Trade union fund deduction ratio

The deduction rate for union funds is 2%.

Enterprises, institutions, and agencies that have established trade union organizations allocate 2% of the total monthly wages of all employees to the trade union as funds. Trade union members should pay five thousandths of their monthly basic income in membership fees to the trade union organization every month. As long as the company pays "wages" instead of bonuses, allowances or subsidies, the membership dues should be calculated and paid based on the salary income earned by the individual. All membership dues paid by members are retained at the grassroots level and used for union activities, and do not need to be handed over.

Trade unions can use various funds raised by themselves to organize employee tourism, employee consumer cooperatives and other economic undertakings that serve employees. When trade union funds are insufficient, the subsidies provided by the people's government to trade unions at the same level are a supplementary source of trade union funds. It is disposable and dedicated.

Characteristics of trade union funds

1. Mandatory: Administrative allocation of trade union funds is stipulated in the Trade Union Law. The Trade Union Law, like other laws, has the same legal effect. , must be executed. Failure to enforce it is illegal and must be enforced.

2. Free of charge: The administrative aspects of enterprises, institutions, and government agencies allocate funds to trade unions free of charge. Allocating funds to trade unions is necessary for the state to support trade unions in performing their social functions, and therefore does not need to be repaid.

3. Fixedness: The administration allocates 2% of the total wages of all employees to the labor union every month. This is fixed by law and has long-term legal effect.

The administrative aspects of each grassroots unit should allocate 2% of the total wages of all employees in the previous month to the union before the 15th of each month for the union funds for the current month. After receiving the union funds, the trade union shall issue a "special receipt for the payment of trade union funds" to the administrative unit that pays the money, and the tax department will deduct it before corporate income tax accordingly.

Reference for the above content: Baidu Encyclopedia - Trade Union Law of the People’s Republic of China and the People’s Republic of China