Joint Circular No. 119/2004/TTLT/BTC-TLĐLĐVN guiding the collection and remittance of trade union funds

JOINT CIRCULAR

Guidelines for Deducting and Paying Union Fees

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Pursuant to Decree No. 133/HĐBT dated April 20, 1991 of the Council of Ministers (now the Government) guiding the implementation of the Trade Union Law;

Pursuant to Decree No. 60/2003/NĐ-CP dated June 23, 2003 of the Government detailing and guiding the implementation of the State Budget Law;

Pursuant to Article 4 of Decision No. 53/1999/QĐ-TTg dated March 26, 1999 of the Prime Minister on certain measures to encourage foreign direct investment;

The Ministry of Finance and the Vietnam General Confederation of Labor jointly issue guidelines for deducting and paying union fees as follows:

I. Objectives, Basis for Deduction, and Rate  paying union fees

1. Subjects for Deducting and Paying Union Fees

Administrative agencies of the state (including People's Committees at commune, ward, and town levels); public and non-public institutions;  Political organizations, political-social organizations, social organizations, occupational organizations; armed forces where trade unions operate according to the Trade Union Law and the Charter of the Vietnam General Confederation of Labor (hereinafter referred to as administrative and institutional agencies).

Enterprises belonging to various economic sectors (state-owned enterprises, private enterprises, limited liability companies, joint-stock companies, and other types of enterprises as stipulated by law) where trade unions operate according to the Trade Union Law and the Charter of the Vietnam General Confederation of Labor.

Foreign-invested enterprises are not subject to the obligation to pay union fees as prescribed in this Circular, but they shall ensure and create favorable conditions for trade unions to operate in accordance with Articles 154 and 155 of the Labor Code. In cases where foreign-invested enterprises voluntarily deduct and pay union fees, such actions shall be carried out based on a written agreement between the enterprise and the trade union body.  ensuring and creating favorable conditions for trade unions to operate in accordance with Articles 154 and 155 of the Labor Code. In cases where foreign-invested enterprises voluntarily deduct and pay union fees, such actions shall be carried out based on a written agreement between the enterprise and the trade union body.

2. Rates and Bases for Deducting and Paying Union Fees

a/ Administrative and institutional agencies shall deduct and pay union fees at a rate of 2% of the salary fund according to rank and grade and any additional allowances mentioned below in point c.

b/ Enterprises shall deduct and pay union fees at a rate of 2% of the salary fund,  wages payable to workers and any additional allowances mentioned below in point c.

c/ Additional allowances serving as the basis for deducting and paying union fees  mentioned in points a and b above are consistent with allowances serving as the basis for deducting and paying  social insurance and health insurance, including: Position allowance, position election allowance, responsibility allowance, seniority allowance, regional allowance (if applicable).  d/ For administrative agencies implementing personnel quotas and administrative management budgets; income-generating public institutions operating under self-financing mechanisms: The salary fund serving as the basis for deducting and paying union fees does not include the adjustment factor for increasing the minimum wage; it shall be implemented in accordance with current regulations for administrative and institutional agencies.

II. Methods of Deduction, Accounting, and Settlement of Union Fees

1. Methods of Deduction and Payment of Union Fees:

a/ For administrative and institutional agencies:

Each month, when the unit withdraws funds for salaries, it simultaneously prepares a withdrawal form for union fees to be submitted to the trade union body through the State Treasury.

The State Treasury branch where the unit maintains its account, based on the withdrawal form for union fees, shall implement control over expenditures and transfer the funds into the dedicated account for collecting union fees opened at the State Treasury.

At the end of each month, State Treasury branches at all levels shall settle accounts and transfer the collected union fees into the deposit account of the trade union body as follows: 

For central government budget units, the funds shall be transferred to the deposit account of the Vietnam General Confederation of Labor at the State Treasury in Hanoi.

For local government budget units, the funds shall be transferred to the deposit account of the Provincial Federation of Labor Unions at the State Treasury in the respective province or city.

State Treasury branches at all levels shall not allow units to withdraw union fees for purposes other than their intended use.

b/ For units and organizations not receiving salaries from the state budget and enterprises where trade unions operate:  Heads of units and organizations; directors of enterprises shall be responsible for deducting and paying full union fees once every quarter in the first month of each quarter to the trade union body in accordance with the provisions of the Vietnam General Confederation of Labor.

2. Accounting and Settlement of Union Fees  For administrative and institutional agencies: The amount deducted and paid as union fees shall be recorded and settled in sub-item 03, item 106 of the group of expenditure items for human resources corresponding to the relevant chapter, type, and section.

For enterprises: The amount deducted and paid as union fees shall be recorded in production costs or circulation expenses and settled in accordance with current regulations.

1. Trade union bodies at all levels shall take the lead in coordinating with financial authorities and tax authorities at the same level to inspect the deduction and payment of union fees by agencies and enterprises.

2. State Treasury branches at all levels shall be responsible for inspecting and controlling the implementation of the deduction and payment of union fees by administrative and institutional agencies. If a unit fails to complete the procedures for paying union fees, the State Treasury shall temporarily hold back the budget allocation for human resource expenditure items (corresponding to the amount of union fees that should be paid) and require the units to complete the procedures for paying union fees in accordance with the regulations. By December 31, the State Treasury shall transfer the remaining balance of the union fee account to the next year for continued use.  3. The Vietnam General Confederation of Labor shall be responsible for prescribing and guiding the management, distribution, and use of union fee sources in accordance with the Charter of the Vietnam General Confederation of Labor.

III. Implementation:

4. Heads of administrative and institutional agencies shall be responsible for timely and fully paying union fees into the dedicated account for collecting union fees opened at the State Treasury.

5. Directors of enterprises and heads of units and organizations not receiving salaries from the state budget shall be responsible for timely and fully deducting and paying union fees to the grassroots trade union for management, use, and submission to higher-level trade unions in accordance with the provisions of the Vietnam General Confederation of Labor.  use.

3. The General Confederation of Labor of Vietnam shall be responsible for stipulating and guiding the management, distribution, and use of trade union funds in accordance with the Charter of the Vietnam Trade Union.

4. Heads of administrative and public service agencies shall be responsible for timely and fully remitting trade union funds into the specialized account for trade union funds opened at the State Treasury.

5. Directors of enterprises, heads of units and organizations not receiving salaries from the state budget shall be responsible for timely and fully deducting and remitting trade union funds to the grassroots trade unions for their management, use, and submission to higher-level trade unions in accordance with the regulations of the General Confederation of Labor of Vietnam.

This Circular shall take effect fifteen days after its publication in the Official Gazette and shall supersede Circulars Jointly Issued No. 76/1999/TTLT/BTC-TLĐ dated June 16, 1999, No. 74/2003/TTLT/BTC-TLĐLVN dated August 1, 2003, and No. 126/2003/TTLT/BTC-TLĐ dated December 19, 2003, jointly issued by the Ministry of Finance and the Vietnam General Confederation of Labor guiding the collection and submission of trade union funds.

During implementation, any difficulties should be promptly reported to the Ministry of Finance and the Vietnam General Confederation of Labor for study and resolution./.