Decree No. 191/2013/ND-CP detailing financial matters of trade unions

 DECREE

Detailed regulations on trade union finance

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on State Budget dated December 16, 2002;

Pursuant to the Trade Union Law dated June 20, 2012;

At the proposal of the Minister of Finance;

After reaching consensus with the Vietnam General Confederation of Labor, the Government promulgates this Decree detailing regulations on trade union finance,

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Decree details regulations on trade union finance concerning income from trade union fees and state budget support.

2. For income from trade union membership fees paid by trade union members, it shall be implemented according to the provisions of the Charter of the Vietnam Trade Union.

3. For other income from cultural and sports activities, economic activities of the trade unions; from projects assigned by the State; from aid and sponsorship from domestic and foreign organizations and individuals, it shall be implemented according to relevant laws governing the management and utilization of each type of income.

Article 2. Applicability

1. Agencies, organizations, enterprises specified in Article 4 of this Decree.

2. Agencies, organizations, all levels of trade unions, and individuals related to the management and utilization of trade union finance as stipulated by the Trade Union Law.

Article 3. Principles for managing and utilizing trade union finance

1. Trade unions shall manage and utilize trade union finance in accordance with the law and the provisions of the Vietnam General Confederation of Labor.

2. The management and utilization of trade union finance must ensure the principles of centralization, democracy, transparency, and clear accountability, with defined responsibilities at each level of the trade union.

3. All levels of trade union organizations shall implement accounting, statistics, reporting, and final settlement of trade union finance in accordance with the law on accounting and statistics.

4. Trade union organizations entrusted with the management and utilization of trade union finance may open accounts at the National Treasury to reflect state budget support funds; they may also open deposit accounts at banks to reflect income and expenditure of trade union fees in accordance with the Trade Union Law.

5. At the end of the fiscal year, unused income from trade union fees shall be carried forward to the next year for continued use as prescribed; for state budget support funds, implementation shall follow the provisions of the State Budget Law and guiding documents regarding the closing of the fiscal year-end budget.

Chapter II
REGULATIONS ON TRADE UNION FEES

Article 4. Subjects contributing trade union fees

The subjects contributing trade union fees as stipulated in Clause 2, Article 26 of the Trade Union Law include agencies, organizations, and enterprises, regardless of whether such entities have established grassroots trade union organizations, including:

1. State agencies (including People's Committees of communes, wards, towns), units under the people's armed forces.

2. Political organizations, political-social organizations, social-professional organizations, social organizations, social-professional organizations.

3. Publicly and privately funded public service units.

4. Enterprises under various forms of ownership established and operating under the Enterprise Law and Investment Law.

5. Cooperatives and cooperative federations established and operating under the Cooperative Law.

6. Foreign agencies, international organizations operating in Vietnam that are related to the establishment and operation of trade unions, and foreign offices in joint venture contracts in Vietnam employing Vietnamese workers.

7. Other organizations employing labor as prescribed by labor laws.

Article 5. Contribution Rate and Basis for Union Fees

The contribution rate is 2% of the salary fund serving as the basis for compulsory social insurance contributions for employees. This salary fund is the total amount of salaries of employees who are required to contribute to compulsory social insurance according to the laws on social insurance.

For units under the armed forces as specified in Clause 1, Article 4 of this Decree, the salary fund is the total amount of salaries of defense officers, workers, and civil servants working in factories, enterprises, and grassroots units within the People's Army; officers, workers, civil servants, and laborers working in enterprises, agencies, scientific-technical units, and public service units within the People's Public Security Force.

Article 6. Methods of Paying Union Fees

1. Agencies and units whose regular operational expenses are fully or partially guaranteed by the state budget shall pay union fees once a month at the same time they make compulsory social insurance contributions for their employees.

The State Treasury where the agency or unit has an account will base its control over expenditures and transfer funds into the bank account of the trade union organization according to the withdrawal slip for union fees.

2. Organizations and enterprises shall pay union fees once a month at the same time they make compulsory social insurance contributions for their employees.

3. Agricultural, forestry, fishery, and salt production organizations and enterprises that pay salaries based on production cycles shall pay union fees monthly or quarterly at the same time they make compulsory social insurance contributions for their employees, based on agreements with the trade union organization.

Article 7. Sources of Union Fee Contributions

1. For agencies and units whose regular operational expenses are fully guaranteed by the state budget, the state budget shall fully guarantee the source of union fee contributions and allocate them in the annual regular expenditure budget of the agency or unit according to the provisions of the law on分级管理国家预算。

2. For agencies and units whose regular operational expenses are partially guaranteed by the state budget, the state budget shall guarantee the source of union fee contributions calculated based on the salary fund used for compulsory social insurance contributions for staff receiving salaries from the state budget, and allocate them in the annual regular expenditure budget of the agency or unit according to the provisions of the law on分级管理国家预算。The remaining portion of union fees to be paid shall be self-funded by the unit according to the provisions of Clauses 3 and 4 of this Article.

3. For enterprises and units engaged in production and business operations and services, the amount of union fee contributions shall be recorded as part of the production, business operation, and service costs for the period.

4. For other agencies, organizations, and units, the amount of union fee contributions shall be sourced from the operational funds of the agency, organization, or unit according to the provisions of the law.

