Decision 8086/QD-TLD 2023 principles of construction and allocation of trade union's financial estimates for 2024

DECISION

On promulgating the regulation on the principles of construction and allocation of the trade union's financial estimates for 2024

___________________

THE PRESIDIUM OF THE VIETNAM GENERAL
CONFEDERATION OF LABOR   

- Pursuant to the 2012 Law on Trade Union; the Charter of Vietnam Trade Union;

- Pursuant to the Government’s Decree No. 191/2013/ND-CP of November 21, 2013 detailing the trade union finance;

- Pursuant to the Presidium of the Vietnam General Confederation of Labor’s Decision No. 1908/QD-TLD of December 19, 2016 on promulgating the regulation on financial management, trade union assets, revenue collection and distribution, financial rewards, penalties and payment, and other relevant regulation;

- Pursuant to the Presidium of the Vietnam General Confederation of Labor’s Decision No. 1764/QD-TLD of December 28, 2020 on promulgating the Decision on amending and supplementing a number of regulations on trade union finance;

- Pursuant to the Presidium of the Vietnam General Confederation of Labor’s Decision No. 2550/QD-TLD of April 29, 2021 on the implementation of public administrative accounting regime in accounting units of the trade union agencies and current relevant regulations of the State and the General Confederation;

- At the proposal of the Finance Board of the General Confederation.

DECIDES

Article 1. Promulgating the regulation on the principles of construction and allocation of the trade union's financial estimates for 2024

Article 2. This Decision takes effect during the fiscal year 2024.

Article 3. The departments, units under the General Confederation, and trade unions of all levels shall implement this Decision./. 

REGULATION

Principles for the construction and allocation of the trade union's financial estimates for 2024

(Promulgated with the Presidium of the Vietnam General Confederation of Labor’s Decision No. 8086/QD-TLD of October 10, 2023)

I. GENERAL PRINCIPLES FOR THE CONSTRUCTION AND ALLOCATION OF THE TRADE UNION'S FINANCIAL ESTIMATES FOR 2024

1. Pursuant to:

- The Government’s Decree No. 191/2013/ND-CP of November 21, 2013 detailing the trade union finance;

- The Political Bureau’s Conclusion No. 40-KL/TW of July 18, 2022 on enhancing the efficiency of staff management in the political system for the 2022-2026 period;

- The Presidium of the Vietnam General Confederation of Labor’s Decision No. 887/TLD of July 2, 2015, on promulgating the regulation on funds for coordination and direction;

- The Presidium of the Vietnam General Confederation of Labor’s Decision No. 1908/QD-TLD of December 19, 2016 on promulgating the Regulation on financial management, trade union assets, revenue collection and distribution, financial rewards, penalties and payment;

- The Presidium of the Vietnam General Confederation of Labor’s Decision No. 1764/QD-TLD of December 28, 2020 on amending and supplementing a number of regulations on trade union finance

- The Presidium of the Vietnam General Confederation of Labor’s Decision No. 4407/QD-TLD of March 25, 2022 on the distribution of the accumulated trade union financial balance as of December 31, 2021;

- The Coordination Regulation No. 3601/QCPH-TLD-BHXH of September 20, 2016, between the General Confederation and the Social Security on the exchange and provision of information and documents for initiating lawsuits against violations of laws on social insurance, health insurance, and unemployment insurance;

- The Presidium of the Vietnam General Confederation of Labor’s Guideline No. 1305/HD-TLD of August 15, 2017 guiding the collection of trade union dues in the production and business sector through the account of the Trade Union opened at the Vietnam Joint Stock Commercial Bank for Industry and Trade;

- The Presidium of the Vietnam General Confederation of Labor’s Guideline No. 09/HD-TLD of September 10, 2020 guiding the collection of trade union dues in the production and business sector through the account of the Trade Union opened at the Vietnam Bank for Agriculture and Rural Development;

- The Presidium of the Vietnam General Confederation of Labor’s Guideline No. 85/HD-TLD of April 18, 2023 guiding the collection of trade union fees in the production and business sector through the account of the Trade Union opened at the Bank for Investment and Development of Vietnam;

- Pursuant to the actual situation of trade union financial and asset management.

