Regarding exemption from trade union dues to the end of 2020

Official letter No. 808/TLD dated August 6th, 2020 of the Vietnam General Confederation of Labour regarding addition of entities who must not contribute to trade union dues

According to this Official letter, trade union members who are receiving salary lower than the basic wage level (VND 1,490,000/month) shall be exempt from contribution to trade union dues until their salary is increased higher than the aforesaid level. However, this regulation is only applied from January 23rd, 2020 (the date of occurrence of Covid-19 epidemic as declared under Decision No. 447/QD-TTg) to the end of 2020.

This Official letter replaces Official letter No. 771/TLD dated July 29th, 2020.

Previously, at point 3.2 of Guidance No. 05/HD-LDLD dated March 31st, 2020, Ho Chi Minh city Federation of Labour provided guidelines as follows:

Trade union members that are affected by Covid-19 in the following cases shall be entitled to exemption from, reduction of trade unions dues corresponding to their reduced salary and period of work:

– Reduction of trade unions dues: trader union members’ salary is reduced.

– Exemption from trade unions dues: trader union members fall into these cases:

+ Entitlement to unemployment benefit from 01 month or more;

+ Having no job, no salary;

+ Taking leave for at least 01 month without pay.According to Guidance No. 2212/HD-TLD dated November 6th, 2018, trade union dues refer to 2 different amounts which are trade union contributions (paid by enterprises) and trade union fees (paid by trade union members)
– Payment rate of trade union contributions is 2% of the total salary fund on which social insurance contributions are based. In which, internal trade union may retain 69% and the reaming 31% shall be remitted to its superior trade union.
– Trade union fees shall be paid at the rate of 1% of monthly salary and must not exceed 10% of the basic wage level (VND 1,490,000/month according to the current the basic wage level regulated at Decree No. 38/2019/ND-CP). Internal trade union may retain 60% and the reaming 40% shall be remitted to its superior trade union (Official letter No. 2483b/TLD dated December 18th, 2018).

Source: vietlawonline.com

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