Do Union Fees Depend on Social Insurance Contribution Salary?
Regarding Union Fees:
According to Article 23 of the Regulation issued with Decision 1908/QD-TLD of 2016, the following requirements are stipulated:
Subjects, rates, and salary basis for union fee contributions:
- Union members at grassroots unions implementing wage policies regulated by the State: the monthly union fee is 1% of the salary used as the basis for social insurance contributions.
- Union members at grassroots unions of state-owned enterprises: the monthly union fee is 1% of the actual salary, with a maximum contribution of 10% of the statutory pay rate.
- Union members at grassroots unions of non-state enterprises: the monthly union fee is 1% of the salary used as the basis for social insurance contributions, with a maximum contribution of 10% of the statutory pay rate.
Thus, the minimum monthly union fee contribution is 1% and the maximum is 10% of the statutory pay rate. The current statutory salary rate is VND 1.49 million per month; therefore, the minimum union fee contribution is VND 14,900 per month and the maximum is VND 149,000.
Thus, your company needs to re-evaluate to ensure appropriate fee collection, as the current flat rate collection method is incorrect.
Regarding Union Funding: According to Article 5 of Decree 191/2013/ND-CP, the union funding rate and basis are as follows:
The contribution rate is 2% of the salary fund used as the basis for social insurance contributions for employees. This salary fund is the total salary level of employees who are subject to social insurance contributions according to the legal provisions on social insurance.
Respectfully!
