Vietnam’s 2024 Trade Union Law: how much union dues must FDI enterprises pay

"Trade union dues" (kinh phí công đoàn) is a payment almost every FDI enterprise must make — yet it is also one of the most misunderstood. The most common misunderstanding: "the company has no trade union yet, so it doesn't have to pay." This view is wrong.

This article analyzes FDI enterprises' union-dues obligations under Vietnam's Trade Union Law 2024 (No. 50/2024/QH15, effective from 01/7/2025) and the guiding documents still in force.

Table of contents

• 1. Trade Union Law 2024: what's new
• 2. The 2% rate: on what basis?
• 3. Payment schedule and method
• 4. Must enterprises without a trade union still pay?
• 5. Disclosure obligation to employees
• 6. Penalties for non-payment or late payment
• 7. Compliance checklist for FDI enterprises
• Q&A

1. Trade Union Law 2024: what's new {#s1}

• Number: Law No. 50/2024/QH15, passed by the National Assembly on 27/11/2024 at the 8th session, XVth legislature;
• Effective: from 01/7/2025 (Article 37); Trade Union Law No. 12/2012/QH13 ceased at the same time;
• Structure: 6 chapters, 37 articles.

The 2024 Law covers: functions, duties, powers, and responsibilities of the Vietnam General Confederation of Labour; employees' rights to establish, join, and operate trade unions; employee organizations at enterprises joining the Vietnam General Confederation of Labour; rights and responsibilities of union members; responsibilities of the State, agencies, organizations, units, enterprises, and employers toward trade unions; guarantees for union operations; resolution of disputes over union rights and handling of violations of trade union law (Articles 35, 36).

For FDI enterprises, the key point: provisions on employer responsibilities toward trade unions are clarified and more detailed — internal regulations, collective labor agreements, and union consultation procedures should be reviewed for alignment with the new law.

2. The 2% rate: on what basis? {#s2}

Under Article 5 of Decree 191/2013/ND-CP:

The payment rate is 2% of the salary fund used as the basis for social insurance contributions for employees. That salary fund is the total salary of employees subject to mandatory social insurance under social insurance law.

Three practical consequences:

1. Tightly tied to the social insurance salary base. Under-declaring the social insurance salary base to "save" contributions will trigger retroactive collection of union dues as well when inspected — the two payments share the same base.
2. Ceiling follows the social insurance ceiling. The monthly social-insurance salary is capped at 20 times the basic salary under social insurance law — union dues have a corresponding ceiling per employee.
3. Numerical example: a company with a VND 1 billion/month social insurance salary base must pay VND 20 million/month in union dues.

3. Payment schedule and method {#s3}

Under Clause 2, Article 6 of Decree 191/2013/ND-CP:

• Organizations and enterprises: pay trade union dues once a month, at the same time as mandatory social insurance contributions for employees;
• Agricultural, forestry, fishery, and salt enterprises paying wages by production/business cycle: pay monthly or quarterly, at the same time as mandatory social insurance, based on registration with the trade union organization.

Practical management: HR/accounting should merge union-dues payment into the same process as social insurance — one schedule, one reconciliation, less risk of omission.

4. Must enterprises without a trade union still pay? {#s4}

Yes — still must pay. The obligation to pay trade union dues arises under the law, independently of whether the enterprise has established a grassroots trade union organization. Enterprises without a trade union must still pay union dues in full at the prescribed rate.

This is the most misunderstood point among FDI enterprises — especially newly established and small companies. The argument "no union yet, so no dues yet" has no legal basis and is a common reason for retroactive collection on inspection.

5. Disclosure obligation to employees {#s5}

Under Article 43 of Decree 145/2020/ND-CP, employers must disclose to employees the payment of trade union dues.

Transparency on union dues is a legal obligation, not just an internal matter. Enterprises should: post or notify in writing the amounts paid; keep complete documentary records for inspection.

6. Penalties for non-payment or late payment {#s6}

Under Article 36 of the 2024 Trade Union Law: agencies, organizations, units, enterprises, and individuals violating this Law and other relevant trade-union laws are, depending on the nature and seriousness of the violation, subject to disciplinary action, administrative penalties, or criminal prosecution; if damage is caused, compensation must be paid.

Specific administrative fine levels are prescribed by the Government in the decree on administrative penalties in the trade union field — enterprises should check the decree in force when inspected. Besides fines, enterprises face retroactive collection of unpaid dues.

7. Compliance checklist for FDI enterprises {#s7}

• [ ] Correctly determine the salary fund used for social insurance (also the basis for the 2% union dues);
• [ ] Pay union dues monthly, at the same time as mandatory social insurance;
• [ ] Keep transfer documents to the trade union organization's account;
• [ ] Disclose dues payment to employees (Article 43, Decree 145/2020);
• [ ] Review internal regulations and collective labor agreements under the 2024 Trade Union Law;
• [ ] Even without a trade union organization — still pay in full and on time.

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Q&A {#faq}

Q: Does an FDI company without an established union still have to pay union dues?

A: Yes. The obligation to pay trade union dues arises under the law, independently of whether the enterprise has established a grassroots trade union organization. Enterprises without a trade union must still pay dues in full at the prescribed rate.

Q: What is the rate of trade union dues, and on what basis?

A: The rate is 2% of the salary fund used as the basis for social insurance contributions for employees (Article 5, Decree 191/2013/ND-CP). That salary fund is the total salary of employees subject to social insurance under social insurance law. Example: a company with a VND 1 billion/month social insurance salary base must pay VND 20 million/month in union dues.

Q: When and to whom are union dues paid?

A: Organizations and enterprises pay trade union dues once a month, at the same time as mandatory social insurance contributions for employees (Clause 2, Article 6, Decree 191/2013/ND-CP). The money is transferred into the trade union organization's bank deposit account as prescribed.

Q: What are the penalties for non-payment or late payment of union dues?

A: Depending on the nature and seriousness of the violation, violators are subject to disciplinary action, administrative penalties, or criminal prosecution; if damage is caused, compensation must be paid (principle at Article 36, Trade Union Law 2024). Specific administrative fine levels are prescribed by the Government in the decree on administrative penalties in the trade union field — enterprises should check the decree in force when inspected.

Q: What new points in the 2024 Trade Union Law should FDI enterprises note?

A: Law 50/2024/QH15 (effective 01/7/2025) covers the functions, duties, powers, and responsibilities of the Vietnam General Confederation of Labour; employees' rights to establish, join, and operate trade unions; employee organizations at enterprises joining the Vietnam General Confederation of Labour; employers' responsibilities toward trade unions; guarantees for union operations; dispute resolution and handling of violations of trade union law. FDI enterprises should review internal regulations, collective labor agreements, and union consultation procedures for alignment.

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This article is general legal information and does not replace legal advice for any specific matter.

Need a lawyer for labor — trade union compliance? Contact FLAT Law Firm — we help review union-dues obligations, collective labor agreements, and internal regulations. Hotline: 0988424851.

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