Latest instructions for deducting and paying trade union fees

A trade union is an organization that stands on the side of workers and plays a necessary role in protecting workers’ rights. However, unions also need funds to operate. So how to deduct and pay union fees? Smart Solutions For Business Company Limited(S4B Vietnam) will present “Latest instructions for deducting and paying trade union fees” through the following article.

1. Who must pay union dues?

Article 26 of the 2012 Trade Union Law clearly states:

  • Trade union dues are paid by trade union members according to the provisions of the Charter of the Vietnam Trade Union;
  • Trade union fees paid by agencies, organizations and enterprises are equal to 2% of the salary fund as a basis for paying social insurance for employees;

From the above regulations, it can be seen that union dues will be paid by union members. In other words, only workers who join the union must pay these union dues. In case the employee does not participate or the enterprise does not establish a grassroots union, the employee will not have to pay union dues.

Meanwhile, paying union fees will be the responsibility of the employer. Whether an enterprise has established a grassroots union or not, it must pay this fee.

Union dues and union funds are all sources of union financial revenue used to organize activities directly related to the rights of workers such as cultural, sports, and tourism activities; Visit and provide benefits to employees when sick, pregnant, in trouble, etc.; Reward workers and children of workers with achievements in study, work, etc.

Instructions for collecting trade union fees and union dues in 2024

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2. Latest union dues payment rate

According to Article 23 of Decision 1908/QD-TLD in 2016, union dues payment rates are implemented as follows:

2.1 Union members at grassroots trade unions, agencies, organizations, and units receive salaries according to the salary schedule and salary levels prescribed by the State:

Monthly payment rate = 1% x Salary as the basis for social insurance payment

The salary used as a basis for social insurance payment is the salary for rank, position, salary according to labor contracts, work contracts and position allowances, extra seniority allowances, and career seniority allowances.

2.2 Union members at grassroots trade unions of state-owned enterprises (including unions of state-owned joint stock companies holding controlling shares):

Monthly payment = 1% x Actual salary

In there:

  • Actual salary: Salary with deductions for social insurance, health insurance, unemployment insurance, and personal income tax of union members.
  • Maximum union dues = 10% x Base salary = 149,000 VND/month (Current base salary is 1.49 million VND/month).

2.3 Trade union members at non-state enterprise establishments:

Monthly payment rate = 1% x Salary as the basis for social insurance payment

Maximum union dues = 10% x Base salary = 149,000 VND/month.

2.4 In case of not having to pay union fees:

  • Trade union members receive social insurance benefits for 01 month or more while receiving benefits;
  • Trade union members are unemployed, have no income, or are on personal leave for 1 month or more without salary.

Union dues explained

3. Will there be a penalty for not paying union dues?

As mentioned, employees who are union members are responsible for paying union dues. If the employee does not pay this amount, the employee will not be punished according to the provisions of law because there is no document stipulating the penalty for this behavior. However, employees will be responsible according to the provisions of the union charter.

In case an enterprise refuses to pay or does not pay enough union fees, it will be punished according to Decree 12/2021/ND-CP. Specifically, Article 37 of this Decree stipulates:

3.1 Fine from 12% – less than 15% of the total amount of union dues if:

  • Late payment of union dues;
  • Paying trade union fees incorrectly at the prescribed level;
  • Paying trade union fees is not enough for the number of people who must pay.

3.2 Fine from 18% – 20% of the total amount of union dues: Failure to pay union dues for all employees subject to payment.

Note: The fine in these cases must not exceed 75 million VND.

In addition, enterprises must also pay to the trade union the amount of late paid, insufficiently paid or unpaid union dues and the interest on the unpaid or late paid union dues according to the deposit interest rate. the highest non-term demand of state-owned commercial banks within 30 days from the date of the sanctioning decision.

S4B Vietnam

  • Address: Unit 602A, Tower A, Handi Resco Office Building. 521 Kim Ma Street, Ba Dinh District, Hanoi
  • Tel: + 84 24 3974 4181
  • Email: service@s4b.com.vn

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