What is remittance level of remitting trade-union fee for companies in Vietnam?

What is remittance level of remitting trade-union fee for companies in Vietnam?

In Article 26 of the Law on Trade Union 2012, it is stated:

Finance of Trade Union includes the following revenues:

1. Trade Union fee is paid by trade union members as prescribed in the Charter of Vietnamese Trade Union;

2. Trade Union funds are paid by agencies, organizations and enterprises in 2% salary funds based to pay social insurance for laborers;

3. State budget allowances for assistance;

4. Other revenues from activities of culture, sport, ecomomy of Trade Union; from projects, plans assigned by the State; from aid, funding of domestic and foreign organizations, individuals.

And in Article 5 of Decree 191/2013/ND-CP, there are the remittance level and basis of remitting trade-union fee as follows:

The remittance level shall be 2% of salary fund which are used as the basis for social insurance payment for employees. This salary fund shall be total salaries of employees under objects payable social insurance in accordance with law on social insurance.

Particularly for units of armed forces specified at Clause 1 Article 4 of this Decree, the salary fund means total salaries of national defense cadres, workers and public employees, employees working and enjoying salary in plants, enterprises, grassroots units of People's army; cadres, workers and public employees, employees working and enjoying salary in the science-technical, non-business and serving enterprises, agencies, units of People’s Public Security.

Thus, according to the above regulations in Vietnam, companies and enterprises will have to pay union fees at the rate of 2% of salary fund which are used as the basis for social insurance payment for employees as prescribed by law on social insurance.

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