Update on the policy for collecting trade union fees effective from June 1, 2025

Date: 2025.06.10

From June 1, 2025, trade union members and grassroots trade unions in administrative agencies and public service units fully funded by the state budget will no longer have 1% of their salary deducted for union fees. This marks a significant change in labor policy, with direct implications for both employees and employers.

To keep you informed with clarity and accuracy, Help All is here to share important updates in a clear and easy-to-implement format—ensuring smooth, lawful, and risk-free execution.

1. Official update on the Amended Trade Union Law 2024

The Amended Trade Union Law (2024), passed by the 15th National Assembly during its 7th session, represents a pivotal milestone in modernizing trade union operations in Vietnam. While the law takes effect from July 1, 2025, the specific provision regarding termination of union fee collection from non-members will apply earlier, starting from June 1, 2025.

The most notable change: removal of the mandatory 1% salary deduction for trade union members and grassroots unions in administrative agencies and public service units fully funded by the state budget. The new rule affirms that only trade union members are obligated to pay dues—in exchange for exclusive rights and benefits.

This aligns with the ILO’s principles of freedom of association, promoting voluntariness, transparency, and fairness in labor-union relations. Legal basis: Article 26, Law on Trade Union 2024

2. Difference between Trade Union Members and Non-members

One of the key aims of the 2024 amendment is to clarify the rights and obligations of employees in relation to trade unions. Differentiating between members and non-members is essential to properly apply the new law.

Who is a trade union member?

According to Articles 5 and 7 of the Law on Trade Union 2024, a trade union member is a worker who voluntarily joins the trade union at their workplace. As a member, they are entitled to:

– Representation and protection in legal labor relations (including disputes, wage negotiations, working conditions, etc.)

– Participation in union-led activities, such as cultural events, legal education, skills training, and vocational programs

– Welfare benefits such as support during illness, accidents, natural disasters, childbirth, or financial hardship

– Obligation to pay union dues as per current rules (typically 1% of monthly salary)

What about non-members?

Employees who do not join the union:

– Will no longer be subject to the 1% salary deduction starting June 1, 2025

– Will not receive legal representation from the union in case of disputes, disciplinary actions, or unlawful dismissal

– Will not receive union-specific welfare benefits

– May still participate in some public union activities (if any), but without priority rights

This distinction ensures voluntary participation and encourages trade unions to improve transparency and effectiveness, motivating workers to join by value—not by mandatory fees as in the past.

3. Impact of the New regulation

a) For employees:

– No more 1% fee if not a union member

– No union legal protection

– Greater clarity in choosing whether to join

b) For businesses:

– Must clearly categorize workers as members or non-members

– Adjust payroll systems to stop deductions for ineligible individuals

– Ensure internal communication to prevent complaints

c) For trade unions:

– Loss of revenue from non-members

– Urged to increase transparency, improve activity value, and shift from “mandatory” to “voluntary”

4. Practical implementation guidelines

a) For grassroots trade unions:

– Issue formal announcements

– Review and update the member list

– Communicate clearly and prepare membership forms for those interested

b) For businesses:

– Update payroll software and HR systems

– Ensure no salary deduction for non-members from June 2025

– Keep accurate and transparent union membership records

c) For employees:

– If not joining: Keep full salary, but no union support

– If joining: Deduct 1% salary, but gain full benefits and legal representation

– Recommended: Contact your workplace union for detailed guidance

5. Conclusion

Stopping the 1% union fee deduction for trade union members and grassroots unions in administrative agencies and public service units fully funded by the state budget from June 1, 2025 reflects a critical shift toward voluntariness, transparency, and fairness in labor-union relations.

Employees are now empowered to choose:
Join the union for protection and benefits—or not join, and avoid fee deductions. Businesses must update systems and cooperate with grassroots unions. Unions themselves must increase their value proposition to retain and attract members.

This is a turning point for all parties to modernize, professionalize, and contribute to a more equitable and sustainable working environment.

Help All is here to keep you informed with clear, practical updates on the latest labor regulations—so you can implement changes confidently, legally, and without risk.