Headlines 16/03/2022 09:28 SA

Rate of employer’s contributions distributed to intramural trade unions to be increased

Dương Phạm

On March 1, 2022, the Vietnam General Confederation of Labor issues the Decision No. 4290/QD-TLD regarding collection, payment and management of assets at intramural trade unions.

According to this document, trade unions can retain:

- 75% of the employer’s total contribution;

(According to the Decision No. 1355/QD-TLD dated October 1, 2020, in 2021, intramural trade unions may retain 71% of the employer’s total contribution).

- 60% of employees’ union dues;

- 100% of other receipts.

Therefore, in 2022, the distribution rate of employer’s contributions will rise to 75%.

Employer’s contributions to the intramural trade union can be spent as follows:

- At least 60% of the retained amount is used to fund care, protection, training and coaching of trade unionists and employees.

At entities having complicated working relationships, intramural trade unions will take out at least 25% of this amount to be used as the contingency amount intended for protection of trade unionists and employees; within the period of 2 consecutive years during which this contingency amount is not used, it will be used for the aforesaid activities.    

- 25% of the retained amount at maximum is used to fund communication activities aimed at raising awareness among trade unionists.

- 15% of the retained amount at maximum is used to fund administrative activities.

Decision No. 4290/QD-TLD is coming into force as from March 1, 2022 as a replacement for the Decision No. 1910/QD-TLD dated December 19, 2016.

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