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Payment of Trade Union fees for expatriates working in Vietnam
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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
outbreak has no signal to go down
there might be consideration of extension until 31
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.).