CHANGE IN THE METHOD OF PAYING TRADE UNION FUNDS IN HO CHI MINH CITY (“HCMC”) FROM 01 SEPTEMBER 2026

Pursuant to Official Letter No. 1363/LĐLĐ dated 19 August 2026 of the HCMC Labour Federation, from 01 September 2026, production and business units in HCMC shall pay the 2% trade union funds via the centralised collection account of the Vietnam General Confederation of Labour, in place of the account of the HCMC Labour Federation.

Enterprises should note the following:

• The contribution rate remains unchanged: it continues to be 2% of the salary fund used as the basis for compulsory social insurance contributions under Decree 105/2026/NĐ-CP.
• Change of account and payment method: enterprises must register an identification account and make payment through one of the designated banks: VietinBank, Agribank, BIDV or Vietcombank.
• Payment deadline: for monthly payment, no later than the last day of the following month; for payment on a 3-month or 6-month cycle, no later than the last day of the month following the end of the cycle.
• Sanctions: from 10 September 2026, violations relating to trade union fund contributions shall be handled under Decree 283/2026/NĐ-CP, in place of Decree 12/2022/NĐ-CP.

Enterprises in HCMC should check the status of their identification account, update the centralised collection account information and review their payment procedures before the next payment period so as to ensure that trade union fund obligations are recorded fully and on a timely basis.