Trade union funds are calculated and extracted according to 2% of the total wages of employees, of which 40% is turned over to the Federation of Trade Unions at or above the county level, or withheld by the tax authorities entrusted by the Federation of Trade Unions at or above the county level, and 60% is reserved for the use of trade unions in this unit. Use of trade union funds: expenses for organizing members to carry out collective activities and subsidies for members with special difficulties. For example, the expenses of group activities such as member activity days, outings, parties, visits, movies, dances, and gardens are paid quarterly and reported on the local tax website.

Legal basis:

People's Republic of China (PRC) Trade Union Law

Article 44 Trade unions shall establish a system of examination and supervision of budgets, final accounts and funds according to the principle of independence of funds.

Trade unions at all levels shall establish funds review committees.

The income and expenditure of trade union funds at all levels shall be reviewed by the trade union funds review committee at the same level, and shall be reported to the general meeting of members or the general meeting of members on a regular basis and subject to supervision. The trade union general assembly or the general assembly has the right to put forward opinions on the use of funds.

The use of trade union funds is subject to state supervision according to law.

Forty-fifth people's governments at all levels and enterprises, institutions and organs shall provide necessary facilities and places for the work and activities of trade unions.