Trade Union Fee Payment Regulations Effective from May 16, 2026: What Should Businesses Pay Attention To?

Government Decree No. 105/2026/ND-CP, providing guidance on the implementation of the 2024 Trade Union Law, officially came into effect on May 16, 2026, introducing several significant changes in the management and collection of trade union funds. Notably, the regulations concerning payment deadlines, acts constituting non-payment of trade union funds, and employers’ responsibilities have been clarified more comprehensively than before. These changes require businesses to review their labor management procedures, payroll administration, and related financial obligations to avoid unnecessary legal violations.

The following article summarizes the key points that businesses should pay particular attention to.

New Changes to Trade Union Fees Under Decree No. 105/2026/ND-CP

Effective from May 16, 2026, Decree No. 105/2026/ND-CP officially provides detailed guidance on several provisions of the 2024 Trade Union Law concerning trade union finance.

These new regulations not only clarify employers’ obligations to contribute trade union funds but also establish clearer criteria for identifying violations, specifying payment deadlines, and defining circumstances under which financial obligations may be exempted.

Timely understanding and implementation of these new regulations will help businesses proactively manage legal risks while avoiding additional assessments, penalties, or administrative sanctions during labor inspections and tax audits.

Trade Union Fee Payment Deadlines Are Clearly Defined

One of the most noteworthy changes introduced by Decree No. 105/2026/ND-CP is the explicit regulation of deadlines for paying trade union funds.

For most enterprises, government agencies, organizations, and cooperatives that make monthly trade union fund contributions, payment must be completed no later than the last day of the following month.

Enterprises operating in the sectors of:

• Agriculture

• Forestry

• Fisheries

• Salt production

that pay wages according to production or business cycles are permitted to make trade union fund contributions once every three months.

In such cases, payment must be completed no later than the last day of the month immediately following the contribution cycle.

Compared with previous regulations, the payment deadlines are now much clearer, making it easier for businesses to monitor and fulfill their financial obligations in accordance with the law.

Clarification of Acts Constituting Failure to Pay Trade Union Fees

For the first time, the new Decree specifically defines circumstances that are considered failures to pay trade union funds.

Accordingly, an enterprise will be deemed to have failed to fulfill its obligation if it falls into any of the following situations:

• Failing to deduct and remit trade union funds as prescribed.

• Paying less than the required contribution amount.

• Reporting fewer employees than those subject to mandatory contribution.

• Maintaining an underpayment or underreported employee count for more than 60 days after the payment deadline.

These provisions indicate that regulatory authorities will no longer assess only whether a company has made payment but will also evaluate:

• The completeness of the contribution amount.

• The accuracy of the employee headcount used as the contribution basis.

Therefore, businesses should regularly reconcile:

• Employee records.

• Payroll data.

• Social insurance records.

to minimize errors that could result in legal violations.

Which Businesses Are Required to Pay Trade Union Fees?

According to Decree No. 105/2026/ND-CP, the following entities are required to contribute trade union funds:

• Enterprises.

• Public service units that are not fully funded (100%) by the State budget.

• Cooperatives.

• Cooperative unions.

• Other organizations employing workers.

The contribution rate is calculated at:

2% of the payroll fund used as the basis for compulsory social insurance contributions.

Importantly, whether or not an enterprise has established a grassroots trade union does not affect this obligation.

In other words, as long as an enterprise employs workers who are subject to compulsory social insurance, it must contribute trade union funds in accordance with Vietnamese law.

Are Enterprises Without a Grassroots Trade Union Still Required to Pay?

This is one of the most frequently asked questions raised by businesses.

Under current regulations, the obligation to contribute trade union funds does not depend on whether an enterprise has established a grassroots trade union organization.

As long as the enterprise employs workers who participate in compulsory social insurance, it is still legally required to pay trade union funds.

Therefore, the absence of a grassroots trade union does not constitute grounds for exemption.

Entities subject to this obligation include:

• Enterprises of all economic sectors.

• Public service units not fully funded by the State budget.

• Cooperatives and cooperative unions.

• Other organizations, agencies, and entities employing workers in accordance with the law.

Businesses should avoid the misconception that only organizations with established trade unions are required to make trade union-related financial contributions.

Trade Union Fund Contribution Rate in 2026

According to the 2024 Trade Union Law, the trade union fund contribution rate remains unchanged at:

2% of the payroll fund serving as the basis for compulsory social insurance contributions.

This contribution is paid entirely by the employer and may be recognized as a deductible business expense in accordance with applicable accounting regulations.

For enterprises that have established grassroots trade unions, besides the employer's 2% contribution, trade union members are also required to pay trade union membership dues in accordance with regulations issued by the Vietnam General Confederation of Labour.

Currently, the membership due is:

0.5% of the employee's salary used as the basis for compulsory social insurance contributions.

Businesses should therefore clearly distinguish between:

• Trade Union Fund Contribution (paid by the employer).

• Trade Union Membership Due (paid by union members).

Understanding this distinction is essential for proper compliance with financial obligations.

Cases Eligible for Exemption from Trade Union Fund Contributions

Decree No. 105/2026/ND-CP also specifies several exceptional circumstances under which unpaid trade union fund obligations may be exempted.

Specifically, enterprises, cooperatives, or cooperative unions that are undergoing:

• Dissolution procedures; or

• Bankruptcy proceedings

in accordance with applicable laws may apply to the competent trade union authority for exemption from outstanding unpaid trade union fund obligations.

However, such exemptions are not granted automatically.

They must follow specific procedures, documentation requirements, and approval processes as prescribed by the Vietnam General Confederation of Labour.

Therefore, businesses experiencing financial difficulties should proactively communicate with the relevant trade union authorities for detailed guidance.

What Are Trade Union Funds Used For?

According to the 2024 Trade Union Law, trade union financial resources are intended to support activities that protect the legitimate rights and interests of employees.

Trade union funds may be used for various purposes, including:

• Representing and protecting employees' rights and interests.

• Providing financial support to union members and employees facing hardship.

• Organizing vocational training and professional development programs.

• Holding cultural and sporting activities.

• Rewarding employees with outstanding achievements.

• Developing trade union organizations.

• Constructing facilities that improve employees' welfare and living conditions.

• Promoting digital transformation and innovation in trade union operations.

The management and use of trade union funds must comply with the principles of:

• Transparency.

• Accountability.

• Proper use for lawful purposes.

as required by law.

Conclusion

The implementation of Decree No. 105/2026/ND-CP from May 16, 2026 has clarified numerous important provisions regarding enterprises' obligations to contribute trade union funds.

In particular, the regulations concerning:

• Payment deadlines.

• Acts regarded as failure to pay trade union funds.

• Applicable entities.

• Contribution rates.

will have a direct impact on corporate human resource management, payroll administration, and legal compliance.

Businesses should proactively review employee records, payroll data, and internal procedures relating to trade union obligations to ensure full compliance with current regulations while minimizing legal risks during future inspections, audits, and examinations.

Viet Australia
Viet Australia Auditing Company is an independent auditing organization licensed and established in 2007 in the Socialist Republic of Vietnam.