Guidelines on Trade Union Fee Contributions Under the Latest Regulations and Cases Subject to Retrospective Collection

On 31 March 2026, the Government issued Decree No. 105/2026/ND-CP providing detailed regulations and implementation guidance for certain provisions of the Law on Trade Unions regarding trade union finance (effective from 16 May 2026), replacing Decree No. 191/2013/ND-CP. Enterprises should take note to properly fulfill their trade union fee contribution obligations in order to avoid retrospective collection, late payment interest, and administrative penalties.

1. Current Trade Union Fee Contribution Rate

Pursuant to the Law on Trade Unions 2024, enterprises and organizations employing labor are subject to mandatory trade union fee contributions at the following rate:

• 2% of the payroll fund serving as the basis for compulsory social insurance contributions for employees.
• This contribution shall be borne by the employer and must not be deducted from employees’ salaries.

Applicable entities include:

• Enterprises;
• Public service units not receiving 100% salary funding from the state budget;
• Cooperatives and cooperative unions;
• Other agencies, organizations, and entities employing labor in accordance with regulations.

2. Method and Deadline for Trade Union Fee Contributions

Under the new regulations, most enterprises shall make trade union fee contributions as follows:

• Once per month, at the same time as compulsory social insurance contributions for employees;
• The payment deadline shall be no later than the last day of the following month.

3. Where Should Enterprises Pay Trade Union Fees?

Trade union fee payments shall be made depending on the trade union structure status within the enterprise:

• If the enterprise has established a grassroots trade union: payment shall be made through the grassroots trade union.
• If a grassroots trade union has not yet been established: payment shall be made to the directly supervising higher-level trade union in accordance with the management structure prescribed by the Labor Federation or sectoral trade union.

4. Penalties for Late Payment or Non-Payment

Pursuant to Decree No. 12/2022/ND-CP:

• Acts of late payment, underpayment of contribution amounts, or underreporting the number of employees subject to mandatory contributions may be subject to penalties ranging from 12% to less than 15% of the total amount payable, with a maximum penalty of VND 75 million.
• Failure to make contributions for all employees subject to mandatory contributions may result in penalties ranging from 18% to 20%, with a maximum penalty of VND 75 million.

In addition to administrative penalties, enterprises are also required to:

• pay the outstanding trade union fee amount in full;
• simultaneously pay late payment interest calculated based on the highest non-term deposit interest rate offered by state-owned commercial banks at the time the penalty is imposed.

5. What Should Enterprises Pay Attention To?

The new regulations indicate that regulatory authorities are strengthening enforcement of trade union fee obligations and enhancing sanctions for violations. Therefore, enterprises should:

• review and accurately identify the number of employees subject to mandatory contributions;
• verify contribution rates and payment deadlines in accordance with regulations;
• monitor monthly declaration and contribution processes;
• maintain complete records and supporting documents.

Ensuring proper compliance from the outset will help enterprises minimize the risk of retrospective collection, administrative penalties, and additional late payment interest expenses arising during business operations.

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