The Vietnam General Confederation of Labor has issued a decision to postpone union fee payments for businesses that have had their orders cut or reduced.
Accordingly, the Vietnam General Confederation of Labor agreed to allow enterprises that have reduced 50% or more of their employees participating in social insurance compared to January 1, 2023 (including employees who have stopped working, suspended contracts, or agreed to take unpaid leave) due to the business cutting or reducing orders to postpone paying union fees until December 31, 2023.
The Standing Committees of the Provincial and Municipal Labor Federations; Central and equivalent Industry Trade Unions; and Trade Unions of Corporations under the General Confederation shall review, determine and be responsible for deciding to allow enterprises whose orders have been cut or reduced to delay payment of union fees until December 31, 2023.
The Finance Board of the General Confederation of Labor; provincial and municipal Labor Federations; Central and equivalent industry trade unions, and trade unions of corporations directly under the General Confederation of Labor are responsible for implementing this Decision.
Many businesses are facing difficulties due to a decline in orders (Illustration: Pham Nguyen).
In mid-June, the Private Economic Development Research Board (Board IV) proposed not to pay union dues to higher levels until the end of 2024, but to retain the foundation to support workers. This proposal aims to limit the situation of withdrawing social insurance at one time due to the wave of layoffs that is expected to last until the end of this year.
Pursuant to Clause 2, Article 26 of the 2012 Trade Union Law , currently, trade union fees paid by agencies, organizations and enterprises are equal to 2% of the salary fund used as the basis for social insurance contributions for employees.
Salary includes: Salary and salary allowances and other supplements except allowances not subject to social insurance.
According to the Vietnam Trade Union Charter, all union members must pay a union fee of 1% of their salary as the basis for social insurance contributions. The maximum monthly contribution that union members must pay is no more than 10% of their base salary.
Non-union members are not required to pay the above union dues. Employees must pay the dues if they are union members and have a union organization. If there is no union, they do not have to pay this fee.
The subjects that must pay union fees are enterprises, organizations or employees, regardless of whether they have a union or not.
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