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1. Introduction

Understanding how to calculate Gross and Net salary not only helps employees protect their rights but also ensures transparency in payroll management for businesses. However, many job seekers still confuse these two terms, leading to unnecessary disadvantages during salary negotiations.

HRDept.vn recommends that candidates fully understand salary calculations to avoid losses and ensure that their income matches their efforts.

According to a survey by HRDept.vn, approximately 70% of job seekers only focus on Net salary without understanding how it is derived from Gross salary, making it difficult to determine their actual earnings. This article will help you accurately calculate Gross and Net salaries.

2. What Is Gross Salary? What Is Net Salary?

📌 Gross salary is the total income of an employee before deductions for insurance and personal income tax (if applicable).

📌 Net salary is the actual amount the employee receives after deducting insurance contributions and personal income tax.

"Understanding salary structure helps candidates negotiate more effectively and avoid unnecessary risks." – HRDept.vn

3. Formulas For Converting Gross To Net Salary And Vice Versa

🔹 From Gross Salary To Net Salary

Net salary is calculated using the formula:

Net Salary = Gross Salary - (Social Insurance + Health Insurance + Unemployment Insurance + Personal Income Tax)

$NetSalary$ $=$ $GrossSalary$ $-$ $($ $SocialInsurance$ $+$ $HealthInsurance$ $+$ $UnemploymentInsurance$ $+$ $PersonalIncomeTax$ $)$

Where:

Social Insurance (SI): 8% of Gross Salary
Health Insurance (HI): 1.5% of Gross Salary
Unemployment Insurance (UI): 1% of Gross Salary
Personal Income Tax (PIT): Calculated based on progressive tax rates (detailed below)

🔹 From Net Salary To Gross Salary

Gross salary is calculated using the formula:

Gross Salary = \frac{Net Salary}{1 - (8\% + 1.5\% + 1\% + PIT)}

$GrossSalary$ $=$ $1$ $-$ $($ $8%$ $+$ $1.5%$ $+$ $1%$ $+$ $PIT$ $)$ $NetSalary$ $$

Since personal income tax is calculated progressively, converting Net to Gross is more complex.

4. Comparison Table: Gross Salary Vs. Net Salary

Criteria	Gross Salary	Net Salary
Contract Amount	Higher	Lower
Insurance & Tax	Employee Pays	Employer Pays (Included in Costs)
Transparency	Clear, No Conversion Needed	Can Be Misleading About Actual Income
Salary Negotiation	Easier to Calculate	Can Be Challenging During Negotiation

"Choosing Gross salary gives candidates better control over their contributions and long-term insurance benefits." – HRDept.vn

5. Updated Personal Income Tax (PIT) Calculation

PIT is calculated based on the progressive tax bracket system as follows:

Tax Bracket	Taxable Income Per Month (Million VND)	Tax Rate
1	Up to 5 million	5%
2	Over 5 – 10 million	10%
3	Over 10 – 18 million	15%
4	Over 18 – 32 million	20%
5	Over 32 – 52 million	25%
6	Over 52 – 80 million	30%
7	Over 80 million	35%

Example Calculation:

A worker earns a Gross salary of 20 million VND per month. After deducting insurance and applying a family deduction of 11 million VND, the taxable income is:

20,000,000 - 11,000,000 = 9,000,000 \text{ VND}

$20$ $,$ $000$ $,$ $000$ $-$ $11$ $,$ $000$ $,$ $000$ $=$ $9$ $,$ $000$ $,$ $000$ $VND$

Since 9 million falls within the 10% tax bracket, the PIT payable is:

9,000,000 \times 10\% = 900,000 \text{ VND}

$9$ $,$ $000$ $,$ $000$ $\times$ $10%$ $=$ $900$ $,$ $000$ $VND$

6. HRDept.vn Supports Transparent Job Searching

Many candidates face difficulties when negotiating salaries, especially for highly skilled positions. HRDept.vn provides a platform that connects job seekers with employers transparently and fairly.

"At HRDept.vn, candidates not only find jobs for free but also receive interview compensation, ensuring maximum benefits."

Why Choose HRDept.vn For Job Searching?

✅ Clearly displays Gross and Net salary, making comparison and negotiation easier.
✅ Earn money for attending interviews, even if not selected.
✅ Access exclusive job opportunities unavailable on other platforms.
✅ Accurate salary calculation assistance, preventing misunderstandings during negotiations.

7. Conclusion

Understanding the differences between Gross and Net salaries is crucial for every job seeker before signing an employment contract. Choosing Gross salary allows better control over income, insurance, and long-term benefits.

📌 If you want a transparent job search experience with clear income calculations, visit HRDept.vn to connect with top career opportunities!

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How To Accurately Calculate Gross And Net Salary According To New Regulations