Chapter III
PROVISIONS ON STATE BUDGET SUPPORT

Article 8. Contents Supported by the Central Budget

1. Annual membership fees for international organizations.

2. In cases where the projected financial income of the trade union does not ensure reasonable regular operational budgets of the trade union system and activities implementing the rights and responsibilities of the trade union: At the time of preparing the annual state budget according to the State Budget Law, the General Confederation of Labor of Vietnam shall prepare revenue projections for sources specified in Clauses 1, 2, and 4 of Article 26 of the Trade Union Law and expenditure projections for tasks specified in Clause 2 of Article 27 of the Trade Union Law according to the general standards and norms for administrative and public service agencies, and submit them to the Ministry of Finance for review of the shortfall, consolidation, and submission to the Government for presentation to the National Assembly for approval to provide support.

3. Regular operational expenses of public institutions directly under the General Confederation of Labor of Vietnam according to the laws on autonomy and responsibility for implementing tasks, organizational structures, staffing, and finance for public institutions.

4. Expenses for scientific and technological tasks directly implemented by the General Confederation of Labor of Vietnam.

5. Training and development expenses for cadres, civil servants, and public officials of units directly under the General Confederation of Labor of Vietnam, central industry unions, and affiliated state-owned enterprise unions.

6. Expenses for national target programs (if applicable).

7. Expenses for tasks commissioned by competent state authorities to the General Confederation of Labor of Vietnam.

8. Expenses for urgent tasks assigned by competent authorities.

9. Counterpart funds for projects with foreign capital directly implemented by the General Confederation of Labor of Vietnam, approved by competent authorities.

10. Investment and development expenses of the General Confederation of Labor of Vietnam according to approved projects by competent authorities.

Article 9. Contents supported by the local budget

1. Operating expenses of public service units directly under the local Trade Union Federation in accordance with the laws on autonomy and self-responsibility for performing tasks, organizational structure, staffing, and finance of public service units.

2. Expenses for scientific and technological tasks directly implemented by the local Trade Union Federation (if any).

3. Training and capacity-building expenses for officials, civil servants, and employees of the local Trade Union Federation and grassroots trade unions.

4. Expenses for national target programs assigned by competent state agencies (if any).

5. Expenses for tasks commissioned by competent state agencies to the local Trade Union Federation.

6. Expenses for urgent tasks assigned by competent authorities.

7. Investment development expenses of the local Trade Union Federation according to approved projects by competent authorities.

Article 10. Management and use of state budget support funds

1. Funds from which level of budget provide support shall be allocated to the agency or unit under the trade union at that level to implement; central budget shall not be used to support agencies or units under lower-level trade unions, except as provided in Clause 2, Article 8 of this Decree.

2. Agencies and units receiving state budget support must use funds in accordance with the regulations, standards, and quotas set by competent state agencies; ensure the purpose, economy, effectiveness, and have sufficient payment documents; be subject to financial inspection and control by the State Treasury during the implementation of the assigned budget.

3. The preparation of budgets, execution, accounting, and settlement of state budget support funds shall be carried out in accordance with the laws on state budget and accounting.

Chapter IV
IMPLEMENTING PROVISIONS

Article 11. Effective Date

1. This Decree takes effect from January 10, 2014. The provisions on the contribution rate of trade union fees in Article 5 of this Decree shall be implemented from the date the Trade Union Law comes into force.

2. The following documents are hereby abolished:

a) Decision No. 133/2008/QĐ-TTg dated October 1, 2008, of the Government Chairman on the allocation of trade union funds for foreign-invested enterprises and foreign management offices in joint venture contracts;

b) Circular Joint No. 119/2004/TTLT/BTC-TLĐLĐVN dated December 8, 2004, of the Ministry of Finance and the Vietnam General Confederation of Labor guiding the allocation of trade union funds; Circular No. 17/2009/TT-BTC dated January 22, 2009, of the Ministry of Finance guiding the allocation and use of trade union funds for foreign-invested enterprises and foreign management offices in joint venture contracts.

Article 12. Responsibility for Implementation

1. Organizations, enterprises have the responsibility to:

a) Pay full and timely trade union fees to trade union organizations in accordance with this Decree and the regulations of the Vietnam General Confederation of Labor on the classification of revenue collection, distribution, and management;

b) Provide complete and accurate information and documents related to the responsibility of paying trade union fees when requested by trade union organizations or competent state agencies.

2. The Vietnam General Confederation of Labor has the responsibility to:

a) Develop and promulgate financial expenditure standards and regulations for trade unions based on applying state-set standards and regulations to ensure effective management within the trade union system; stipulate the classification of revenue collection, distribution, and management (membership fees, trade union fees, other sources of income as prescribed) to be implemented within the trade union system;

b) Develop and promulgate budget allocation standards for regular operational expenses for subordinate units and trade unions at all levels based on applying the budget allocation standards for administrative management expenses for ministries, ministerial-level agencies, government agencies, and other central agencies as prescribed by the Prime Minister to ensure transparency in budget allocation, management, and use of trade union finances;

c) Direct trade unions at all levels to manage and use trade union funds in accordance with regulations; take the lead and coordinate with financial, tax, and labor inspection agencies at the same level to inspect and audit the implementation of trade union fee payments by agencies, organizations, and enterprises; recommend relevant agencies to handle violations of trade union fee payment laws.

3. The Ministry of Finance has the responsibility to allocate central budget funds to support trade union finances in accordance with Article 8 of this Decree.

4. The Chairmen of Provincial People's Committees and Municipal People's Committees directly under the Central Government have the responsibility to allocate local budget funds to support trade union finances in accordance with Article 9 of this Decree in accordance with the laws on the decentralization of state budget management.

Article 13. Responsibility for Implementation

The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial People's Committees under the central government are responsible for implementing this Decree./.