst workers and employees so that they will be willing to become TUVN’s members and get involved in building a strong trade union.

In addition, Clause 3.2 Article 3 of Instruction 03/HD-TLD 2020 stipulates:

3.2. Subjects not admitted to the Vietnam Trade Union organization stipulate the subjects and conditions for joining the Vietnam Trade Union, specifically as follows:

a. Foreigners working in Vietnam;

b. Employees doing management work in non-state-owned enterprises, including: sole proprietorship owners, partners, chairman of the board of members, member of the board of members, company president, chairman of the board of directors, board members, director or general director and individuals holding other management positions have the authority to sign transactions on behalf of the company in accordance with the provisions of the charter;

c. Principal, director; Vice principals and deputy principals are authorized to manage units or sign labor contracts in public service units outside the state sector.

d. Members in agricultural cooperatives;

dd. People who are serving prison sentences according to court decisions;

Thus, only members of the Vietnam Trade Union are responsible for paying membership dues. Meanwhile, foreign employees are not eligible to be admitted to the trade union, so they do not have to pay membership dues.

 Do employers have to pay union fees for foreign employees in Vietnam? (Image from the Internet)

How much is union fee for foreign employees in Vietnam?

In Article 5 of Decree 191/2013/ND-CP on the remittance level and basis of remitting trade-union fee:

The remittance level shall be 2% of salary fund which are used as the basis for social insurance payment for employees. This salary fund shall be total salaries of employees under objects payable social insurance in accordance with law on social insurance.

Particularly for units of armed forces specified at Clause 1 Article 4 of this Decree, the salary fund means total salaries of national defense cadres, workers and public employees, employees working and enjoying salary in plants, enterprises, grassroots units of People's army; cadres, workers and public employees, employees working and enjoying salary in the science-technical, non-business and serving enterprises, agencies, units of People’s Public Security.

Thus, the union fee payment rate for foreign employees is equal to 2% of the salary fund as a basis for paying social insurance for employees in Vietnam.

Best regards!