Salary for social insurance is 5.7 million VND, how does the company pay union fees?

The Vietnam General Confederation of Labor said that through summarizing the implementation of the Trade Union Law in 2012, it shows that the proportion of trade union financial expenditure is focused on grassroots trade unions (accounting for nearly 75%) to take care of workers.

Of which, financial expenditure for welfare, training to improve qualifications and skills for union members and workers accounts for more than 84% of total expenditure.

According to Vice President of the Vietnam General Confederation of Labor Ngo Duy Hieu, maintaining the regulation on the obligation to pay union fees equal to 2% of the salary fund used as the basis for social insurance contributions for employees has been implemented since 1957.

The trade union believes that this regulation aims to ensure stable welfare for workers, contributing to the Trade Union performing well its functions of representing, caring for and protecting union members and workers.

Therefore, it is necessary to continue to ensure the union fund revenue of 2%.

In essence, the 2% revenue source is the employer's contribution to the organization and operation of the union to ensure that the union fulfills its responsibility to care for employees.

Thus, the union funds are used to benefit both employees and employers, promoting the building of harmonious, stable and progressive labor relations in enterprises.

Vice President of the Vietnam General Confederation of Labor Ngo Duy Hieu (Photo: Hoa Le).

Through surveys, over the past years, most of the enterprise's grassroots trade unions and trade union executive committees have publicly announced to union members and employees the list of benefits (including the level of expenses) they are entitled to each year, such as sick visits, Tet gifts, etc.

With the current average salary used as the basis for social insurance contributions for employees being 5.7 million/month, in 1 year, the business must pay about 1.4 million VND in union fees.

At that time, 75% of the union fee paid (about 1 million VND) will be distributed to the grassroots union to take care of union members and workers for sick visits, birthday gifts, Tet gifts, cultural and sports activities...

"In principle, we should not reduce workers' benefits, although some businesses have proposed to reduce them. If we reduce union funding, it may create a shock for workers about reduced benefits, affecting the attraction of workers to join the union. After all, maintaining union funding is aimed at ensuring workers' rights," Mr. Hieu shared.

For businesses, production and business results have an important contribution from workers. Union fees are included in the business's expenses and are accounted for in the product cost.

According to the research results of the General Confederation, union funds account for a small proportion of business costs (about 0.38%). However, using them brings benefits to both employers and employees, contributing to the creation of harmonious and stable labor relations, employees are better cared for and feel secure at work.

Therefore, although it increases business costs, in general, the Vietnam General Confederation of Labor believes that the 2% contribution rate is still within the acceptable range for the endurance of organizations and businesses.

Source: https://dantri.com.vn/lao-dong-viec-lam/tien-luong-dong-bhxh-57-trieu-dong-doanh-nghiep-nop-phi-cong-doan-ra-sao-20241009100458622.htm