Distribution of union finance in 2023 in Hanoi, Vietnam

Distribution of union finance in 2023 in Hanoi, Vietnam (Internet image)

1. Distribution of union finance in 2023 in Hanoi, Vietnam

* Distribution of union finance:

- The grassroots trade union is entitled to 60% of total union fee collection, 75% of total union fee collection, and 100% of the unit's other revenues.

- The superior trade union (3 levels) is allowed to use 40% of the total trade union dues and 25% of the total trade union dues, of which:

+ Collecting through centralized accounts: The General Confederation temporarily stipulates the distribution rate at the Software to collect 2% of the production and business areas through fanN accounts for trade unions at all levels.
(The labor market rate is 9.5%, the urban labor rate is 6.5%, and the national labor contract is 9%).

+ During the year, units pay according to the estimate; at the end of the financial year, pay according to the settlement number.

- Directing and coordination costs: The upper-level trade union, on the basis of making statistics of the units under the central trade union, the general trade union located in the locality, confirm the CPC 2%, the distribution of 25% to determine the amount of coordination funding (4%) request the General Confederation to consider providing funding for directing coordination to the units.

* Estimates of trade union financial expenses:

- Expenses incurred by the grassroots trade union: comply with Decision 4290/QD-TLD dated March 1, 2022 of the General Confederation on the promulgation of regulations on revenue, expenditure, financial, and asset management at grassroots trade unions; and Instruction 47/HD-TLD dated December 30, 2021 of the General Confederation on regulations on financial management, trade union assets, and an accounting regime for trade unions.

- Branches of trade unions at the higher level on the basis of:

Expenditure estimates must comply with the Law on Trade Unions, the Law on Budget, the Law on Public Investment, and regulations of the General Confederation. Expenditure estimates are prepared and implemented within the scope of the revenues distributed and used in the year in accordance with the specific provisions of the General Confederation:

+ Paying salaries and allowances estimated according to the number of payrolls and employees assigned by the City Party Committee, District Party Committee or competent authorities. Determine the salary fund, salary allowances, contributions according to the prescribed regime and the base salary of 1,490,000 VND/month (full 12 months).

The salary fund according to the assigned payroll quota in 2023 includes: the salary fund of the actual number of employees present as of July 1, 2022, which is determined on the basis of the salary by grade, grade and position; salary-based allowances and contributions according to the regime and salary fund of the number of employees who have not yet been recruited (but still within the total number of employees assigned), calculated on the basis of salary of VND 1,490,000/month; salary coefficient of grade 1 of A1 civil servants, salary-based allowances and prescribed contributions.

+ Administrative expenses based on state standards of "100 employees or less, a standard of 70 million VND per staff"; formula

+ Direct expenses for union member and employee care, protection, and training; expenses for union member and employee propaganda; operating expenses of units that have not yet established CSAs; other expenses are based on the previous year's implementation number (according to the final settlement number 2021) and tasks assigned by the City Confederation of Labor.

+ Expenses for the Trade Union Congress to develop the estimate according to Decision 5051/QD-TLD dated August 4, 2022
on the adoption of regulations on spending regimes for the organization of trade union congresses at all levels in preparation for the XIII Congress of Vietnam Trade Union.

+ Expenses for procurement, regular maintenance and repair of assets from recurrent expenditures and administrative management expenses; When making an estimate, keep in mind:

++ When purchasing, the information provider should provide the following details: procured assets, quantity, expected unit price, and total value.

++ Property upkeep and repair, necessary information:Name of property; original price; depreciation or amortization (for non-business units); nearest property repair and maintenance time; status quo, influence; reason and purpose of repair and maintenance; amount of work; estimated costs; execution time; completion time.

+ Provision for unanticipated expenses delegated by superiors: 5% of total recurring expenses.

* Use of Funds in Vietnam:

- An estimate of trade union financial revenue and expenditure in 2023, if the unit uses the funds allocated in Decision 4407/QD-TLD dated March 25, 2022; the unit must explain the contents of the cost estimate dossier and comply with the authority delegated by the General Confederation.

- For expenses for capital construction investment from investment funds, non-business development development funds, depreciation...:   the unit must have the project approved under the medium-term public investment plan for the period 2021–2025 and the annual plan of the General Confederation.

2. Principles for building trade union financial estimates in Vietnam 2023

- Trade union fund 2% is calculated on the total average salary paid for social insurance of employees subject to social insurance payment.

- Union fees are collected according to Decision 1908/QD-TLD dated December 19, 2016 of the General Confederation.

- Distributing expenditures at all levels of trade unions, allocating the proportion of expenditures in items and spending levels of the contents in accordance with current State and General Confederation regulations.

- During the estimation year, when the General Confederation promulgates (new) documents related to the implementation of the estimate, the units shall comply with the effect of the newly issued document.

Diem My

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE