From July 1, 2025, in which cases is there an exemption, reduction, or temporary suspension of contributions to the trade union's funds in Vietnam?
From July 1, 2025, in which cases is there an exemption, reduction, or temporary suspension of contributions to the trade union's funds in Vietnam?
Pursuant to Article 30 of the Labor Union Law 2024, the cases granted exemption, reduction, or deferment of trade union dues are stipulated as follows:
Article 30. Exemption, reduction, and deferment of trade union dues
- Enterprises, cooperatives, and cooperative alliances undergoing dissolution or bankruptcy complying with legal regulations may be considered for exemption of unpaid union dues.
- Enterprises, cooperatives, and cooperative alliances facing difficulties due to economic reasons or force majeure may be considered for a reduction in union dues.
- In cases where enterprises, cooperatives, and cooperative alliances encounter difficulties necessitating a temporary halt in production or business, leading to incapability to pay union dues, consideration can be given to a deferment of union dues for a period not exceeding 12 months.
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According to the above provisions, the cases for exemption, reduction, and deferment of trade union dues include:
- Enterprises, cooperatives, and cooperative alliances undergoing dissolution or bankruptcy complying with legal regulations may be considered for exemption of unpaid union dues.
- Enterprises, cooperatives, and cooperative alliances facing difficulties due to economic reasons or force majeure may be considered for a reduction in union dues.
- In cases where enterprises, cooperatives, and cooperative alliances encounter difficulties necessitating a temporary halt in production or business, leading to incapability to pay union dues, consideration can be given to a deferment of union dues for a period not exceeding 12 months.
From July 1, 2025, in which cases is there an exemption, reduction, or temporary suspension of contributions to the trade union's funds in Vietnam? (Image from the Internet)
What is the trade union due rate for an agency in Vietnam?
Pursuant to Article 29 of the Labor Union Law 2024, particularly the financial aspect of labor unions, the union due rate is:
Article 29. Union finances
- The sources of union finances include:
a) Union fees paid by union members according to the Charter of the Vietnam General Confederation of Labor;
b) Union dues paid by agencies, organizations, units, enterprises, cooperatives, cooperative alliances amounting to 2% of the wage fund serving as the basis for mandatory social insurance contributions for employees;
c) Allocations by the state budget for support;
d) Other revenues from cultural, sports activities, and economic activities of the Labor Union; from projects assigned by the State; from lawful aid, sponsorship from domestic and foreign organizations and individuals in accordance with law.
- The Government of Vietnam prescribes the method, deadline, and sources for union dues; cases of unpaid or delayed union dues; the contents of state budget allocations for support prescribed in point c, clause 1 of this Article.
According to the above provisions, the trade union due rate paid by an agency is 2% of the wage fund serving as the basis for mandatory social insurance contributions for employees.
For what purposes is the trade union's financial resources in Vietnam utilized?
Pursuant to clause 2, Article 31 of the Labor Union Law 2024, trade union funds are utilized for the following tasks:
- Conducting activities representing and protecting the legal and legitimate rights and interests of union members and employees; participating in building progressive, harmonious, and stable labor relations
- Propagating, disseminating, and educating the guidelines and policies of the Communist Party and State laws; enhancing the knowledge, expertise, professional skills, and working style for union members and employees
- Visiting, assisting union members and employees in cases of illness, maternity leave, hardship, adversity; organizing other caring activities for union members and employees
- Developing union membership, establishing grassroots unions, and building a strong Labor Union
- Training, fostering union cadres; training and fostering outstanding employees as a source of cadre for the Communist Party, State, and Labor Union
- Organizing emulation movements initiated or coordinated by the Labor Union
- Organizing cultural, sports, sightseeing, and tourism activities for union members and employees
- Rewarding and encouraging employees and the children of employees with achievements in study and work
- Investing in the construction of social housing for union members and employees to rent; cultural work, sports projects, related technical infrastructure to serve union members and employees, in accordance with the law
- Ensuring gender equality related activities fitting the functions and tasks of the Labor Union
- Conducting scientific research, technology, innovation, and digital transformation within Labor Union's scope
- Administrative management expenditure to support the activities of the Labor Union at various levels, and international cooperation activities
- Paying salaries, allowances, and mandatory contributions by salary for full-time union cadres, activity allowances for part-time union cadres
- Assisting part-time union cadres during work interruptions, unable to return to their previous jobs due to employer-initiated termination of labor contracts, employment contracts, forced resignation, or illegal dismissal
- Supporting grassroots unions facing exemption, reduction, or deferment of union dues to care for union members and employees
- Social activities initiated or coordinated by the Labor Union
- Other expenditure tasks according to the law regulations
