What are the rate of payment of the trade union fee in Vietnam? What are methods for payment of the trade union fee in Vietnam?

What are the rate of payment of the trade union fee in Vietnam?

Pursuant to Article 23 of the Regulations on management of the trade union budget and the trade union’s assets, collection and distribution of revenues, rewards and penalties related to trade union revenues and expenditures issued together with the Decision 1908/QD-TLD in 2016, the rate of payment of the trade union fee in Vietnam is as follows:

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 = 1 % x Salary that is used as a basis for social insurance payment

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 = 1% x Real salary

In which:

- Real salary is the salary minus payment for social insurance, health insurance, unemployment insurance and personal income tax of trade unionists

- The monthly rate of payment is 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 = 1% x Salary that is used as the basis for social insurance payment

Note: the monthly rate of payment is not exceeding 10% of the statutory pay rate prescribed by the State’s regulations.

4. Internal trade unions prescribed in Clauses 2 and 3 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 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:

The lowest trade union fee according to fixed rate = 1% x Statutory pay rate

What are the rate of payment of the trade union fee in Vietnam? What are methods for payment of the trade union fee in Vietnam? - image from internet

What are methods for payment of the trade union fee in Vietnam?

Pursuant to Clause 1 Article 24 of the Regulations on management of the trade union budget and the trade union’s assets, collection and distribution of revenues, rewards and penalties related to trade union revenues and expenditures issued together with the Decision 1908/QD-TLD in 2016:

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.

2. Management of the trade union fee”

Internal trade unions and stand-alone trade unions that are assigned to collect the trade union fee from the trade unionists shall keep the records, record and reflect fully and promptly the monthly payment of trade union fee according to the list of their trade unionists; preserve and store records of collection of the trade union fee in accordance with law on accounting and consolidate the financial statements and submit them to their superior trade unions. Distribution, use and management of trade union fee shall comply with VGCL’s regulations.

As regulated above, trade unionists may pay the trade union fee by 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.

- The trade union fee is collected via modern technologies (such as personal accounts, ATM, etc) on the basis of agreements between trade unionists and internal trade unions and written consent of supervisory trade unions.

Do trade unionists who are unemployed have to pay trade union fee in Vietnam?

Pursuant to Clause 6 Article 23 of the Regulations on management of the trade union budget and the trade union’s assets, collection and distribution of revenues, rewards and penalties related to trade union revenues and expenditures issued together with the Decision 1908/QD-TLD in 2016, the rate of payment of the trade union fee in Vietnam is as follows:

Subjects, rate of payment and salary used as the basis for payment of the trade union fee

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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, trade unionists who are unemployed are not required to pay the trade union fee during these period.

Best regards!