1. Introduction
When negotiating salaries, many candidates often wonder about the difference between Gross salary and Net salary. One shows a higher figure before deductions, while the other represents the actual take-home amount. Is a higher Gross salary always better, or is Net salary the key factor?
According to a survey by HRDept.vn, over 65% of candidates prioritize Net salary since it reflects the actual amount they receive each month. However, if candidates only focus on Net salary without understanding Gross salary, they might struggle to comprehend deductions for insurance and taxes.
This article will help you understand the differences and optimize your income to ensure long-term benefits.
2. Gross Salary vs. Net Salary: The Basics
📌 Gross Salary is the total income before deducting insurance contributions and personal income tax.
📌 Net Salary is the actual amount an employee receives after all mandatory deductions.
"Understanding the difference between Gross and Net salary enables candidates to make smarter choices and negotiate better." – HRDept.vn
For example, an employee with a Gross salary of VND 15 million/month will receive a lower Net salary after 10.5% insurance contributions and personal income tax (if applicable), typically reducing their take-home pay by VND 1.5 – 2 million.
3. Comparing Gross And Net Salary
| Criteria | Gross Salary | Net Salary |
|---|---|---|
| Contract Amount | Higher | Lower |
| Insurance & Tax | Paid by the employee | Covered by the employer |
| Transparency | Clear, no conversion needed | Can lead to misunderstandings about actual earnings |
| Salary Negotiation | Easier to calculate | May be underestimated in negotiations |
| Insurance Benefits | Fully contributed, ensuring long-term benefits | May be lower if the company does not calculate correctly |
"Choosing Gross salary helps you better control your income and secure long-term insurance benefits." – HRDept.vn
4. When Should You Choose Gross Salary, And When Should You Choose Net Salary?
🔹 Choose Gross Salary When:
✅ You want full transparency on your insurance and tax contributions.
✅ You can manage and calculate your deductions independently.
✅ You work in an international environment where Gross salary is standard.
🔹 Choose Net Salary When:
✅ You prefer to know the exact amount you will receive each month.
✅ You don’t want to handle tax and insurance calculations.
✅ You work for a company that includes insurance in its benefits package.
"Whether you choose Gross or Net salary, understanding how they are calculated is key to protecting your financial interests." – HRDept.vn
5. How To Accurately Convert Between Gross And Net Salary
🔹 Converting Gross Salary To Net Salary:
🔹 Converting Net Salary To Gross Salary:
Example: A candidate wants a Net salary of VND 10 million/month. When converted to Gross salary, this amount may range from VND 11.5 – 12 million, depending on personal income tax.
"Knowing how to convert between Gross and Net salary ensures candidates don’t lose out in salary negotiations." – HRDept.vn
6. How HRDept.vn Supports Transparent Salary Negotiation
Although understanding Gross and Net salary is crucial, many candidates still face challenges when negotiating with employers.
HRDept.vn is a platform that helps candidates access high-quality job opportunities with clear salary information. Most notably, candidates receive a payment for attending interviews, even if they are not hired.
"At HRDept.vn, candidates not only find jobs for free but also maximize their benefits through transparent and public salary information."
Why Choose HRDept.vn For Job Hunting?
✅ Clear Gross and Net salary information – making it easier for candidates to compare and negotiate.
✅ Get paid for interviews – easing financial pressure during job searches.
✅ Exclusive job listings – not available on other platforms.
✅ Salary calculation support – ensuring candidates’ rights are protected.
7. Conclusion
While Gross salary may be higher, Net salary determines what you actually receive, so candidates must understand the calculations to avoid financial losses. If possible, choosing Gross salary allows for greater transparency in insurance, taxes, and long-term benefits.
📌 Looking for job opportunities with clear and transparent salary details? Visit HRDept.vn now to explore the best career options!