DECREE 105/2026/NĐ-CP GUIDANCE ON THE IMPLEMENTATION OF CERTAIN PROVISIONS OF THE TRADE UNION LAW REGARDING TRADE UNION FINANCE

On March 31, 2026, the Government issued Decree No. 105/2026/NĐ-CP (“Decree 105”) detailing and guiding the implementation of certain provisions of the Trade Union Law relating to trade union finance, based on the proposal of the Ministry of Finance. The Decree takes effect from May 16, 2026.

Decree 105 specifically sets out cases where enterprises, cooperatives, and unions of cooperatives are entitled to exemptions and reductions in trade union funding. In particular:

Exemption from Trade Union Funding Contributions

• Enterprises, cooperatives, and unions of cooperatives that are dissolved in accordance with regulations; or
• Enterprises, cooperatives, and unions of cooperatives granted exemption by the provincial Labor Federation for unpaid trade union funding when the union participates in debt settlement plans (including trade union funding), as delegated by the Vietnam General Confederation of Labor.

Reduction of Trade Union Funding Contributions

Enterprises, cooperatives, and unions of cooperatives may be considered for a reduction if:

• The period of suspension of trade union funding contributions has ended;
• And they continue to reduce labor on a large scale, specifically:

– From 30% of employees or at least 30 employees (for units with fewer than 200 employees);

– At least 50 employees (for units with 200 to 1,000 employees);

• At least 100 employees (for units with more than 1,000 employees).
• The maximum reduction: 20% of the contribution level prescribed by the Trade Union Law.

Duration of reduction: calculated monthly and not exceeding 6 months. After this period, the unit must resume contributions at the normal level.