Principles for building and delivering trade union financial estimates for 2024 in Vietnam

Principles for building and delivering trade union financial estimates for 2024 in Vietnam (Internet image) 

Principles for building and delivering trade union financial estimates for 2024 in Vietnam

The Vietnam General Confederation of Labor issued Decision 8086/QD-TLD in 2023 stipulating principles for building and delivering union financial estimates for 2024.

The general principles for building and delivering trade union financial estimates for 2024 are as follows:

- 2% union dues are calculated on the total salary of employees who are required to pay social insurance (social insurance) according to the provisions of the law on social insurance. Therefore, the basis for determining the Wage Fund to pay 2% trade union fees in 2024 at units is calculated on the average salary paid for social insurance in the first 6 months of 2023 at the unit multiplied by the number of employees subject to having to pay social insurance according to the provisions of the law on social insurance.

- Union dues are collected based on the number of union members according to salary and salary allowances in each region and according to Decision 1908/QD-TLD dated December 19, 2016 of the Vietnam General Confederation of Labor.

- Assigned payroll quota: is the payroll quota for trade union officials assigned by the General Confederation or the Provincial or City Party Committee. Contract workers are allowed to sign contracts by the General Confederation or Provincial or City Party Committee (enclosed with a document and decision of the competent authority assigning staff and allowing labor recruitment). and contract workers according to Decree 111/2022/ND-CP dated December 30, 2022, of the Government on contracts for some types of work in administrative agencies and public service units.

- Distribution of spending sources at all levels, proportion of spending in categories, and spending levels of content are guaranteed according to current regulations of the State and the General Confederation.

- Confederation of Labor of Provinces and Cities; Central sector trade union and equivalent; The Corporation's Trade Union under the General Confederation seriously carries out statistics on the number of employees and union members in affiliated units that have established trade union organizations and where trade union organizations have not been established, forecast the fluctuation in the number of employees and union members in 2024, coordinate with the local social insurance agency to calculate the average salary paid for social insurance in the first 6 months of 2023, and from there, determine the amount of 2% union fee revenue to ensure it is realistic and feasible to implement. Based on the management data of the Central Social Insurance Agency and localities, the General Confederation will check and compare the estimates of the units for consideration and approval.

Principles for distributing financial revenues between grassroots trade unions and superior trade unions in Vietnam

1. Grassroots trade union

In 2024, the grassroots trade union will be able to use 70% of the total revenue from union fees and 75% of the total revenue from trade union fees.

The union dues collected increased compared to the provisions in Decision 1908/QD-TLD, and other revenue sources are left 100% for the grassroots trade union to use.

2. Upper-level union at the grassroots level

The revenue from CPC and CPC is used after distribution to the CPC; the remaining 30% of the total revenue from trade union fees and 25% of the total revenue from trade union fees will be distributed according to the provisions of Article 22 of Decision 1908/QD-TLD dated December 19, 2016 of the Vietnam General Confederation of Labor: Distribution of financial revenues to trade unions at all levels on a grassroots basis. The General Confederation temporarily stipulates a distribution ratio of 2% of the production and business areas collected through the General Confederation's account to all trade union levels. At the end of the financial year, the clearing between the Confederation of Labor of provinces and cities, the Central Sector Trade Union, and the equivalent of the direct superior Trade Union at the grassroots level is done by the Standing Committee of the Confederation of Labor of provinces and cities; Central industry union decides.

The General Confederation assigns the amount payable to the General Confederation, the number of support grants or assigns self-balancing to the Confederation of Labor of provinces and cities, Central Sector Trade Unions and equivalent, and affiliated Corporation Trade Unions in the 2024 budget according to Decision 1908/QD-TLD dated December 19, 2016, promulgating regulations on financial management, trade union assets, collection and distribution of revenue sources, bonuses, fines, and payment of trade union finances.

At whatever level other revenue sources arise, that level is used.

More details can be found in Decision 8086/QD-TLD in 2023.

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