2. General Principles

- The 2% trade union due is calculated based on the total salary of employees who are required to participate in social insurance as prescribed by the law on social insurance. Therefore, the basis for determining the salary fund for paying the 2% trade union due in 2024 at units is calculated by multiplying the average salary paid for social insurance in the first 6 months of 2023 at the unit by the number of workers subject to social insurance payment according to the law regulations on social insurance.

- Trade union membership fees are collected from trade union members based on their salary and salary allowances in each region and in accordance with the Vietnam General Confederation of Labor’s Decision No. 1908/QD-TLD of December 19, 2016.

- Assigned staffing targets: refers to the staffing targets for trade union officials assigned by the General Confederation or the Provincial/City Party Committee. Contractual labor is permitted by the General Confederation or the Provincial/City Party Committee to sign contracts (accompanied by documents or decisions from the competent authority assigning the staffing targets and permitting recruitment) and contractual labor under the Government’s Decree No. 111/2022/ND-CP of December 30, 2022 on the contracts for certain types of work in administrative agencies and public service units.

- The distribution of expenditure sources at various levels, the proportion of spending on specific items, and the spending levels for each content must comply with the current regulations of the State and the Vietnam General Confederation of Labor.

- The provincial and city Confederations of Labor; Central-level sectoral and equivalent  trade unions; and trade unions of corporations under the General Confederation must strictly carry out the task of collecting statistics on the number of workers and trade union members at affiliated units that have established trade union organizations and those that have not, forecast the changes in the number of workers and trade union members in 2024, and collaborate with local social insurance agencies to calculate the average salary used for social insurance payments during the first 6 months of 2023, then determine the collection of 2% trade union due to ensure the realism and feasibility. Based on the management data from the central Social Security agency and local agencies, the General Confederation shall check and compare with the estimates of the units for approval consideration.

II. PRINCIPLES FOR ALLOCATING TRADE UNION FINANCIAL ESTIMATES

1. Regarding the collection of trade union dues

1.1. Workers required to pay trade union dues

- For agencies, organizations, and enterprises that have established grassroots trade unions:

The provincial and city Confederations of Labor; Central-level sectoral and equivalent trade unions; and trade unions of corporations under the General Confederation must carry out the task of collecting statistics on the number of workers who are required to pay trade union dues at units within the public administrative sector and the production and business sector. The workers to be included in the statistics at these units include: the number of workers paying social insurance as of June 30, 2023, encouraging units to collect data close to the time of preparing the 2024 estimate (based on data provided by the social insurance agency as prescribed in Clause 5, Article 8 of Coordination Regulation No. 3601/QCPH-TLD-BHXH), the number of workers at the unit who are required to pay trade union dues but have not yet participated in social insurance, and the number of workers expected to increase (or decrease) at the unit during the 2024 planning year.

- For enterprises that have not yet established a grassroots union:

The provincial/city Confederations of Labor; Central-level sectoral and equivalent trade unions; trade unions of corporations directly under the Vietnam General Confederation of Labor: Compile a list of enterprises that have paid social insurance as of June 30, 2023 (based on data provided by the social insurance agency), then determine the number of workers in these enterprises similar to those in agencies, organizations, and enterprises that have already established grassroots unions.

The provincial/city Confederations of Labor; Central-level sectoral and equivalent  trade unions; trade unions of corporations directly under the Vietnam General Confederation of Labor must submit a report explaining and clarifying the reasons for the discrepancy compared to the data tracked by the Organizational Department of the Vietnam General Confederation of Labor at the same time when compiling the number of workers for building the 2024 financial union budget estimates.

1.2. Regarding the wage fund for collecting trade union dues

The wage fund used to determine the collection of trade union dues for 2024 at various units is calculated based on the average salary used for social insurance payments for employees during the first 6 months of 2023, including the growth factor (according to data provided by the social insurance agency), multiplied by the number of workers required to pay trade union dues as determined in section “1.1. Workers required to pay trade union dues” of this regulation.

The estimated amount of trade union dues to be collected from the production and business sector at the provincial/city Confederation of Labor; Central-level sectoral and equivalent  trade unions; and Corporations directly under the Vietnam General Confederation of Labor is the data to be entered into the software for collecting trade union dues from the production and business sector for 2024, according to the Vietnam General Confederation of Labor’s Guidance No. 1305/HD-TLD of August 15, 2017 on collecting trade union dues from the production and business sector through the account of the Vietnam General Confederation of Labor; the Vietnam General Confederation of Labor’s Guidance No. 09/HD-TLD of September 10, 2020 on collecting trade union dues from the production and business sector through the account of the Vietnam Trade Union opened at the Vietnam Bank for Agriculture and Rural Development; and the Vietnam General Confederation of Labor’s Guidance No. 85/HD-TLD of April 18, 2023 on collecting trade union dues from the production and business sector through the account of the Vietnam Trade Union opened at the Joint Stock Commercial Bank for Investment and Development of Vietnam.

