Decree No. 191/2013/ND-CP on Trade Union Finance

Decree No. 191/2013/ND-CP dated November 21, 2013, on Trade Union Finance:

1. Sources of Trade Union Finance

• Trade union funding (paid by employers): 

1. • Rate: 2% of the total payroll used as the basis for paying social insurance for employees. 

• • Payers: All organizations and enterprises employing labor (regardless of whether a grassroots trade union has been established). 

1. • Note: This amount is not deducted from employees’ wages. 

• Trade union membership fees (paid by union members): 

1. • Rate determined by the Vietnam General Confederation of Labor. 

1. • Usually calculated based on actual salary or regional minimum wage. 

• Other revenues: from business activities, sponsorships, donations, interest from deposits, rental of trade union assets, etc. 

2. Management and Use of Trade Union Finance 

• Principles: Transparency, publicity, proper use, and correct beneficiaries. 

• Expenditure purposes include: 

• • Regular trade union operations; 

• • Training union officials, labor law education; 

• • Support for workers in hardship or labor accidents; 

• • Maintenance and repair of trade union property… 

3. Collection, Remittance, and Management Regime 

• Employers must remit the 2% trade union funding monthly, no later than the social insurance payment deadline. 

• Grassroots trade unions collect membership fees from their members. 

• Social insurance authorities are responsible for assisting in the inspection and supervision of compliance. 

4. Sanctions for Violations 

• Organizations or enterprises that fail to fulfill their obligation to pay trade union funding are subject to penalties under applicable law (including retroactive payments and administrative sanctions). 

• Misuse of trade union funds may result in disciplinary action, administrative penalties, or even criminal liability depending on the severity.