Payment of Trade Union fees for expatriates working in Vietnam
On 31 March 2020, Ho Chi Minh City Federation of Labor has issued Instruction No. 05/HD-LĐLĐ regarding payment of Trade Union Fees by employer and employee, details as below:
Expatriates working in Vietnam:
- If expatriates are subject to compulsory social insurance as regulated by law, employers are required to contribute Trade union fees;
- Trade union fee: 2% of the monthly salary level used as a basis for social insurance contribution;
- Time for payment of Trade union fees: On monthly basis from 01 December 2018.
| Trade Union Fee by employer | Trade Union Fee by employee |
|---|---|
| Extend payment date | |
| Subjects of application: Enterprises with 50% or more of employees who contribute social insurance have to temporarily stop working among total number of employees before temporarily suspending the business; Enterprises lose more than 50% of their total asset value due to epidemics (excluding real estates). | Subjects of application: unionists participating in the local unions that are affected by the Covid-19 epidemic for business operation suspension, being delayed of salary payment. |
| Requirement: Enterprises having certification issued by the Social Insurance Authority as guided in Official Letter 553/BHXH-QLT dated 23 March 2020 by Ho Chi Minh City Social Insurance Department. | Requirement: Notice, Decision for payment delay of salary by employers, list of unionists for extend payment date of union fee confirmed by the local Trade Union. |
| The payment deadline for trade union fees by employer and employee in the first 6 months of 2020 is extended. | |
| Extension of payment date: Until 30 June 2020. After this extension, the Covid-19 outbreak has no signal to go down and enterprises keep facing difficulties, there might be consideration of extension until 31 December 2020. | |
| Exemption, deduction | |
| Enterprises affected by Covid-19 epidemic that have certification for exemption or deduction of social insurance contribution by the Social Insurance Authority shall contribute trade union fees by the level of exempted/deducted base salary for social insurance contribution. | Deduction of trade union fee by employee: Apply for unionists having decreased income. Exemption of trade union fee by employee: Apply for unionists who: receive unemployment insurance from 1 month or more; Jobless or no salary; Stop working from 01 month or more without salary paid. Requirement: Notices, Decisions by employers; the list of unionists for exemption or deduction of trade union fees confirmed by the local Trade Union; Certification of exempted/deducted salary level for social insurance (certified dossier by social insurance authorities to enterprises, decisions of unemployment insurance payment by authorities, etc.). |