Union dues are the amount of money that union members contribute to organize activities directly related to the interests of workers such as culture, sports, tourism, allowances for illness, maternity, hardship, etc.

Legal ground:

• Law on Trade Unions 2012;
• Labor Code 2019;
• Decree No. 12/2022/ND-CP;
• Decision No. 1908/QD-TLĐ dated December 19, 2016 of the Vietnam General Confederation of Labor.

Pursuant to Article 26 of the Law on Trade Unions 2012, union dues are paid by union members according to the provisions of the Charter of Vietnam Trade Unions. This means that only employees who join the union are required to pay union dues. If employees do not join a trade union or the enterprise does not establish a grassroots trade union, they will not have to pay union fees.

1. Are employees required to join a trade union?

According to Clause 1, Article 170 of the Labor Code 2019 and Clause 1, Article 5 of the Law on Trade Unions 2012, joining a trade union is an employee’s right, not an obligation. Employees have the right to freely establish, join and operate trade unions in accordance with the law. The Labor Code 2019 also strictly prohibits employers from forcing employees to join a trade union. Participation in a trade union is entirely voluntary. If an employer forces an employee to join a trade union in order to be recruited, sign or renew a labor contract, they may be fined from VND 15 to 30 million according to Point b, Clause 1, Article 36 of Decree No. 12/2022/ND-CP. This penalty level applies to individuals, while for violating organizations, the penalty level will be doubled (from VND 30 to 60 million).

2. Latest union dues payment level

According to Article 23 of Decision No. 1908/QD-TLĐ dated December 19, 2016 of the Vietnam General Confederation of Labor, the union dues payment level is regulated as follows:

• Union members at agencies, organizations, and units receiving salaries according to the salary scale and payroll prescribed by the State: The monthly contribution level is 1% of the salary used as the basis for social insurance payment.
• Union members at state-owned enterprise grassroots unions: The monthly contribution level is 1% of the actual salary, up to a maximum of 10% of the basic salary.
• Union members in private enterprise trade unions: The monthly contribution is 1% of the salary used as the basis for social insurance contributions, up to a maximum of 10% of the basic salary.
• In cases where it is difficult to determine the salary used as the basis for paying union dues or union members do not have to pay social insurance: The lowest contribution is 1% of the basic salary.

3. Who is exempted from paying union dues?

According to Clause 1, Article 26 of the 2012 Trade Union Law, union dues are paid by union members according to the provisions of the Charter of Vietnam Trade Unions. Therefore, only those who are union members are required to pay union dues. Employees who do not participate in the trade union shall not be required to pay union dues.

In addition, according to Clause 6, Article 23 of Decision No. 1908/QD-TLĐ dated December 19, 2016 of the Vietnam General Confederation of Labor, the following cases are exempted from paying union dues:

• Union members receiving social insurance benefits for 01 month or more are not required to pay union dues during the period of receiving benefits.
• Union members who are unemployed, have no income, or are on personal leave for 01 month or more without receiving salary.