Government issues Decree 105/2026/NĐ-CP: What should businesses note about trade union funding?

Effective from May 16, 2026, Decree 105/2026/NĐ-CP on trade union finance officially takes effect, clearly stipulating the obligation to pay trade union funding for labor-using units.

1. Entities required to pay trade union funding

• All types of enterprises (including FDI enterprises)
• Public service units not fully funded by the state budget
• Cooperatives and unions of cooperatives
• Organizations and units employing workers
• Workers’ organizations within enterprises

➡️ Enterprises with employees participating in social insurance are obliged to pay trade union funding.

2. Rate of trade union funding

• Equal to 2% of the salary fund used for compulsory social insurance contributions
• Calculated on the total salary of employees subject to social insurance contributions

➡️ The contribution rate remains unchanged compared to previous regulations.

3. Method and deadline for payment

• Paid monthly, at the same time as social insurance contributions
• Deadline: the last day of the following month
  👉 Certain special industries may register to pay on a quarterly cycle (every 3 months).

4. Important notes

• Late payment: underpayment or payment after the deadline
• Non-payment: more than 60 days overdue without payment
• Special cases:
  • Exemption: enterprises that dissolve or go bankrupt
  • Reduction: up to 20% if facing difficulties
  • Suspension: up to 12 months