Units are to prepare the estimated collection of trade union dues for 2024 with a 5% increase compared to the estimated figures for 2023.

2. Collection of trade union membership fees

The collection of trade union membership fees for 2024 is determined based on the actual number of trade union members (cross-referenced with the Organization Department of the Vietnam General Confederation of Labor) at grassroots trade unions, multiplied by the salary and allowances of the members as detailed in Chapter IV of the Vietnam General Confederation of Labor’s Decision No. 1908/QD-TLD of December 19, 2016. The average trade union membership fee collected from one member in 2024 at the provincial/city Confederations of Labor, Central-level sectoral and equivalent trade unions, and trade unions of corporations directly under the Vietnam General Confederation of Labor must not lower than the average fee collected from one union member according to the approved 2022 financial report.

Units are to prepare the estimated collection of trade union membership fees for 2024 with a 5% increase compared to the estimated figures for 2023.

III. PRINCIPLES OF DISTRIBUTING TRADE UNION FINANCIAL REVENUES AT VARIOUS TRADE UNION LEVELS AND DETERMINING THE BUDGET EXPENDITURE AT THE SUPERIOR TRADE UNIONS

1. Distribution of financial revenues between grassroots trade unions and superior trade unions

1.1. Grassroots trade unions

In 2024, grassroots trade unions are allowed to use 70% of the total trade union membership fees collected and 75% of the total trade union dues collected.

Any additional trade union membership fees collected beyond the amount prescribed in Decision No. 1908/QD-TLD and other revenue sources may be retained 100% for use by the grassroots trade unions.

1.2. Superior trade unions

The revenue from trade union membership fees and trade union dues to be used after distribution to grassroots trade unions is 30% of the total trade union membership fees collected and 25% of the total trade union dues collected,  distributed according to the provisions of Article 22 of the Vietnam General Confederation of Labor’s Decision No. 1908/QD-TLD of December 19, 2016: Distribution of financial revenues to superior trade unions. The General Confederation temporarily sets the distribution ratio for the 2% trade union dues collected from the production and business sector through the General Confederation's account to the various trade union levels. At the end of the financial year, the offsetting between the provincial/city Confederations of Labor, Central-level sectoral and equivalent trade unions and the directly superior trade unions to the grassroots trade unions will be decided by the Standing Committee of the provincial/city Confederations of Labor and central industry trade unions.

The General Confederation assigns the amounts to be remitted to the General Confederation, the amounts to be allocated for support, or the amounts for self-balancing at the provincial/city Confederations of Labor, Central-level sectoral and equivalent trade unions, and trade unions of corporations directly under the General Confederation in the 2024 budget estimates, according to Decision No. 1908/QD-TLD of December 19, 2016 promulgating the regulations on the management of trade union finances and assets, the collection and distribution of revenues, and the reward, penalty and remittance of trade union finances.

Any other revenue generated at a specific level may be used by that level.

2. Determining the budget estimates for expenditures at superior trade unions

The allocation of budget estimates for expenditures is carried out in compliance with the Laws on Trade Union, the State Budget, the Public Investment, and the law regulations of the State and the Vietnam General Confederation of Labor, specifically:

- Payment of salaries and allowances is estimated based on the staffing levels and workforce allocated in Section 2, Part I. Determine the wage fund based on salary grades, salary-related allowances, and contributions as required by regulations according to the basic salary of 1,800,000 VND/month (calculated for the full 12 months). The wage fund according to the staffing targets assigned for 2024 includes the wage fund for the actual number of staff present as of July 1, 2023, determined based on the salary grades, positions, salary-related allowances, and contributions as required by regulations and the wage fund for the positions not yet filled (but still within the total allocated staffing), calculated based on a salary of 1,800,000 VND/month and the grade 1 salary coefficient for A1 level civil servants, along with the applicable salary-related allowances and contributions as prescribed.

