Salary fund for paying the trade-union fee in Vietnam in 2025

Salary fund for paying the trade-union fee in Vietnam in 2025 (Image from the internet)

Salary fund for paying the trade-union fee in Vietnam in 2025

The content is guided by Decision 1754/QD-TLD of 2024 regarding the Regulation on principles for construction and allocation of the trade union financial estimates for 2025 issued by the Vietnam General Confederation of Labour.

In the general principles section for constructing and allocating the trade union financial estimates for 2025, there is a mention of the Salary fund for paying the trade-union fee in Vietnam in 2025 as follows:

- The 2% union contribution fund is calculated on the total salary of employees who are subject to social insurance as prescribed by the law on social insurance.

Therefore, the basis for determining the Salary Fund for units to pay a 2% union contribution in 2025 is calculated on the average salary for social insurance in the first 6 months of 2024 at the unit (calculated according to the statutory pay rate stipulated in Decree 73/2024/ND-CP dated June 30, 2024, of the Government of Vietnam and the regional minimum wage according to Decree 74/2024/ND-CP dated June 30, 2024, of the Government of Vietnam) multiplied by the number of employees subject to social insurance according to the law on social insurance and multiplied by 12 months.

- The trade union fee is collected from union members based on the salary and salary allowance in each area and according to Decision 1908/QD-TLD dated December 19, 2016, of the Vietnam General Confederation of Labour.

- The staffing quotas assigned: This is the staffing quota of union officials assigned by the General Confederation or the Provincial Party or City Party Committee. Contract workers permitted to be contracted by the General Confederation or the Provincial Party or City Party Committee (accompanied by documents and decisions of the competent authority, allowing for staffing, hiring of labor) and contracted labor according to Decree 111/2022/ND-CP dated December 30, 2022, of the Government of Vietnam on contracts for certain jobs in administrative bodies and public service provider.

- Revenue distribution at levels, expenditure proportions at items, and expenditure levels of contents ensuring compliance with current state regulations and of the General Confederation.

- Provincial and city branch of the Labor Union; Central sectoral union and equivalents; Group subsidiary union directly affiliated with the General Confederation must strictly perform the statistical counting of labor and union members in subordinate units with and without union organizations, forecast changes in labor and union members in 2025, cooperate with local social insurance agencies to calculate the average wage for social insurance of the first 6 months of 2024, from there determine the 2% union contribution revenue in 2025 ensuring accuracy to the reality.

On the basis of the management data of the Central and local social insurance agencies, the General Confederation will inspect and compare with the estimates of the units for consideration and approval.

Additionally, Decision 1754/QD-TLD of 2024 guides on the wage fund collecting union contribution as follows:

The salary fund determined to collect the union contribution in 2025 at units is determined from the average social insurance salary for employees for the first 6 months of 2024, calculated according to the statutory pay rate prescribed in Decree 73/2024/ND-CP dated June 30, 2024, of the Government of Vietnam and the regional minimum wage according to Decree 74/2024/ND-CP dated June 30, 2024, of the Government of Vietnam (according to data provided by the social insurance agency) multiplied by the number of employees subject to union contribution determined at section “1.1. Employees subject to pay union contribution” of this regulation and multiplied by 12 months.

The estimated revenue of the trade-union fee production and business sector at provincial and city branches of the Labor Union; Central sectoral unions and equivalences; Group subsidiary unions directly affiliated with the General Confederation is the data to input into the Software for collecting trade-union fee in the production and business sector in 2025 according to Guideline 1305/HD-TLD dated August 15, 2017, of the Vietnam General Confederation of Labour guiding the collection of union contributions from the production and business sector via the General Confederation's account; Guideline 09/HD-TLD dated September 10, 2020, guiding the collection via the Vietnam Trade Union’s account opened at the Vietnam Bank for Agriculture and Rural Development; Guideline 85/HD-TLD dated April 18, 2023, guiding collection via the Vietnam Trade Union’s account opened at the Joint Stock Commercial Bank for Investment and Development of Vietnam.

Units are to build the estimated union contribution revenue for 2025 to increase by at least 5% compared to the estimated figures of 2024.

More details can be found in Decision 1754/QD-TLD of 2024.

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