VI The accounting treatment for trade union fund expenditure at an entity is specifically stipulated in Part B, Appendix II of Circular 99/2025/TT-BTC regarding Account 338 – Other payables. Let’s explore this further with Pham Consult!
How is trade union fund expenditure accounted for at an entity under Circular 99?
Trade union fund expenditure at an entity is accounted for under Circular 99 as follows:
Debit Account 338 – Other payables (3382)
Credit Accounts 111, 112, etc.
Part B, Appendix II of Circular 99/2025/TT-BTC stipulates Account 338 – Other payables as follows:
- Accounting methods for certain key economic transactions
3.1. Cases of discovering surplus assets
- a) For surplus inventory or fixed assets discovered during stocktaking where the cause has been identified, accounting entries shall be made based on the cause of the surplus (e.g., errors in weighing, measuring, counting, or failure to record in the books). If a surplus fixed asset discovered during stocktaking is immediately identified as belonging to another enterprise, the owner enterprise must be notified immediately. If the owner enterprise cannot be identified, the superior agency and the finance agency at the same level (in the case of state-owned enterprises) must be notified immediately for resolution. In this case, the enterprise shall not record an increase in fixed assets nor record the amount on the Credit side of Account 338; instead, it shall open a detailed tracking log for the fixed asset and disclose the information in the Notes to the Financial Statements.
3.2. Accounting for Social Insurance (SI), Health Insurance (HI), Unemployment Insurance (UI), and Trade Union Fees
– Upon accrual/allocation of SI, HI, UI, and Trade Union fees:
Debit Accounts 622, 623, 627, 641, 642, etc. (amounts charged to production and business expenses)
Debit Account 334 – Payables to employees (amounts deducted from employees’ salaries)
Credit Account 338 – Other payables (sub-accounts 3382, 3383, 3384, 3386).
– Upon payment of SI, HI, UI, and Trade Union fees:
Debit Account 338 – Other payables (sub-accounts 3382, 3383, 3384, 3386)
Credit Accounts 111, 112, etc.
– For SI benefits payable to employees due to sickness, maternity leave, etc.:
Debit Account 338 – Other payables (sub-account 3383)
Credit Account 334 – Payables to employees.
– For expenditure of Trade Union funds at the entity:
Debit Account 338 – Other payables (sub-account 3382)
Credit Accounts 111, 112, etc.
– For reimbursement of Trade Union fund expenditures that exceeded the allocated budget (upon receipt of funds):
Debit Accounts 111, 112
Credit Account 338 – Other payables (sub-account 3382).
What is the deadline for remitting Trade Union fees? The legal basis set forth in Clause 2, Article 4 of Decree 105/2026/NĐ-CP specifies the current deadlines for paying trade union funds as follows:
Methods and deadlines for paying trade union funds
- Deadlines for paying trade union funds
- a) The deadline for paying trade union funds is no later than the last day of the following month for agencies, organizations, units, enterprises, cooperatives, and unions of cooperatives that pay trade union funds on a monthly basis as prescribed in Clause 1 of this Article.
- b) The deadline for paying trade union funds is no later than the last day of the month immediately following the cycle for organizations and enterprises in agriculture, forestry, fishery, and salt production that pay wages based on production and business cycles and pay trade union funds on a quarterly (every three months) basis as prescribed in Point b, Clause 1 of this Article.
Accordingly, the deadlines for paying trade union funds effective from May 16, 2026, are stipulated as follows:
– The deadline for paying trade union funds is no later than the last day of the following month for agencies, organizations, units, enterprises, cooperatives, and unions of cooperatives that pay trade union funds on a monthly basis, as specified above.
– The deadline for paying trade union funds is no later than the last day of the month immediately following the cycle for organizations and enterprises in agriculture, forestry, fishery, and salt production that pay wages based on production and business cycles and pay trade union funds on a quarterly (every three months) basis, as specified in Point b, Clause 1, Article 4 of Decree 105/2026/NĐ-CP.
Which method do enterprises use to pay trade union funds? Pursuant to Clause 1, Article 4 of Decree 105/2026/NĐ-CP, the methods for paying trade union fees in 2026 are stipulated as follows:
– Payment of trade union fees on a monthly basis, coinciding with the time of compulsory social insurance payments for employees, applies to:
Public service providers that do not receive 100% of their payroll funding from the state budget (specifically: public service providers that self-finance both recurrent and investment expenditures, and public service providers that self-finance recurrent expenditures).
Public service providers that self-finance a portion of recurrent expenditures.
Foreign agencies, organizations, and international organizations operating within the territory of Vietnam that are involved in trade union organization and activities, as well as foreign executive offices under business cooperation contracts in Vietnam that employ Vietnamese workers.
Other agencies, organizations, units, enterprises, cooperatives, and unions of cooperatives.
– Payment of trade union fees on a monthly or quarterly (every three months) basis, coinciding with the time of compulsory social insurance payments for employees—subject to registration with the trade union organization—applies to:
Organizations and enterprises in the agriculture, forestry, fishery, and salt production sectors that pay wages based on production or business cycles.
