What are union dues and trade union funds? Distinguishing between union funds and trade union fees: who pays, how much, how to pay union dues and trade union funds.
The concept of union funds and union dues
1. What are union dues?
Trade union fees are a trade union financial amount paid by enterprises, agencies, and organizations (regardless of whether or not the enterprise, agency, or organization has a grassroots trade union).
2. What are union dues?
Union dues is the term used to refer to the union financial amount paid by employees who participate in the grassroots union organization (ie union members) in the enterprise.
Note:
Workers have the right to join or not join a grassroots union.
Distinguish between union funds and union dues
1. Subjects paying union fees
➤ Subjects paying union fees
As mentioned above, the subjects participating in trade union funds are enterprises, organizations, and agencies regardless of whether or not they have a grassroots trade union organization, including:
- Public and non-public career units;
- Social organizations, socio-professional organizations;
- Political organizations, socio-political organizations, socio-political-professional organizations;
- Units of the people’s armed forces, state agencies (including People’s Committees of communes, wards and towns);
- Cooperatives and cooperative unions are established and operate in accordance with the provisions of the Law on Cooperatives;
- Enterprises operating under the Investment Law, Enterprise Law and established economic sectors;
- Foreign enterprises, organizations and agencies operating in Vietnam that employ Vietnamese citizens and are involved in trade union activities and organizations.
- Other organizations that employ workers in accordance with current labor laws.
➤ Subjects paying union dues
The subjects participating in union dues are union members at:
- State agency grassroots trade unions (including trade unions of joint stock companies whose shares are held and controlled by the State);
- Public service units receive salaries according to salary scales and salary tables prescribed by the State and units of the people’s armed forces;
- Political organizations, social organizations, socio-political organizations, socio-political-professional organizations, socio-professional organizations;
- Trade unions of non-state enterprises (including trade unions of joint stock companies whose shares are not held and controlled by the state);
- Non-public career units receive salaries not according to salary scales or salary tables as prescribed by the state;
- Cooperatives, cooperative unions, enterprises, agencies and foreign organizations operating in Vietnam.
Note:
Union members who are entitled to social insurance benefits or union members who are unemployed, have no income or are on unpaid leave for 1 month or more do not need to pay union dues during that time.
2. Union fee and union dues (union dues)
➤ Union fee payment level
The enterprise’s trade union fee contribution is 2% of the total salary of all employees participating in social insurance and is not deducted from the employee’s salary.
>> See more: How to calculate union fees.
➤ Union dues payment level
Regulations on union dues will vary depending on the group of payers. Specifically:
- 1% of salary for social insurance contribution for:
- Union members in political organizations, social organizations, socio-political organizations, socio-political-professional organizations, socio-professional organizations;
- Union members in public service units receive salaries according to salary scales and payrolls prescribed by the state, armed forces units, and state agencies.
- 1% of net salary (salary minus personal income tax, social insurance…) but not exceeding 10% of base salary for:
- Union members in state-owned enterprise unions;
- Trade unions of joint stock companies have shares held and controlled by the state.
- 1% of salary participating in social insurance but not exceeding 10% of basic salary for:
- Union members in non-state enterprise trade unions;
- Union members in joint stock companies whose shares are not held and controlled by the state;
- Union members at cooperative unions, foreign agencies and organizations operating in Vietnam;
- Union members in non-public career units do not receive salaries according to the salary scale and salary table prescribed by the state.
>> See more: How to calculate union dues.
3. Regulations on paying union fees
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4. How to pay union dues
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(*): You should contact directly the Labor Federation of the district where the enterprise is headquartered for specific advice on how to pay union fees.
5. Rate of union fund deduction and union dues
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In total union fees collected:
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Of the total union dues collected:
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Note:
Only enterprises that have established a grassroots trade union can have the higher-level trade union deduct and transfer a portion of the trade union fees according to the above allocation ratio to the enterprise’s trade union.
See also:
>> Procedures for establishing a grassroots trade union;
>> Procedures for requesting a refund of union fees and union dues.
Frequently Asked Questions About Union Funds and Union Dues
1. What are union dues?
Trade union fees are a trade union financial amount paid by enterprises, agencies, and organizations (regardless of whether or not the enterprise, agency, or organization has a grassroots trade union).
2. What are union dues?
Union dues is the term used to refer to the union financial amount paid by employees who participate in the grassroots union organization (ie union members) in the enterprise.
3. What is the difference between union dues and union fees?
The difference between union funds and union dues is clearly shown through the following criteria:
- Subjects paying union dues;
- Union dues;
- Regulations on paying union dues;
- How to pay union dues;
- Union expense allocation ratio.
>> See more: Distinguishing between union funds and union dues.
4. Are union dues mandatory?
Yes. All businesses must pay union dues (regardless of whether or not they have a grassroots union).
5. Is it mandatory to establish a grassroots trade union?
No. The establishment of a grassroots trade union at an enterprise is done on a voluntary basis, not by coercion.
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