- Administrative management expenses: Administrative expenses are allocated according to the standards set by the government: Based on the government's regulations on the issuance of annual regular expenditure budget allocation norms for the State Budget: the maximum administrative management expenditure = the number of staff allocated by the Vietnam General Confederation of Labor or the Provincial/City Party Committee * the standard allocation amount as prescribed in the general government regulations, specifically:

+ For up to 100 staff members: Allocation standard of 70 million VND per staff member.

+ For the 101^st to 500^th staff members: Allocation standard of 65 million VND per staff member.

Localities where the Provincial/City People's Council has a separate mechanism that is higher than this regulation may apply according to the local mechanism.

- Expenses for directly caring for, protecting, and training trade union members and workers; Expenses for propagandizing to trade union members and workers; Expenses for activities of units that have not yet established grassroots trade unions; Other expenses based on the previous year's actual performance (according to the 2022 final accounts) and the assigned yearly tasks at the unit.

- Expenses for assigning tasks and placing orders with affiliated public service units to provide public services using trade union financial resources to support the activities of the trade union organization: Provincial and city Confederations of Labor; Central-level sectoral and equivalent Trade Unions; Trade Unions of Corporations under the General Confederation are pursuant to the Government’s Decree No. 32/2019/ND-CP of April 10, 2019; the Government’s Decree No. 60/2021/ND-CP of June 21, 2021; the Ministry of Finance’s Circular No. 56/2022/TT-BTC of September 16, 2022 and the General Confederation’s Official Dispatch No. 6912/TLD-TC of June 27, 2023 to guide affiliated public service units in preparing annual budget estimates for task assignments and placing orders with the provincial and city Confederations of Labor; Central-level sectoral and equivalent Trade Unions; Trade Unions of Corporations under the General Confederation shall appraise, consolidate, review, and approve within the 2024 budget estimates.

- Expenses for purchasing, maintaining, and regularly repairing assets balanced from the regular expenditure budget (balancing revenue and expenditure within the year for public service units).

- Expenses for capital construction investment, and purchasing trade union assets from the Investment Fund according to the medium-term public investment plan for the 2021-2025 period and the annual plan of the General Confederation.

- Expenses for the inspection and supervision activities of superior trade unions over inferior trade unions: Units are pursuant to the inspection and supervision plan to prepare expenditure estimates with balancing revenue and expenditure within the year. (The General Confederation will supplement the expenditure items, spending subjects, and spending norms in the Presidium of the General Confederation’s Decision No. 4291/QD-TLD of March 1, 2022 and provide specific guidance for all levels of trade unions in preparing the trade union financial expenditure estimates for 2024).

- Contingency expenses: 5% of the total regular expenditures.

3. Determining obligations, self-balancing, and allocation

Based on determining the annual expenditures as mentioned in section 2 above, if:

- The expenditure/revenue ratio is between 90% and 100%: the unit is self-balancing.

- The expenditure/revenue ratio is less than 90%: the unit is required to fulfill obligations to the General Confederation according to Article 22 of the Vietnam General Confederation of Labor’s Decision No. 1908/QD-TLD of December 19, 2016.

- The expenditure/revenue ratio is greater than 100%: the unit will receive support for the difference between expenditures and revenues.

For certain units in mountainous or island regions, decisions will be made by the Standing Committee based on specific conditions.

The General Confederation assigns the target for submitting coordination funding to the Provincial and City Confederations of Labor, Central-level sectoral and equivalent trade unions in the annual financial estimates for implementation and considers allocating coordination funding to eligible units according to regulations.

IV. ORGANIZATION OF IMPLEMENTATION

1. The General Confederation shall guide the preparation of the 2024 trade union financial budget according to the Presidium of the Vietnam General Confederation of Labor’s Decision No. 8086/QD-TLD of October 10, 2023. The consolidated budget estimates from the units shall be submitted to the Standing Committee of the Presidium for approval and notification to the units in January 2024.

2. The Standing Committee of the provincial and city confederations of labor; Central-level sectoral and equivalent trade unions; Trade unions of corporations directly under the Vietnam General Confederation of Labor shall base on the principles for preparing and allocating the 2024 trade union financial budget, the guidelines for preparing the 2024 trade union financial budget and the current financial regulations of the General Confederation to organize the implementation in accordance with the actual situation of each unit.