Circular No. 103/TT-LB guiding the allocation and submission of trade union funds

CIRCULAR

OF THE JOINT MINISTRY OF FINANCE - GENERAL UNION OF VIETNAMESE WORKERS DECREE NO. 103/TT-LB DATED DECEMBER 2, 1994 GUIDING THE WITHHOLDING AND PAYMENT OF UNION FEES

While awaiting the Joint Ministry to submit to the Government for revision of the rate of withholding union fees according to the new salary scale, to ensure the operational funds of the Union organizations, the Joint Ministry of Finance - General Union of Vietnamese Workers temporarily guides the withholding and payment of union fees for the year 1995 as follows:

I. OBJECTS, LEVELS, AND BASIS FOR WITHHOLDING UNION FEES
UNION FEES

1. Objects:

Including administrative agencies, public service units, Party organizations, mass organizations, people's associations, domestic and foreign-owned enterprises (where there are trade union organizations).

2. Levels and basis for withholding union fees:

a) For administrative agencies, public service units, Party organizations, mass organizations, people's associations (collectively referred to as HCSN), the level of withholding union fees is 2% of the salary fund based on the rank and grade stipulated in Decree No. 25/CP dated May 23, 1993 and Decree No. 05/CP dated January 26, 1994 of the Government, and corresponding allowances such as position allowance, responsibility allowance, regional allowance, attraction allowance, hardship allowance, special allowance, security and defense allowance...

b) For enterprises, the level of withholding union fees is 2% of the actual salary paid to workers (including contractual labor).

(The current components of the salary fund are detailed in the attached annex).

II. METHODS OF WITHHOLDING AND ACCOUNTING FOR UNION FEES
UNION EXPENSES

1. For administrative agencies and HCSN units:

a) Administrative agencies, public service units, Party organizations, mass organizations, people's associations receiving salaries from local state budgets (province, city, district, county) shall have their finance departments at the provincial or district level withhold 2% of the salary fund and transfer it to the corresponding trade union agency.

b) Administrative agencies, public service units, Party organizations, mass organizations, people's associations receiving salaries from the central state budget shall have the Ministry of Finance withhold 2% of the salary fund and transfer it to the General Union of Vietnamese Workers.

2. For public service units, people's associations not receiving salaries from the state budget and enterprise units (including both domestic and foreign-owned enterprises where there are trade union organizations), the heads of these units and directors shall be responsible for directly withholding and paying the union fees to the grassroots trade unions. Where necessary, the trade union agency may agree on a contract with the tax authority to collect the fees; the 2% union fee of production and business units can be accounted for in cost or circulation expenses.

III- RESPONSIBILITIES OF THE FINANCIAL AUTHORITY AND
III. RESPONSIBILITIES OF THE FINANCE AGENCIES AND TRADE UNION ORGANIZATIONS:

1. The finance agencies are responsible for timely withholding 2% of the salary fund of units under their management and transferring the funds to the corresponding trade union agency quarterly.

2. Trade union organizations at all levels: Are responsible for coordinating with finance agencies to urge the timely withholding and payment of union fees.

The General Union of Vietnamese Workers will provide specific guidance on the distribution, use, and upward transfer of funds within the trade union system.

3. As for the 5% social insurance revenue currently managed by the trade unions, it will continue to be collected according to the existing regulations until new guidance is provided by the Joint Ministry.

IV - EFFECTIVE PROVISIONS

This circular takes effect from January 1, 1995, until replaced by new guiding documents. Any difficulties encountered during implementation should be reported to the Ministry of Finance and the General Union of Vietnamese Workers for resolution.