Question:
Our company employs both Vietnamese and foreign workers. I would like to ask whether our company is required to pay trade union fees for foreign workers.
Answer:
Under the Charter of the Vietnam General Confederation of Labour and Section 3.2 of Guidance No. 03/HD-TLĐ dated February 20, 2020, issued by the Vietnam General Confederation of Labour, foreign workers in Vietnam are not eligible for membership in the Vietnam Trade Union Organization.
However, the deduction of union fees at the rate of 2% of the total payroll used as the basis for social insurance contributions for workers is a mandatory requirement applicable to enterprises under:
- Clause 2, Article 26 of the 2012 Trade Union Law: Union fees shall be contributed by agencies, organizations, and enterprises at the rate of 2% of the payroll used as the basis for social insurance contributions for workers. This regulation does not differentiate between workers who are Vietnamese citizens and those who are foreign nationals.
- Article 5 of Decree No. 191/2013/ND-CP: The rate of union fee contribution is 2% of the total payroll used as the basis for social insurance contributions for all workers subject to mandatory social insurance participation.
Foreign workers working in Vietnam are subject to mandatory social insurance participation as stipulated in:
- Clause 2, Article 2 of the 2014 Law on Social Insurance: Foreign workers working in Vietnam who hold a work permit, practicing certificate, or practicing license issued by a competent authority in Vietnam are eligible for mandatory social insurance participation.
- Article 2 of Decree No. 143/2018/ND-CP: Provides detailed regulations on mandatory social insurance for foreign workers with labor contracts of one year or longer, or those with indefinite-term contracts in Vietnam.
Accordingly, companies are still required to allocate and pay trade union fees for foreign workers in accordance with regulations.
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