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1. Introduction
During salary negotiations, many candidates focus on the actual amount they receive each month without paying attention to salary structure. This leads to many people choosing Net salary without carefully considering the Gross salary.
However, receiving a Net salary carries various risks related to legal compliance, insurance, and personal income tax. According to a survey by HRDept.vn, over 60% of candidates only focus on Net salary without understanding how insurance contributions and taxes are deducted, resulting in long-term financial disadvantages.
This article will help you understand the risks of receiving Net salary so you can make the right decision to protect your rights.
2. Gross Salary Vs. Net Salary: Key Differences
📌 Gross salary is the total income an employee earns before deductions for social insurance (SI), health insurance (HI), unemployment insurance (UI), and personal income tax (PIT).
📌 Net salary is the actual amount the employee receives after all these deductions.
"Understanding salary calculations helps candidates avoid unnecessary financial risks and ensure long-term benefits." – HRDept.vn
For example, an employee with a Gross salary of 15 million VND/month will receive approximately 13.4 – 13.6 million VND after deducting insurance and taxes. However, if a company offers a Net salary of 13.5 million VND, candidates should carefully verify whether the company is truly covering all insurance contributions.
3. Risks Of Receiving Net Salary Instead Of Gross Salary
🔹 Risk #1: Loss Of Insurance Benefits
When a company pays a Net salary, they are responsible for handling the insurance contributions on behalf of the employee. However, not all companies fulfill this obligation properly. Some companies fail to pay or contribute at a lower rate than the actual salary, directly affecting:
✅ Retirement pension: Lower insurance contributions lead to lower pension payouts in the future.
✅ Maternity and sick leave benefits: Insufficient contributions may limit or eliminate entitlements.
✅ Unemployment benefits: Without proper unemployment insurance contributions, employees may not qualify for unemployment benefits.
"Choosing Gross salary ensures full social insurance benefits, securing your financial future." – HRDept.vn
🔹 Risk #2: Exposure To Tax Audits And Back Taxes
Personal income tax (PIT) is a legal obligation for employees. If a company does not properly declare and pay the required taxes when offering a Net salary, employees may face tax audits and be required to pay back taxes in the future.
For example, if an employee receives a Net salary of 20 million VND/month without knowing that the company failed to declare the appropriate tax amount, a future tax inspection could result in a back-tax payment along with late penalties.
🔹 Risk #3: Difficulties In Obtaining Bank Loans
Many banks require salary statements when processing personal loans or mortgage applications. If a company under-reports Gross salary, an employee’s official income appears lower, leading to:
✅ Challenges in loan approvals
✅ Lower credit limits than actual income would allow
✅ Missed opportunities to purchase property or vehicles
"Receiving Gross salary helps maintain a transparent financial record, making it easier to access loans or long-term investments." – HRDept.vn
4. Comparison Table: Gross Vs. Net Salary
| Criteria | Gross Salary | Net Salary |
|---|---|---|
| Income transparency | High | Can be misleading |
| Insurance & tax payments | Employee handles deductions | Company is responsible for payments |
| Risk of missing insurance contributions | None | Possible |
| Loan approval feasibility | Easier | More difficult |
| Long-term benefits | Fully covered | Potentially reduced |
"Opting for Gross salary allows better control over income, ensuring full insurance coverage and financial stability." – HRDept.vn
5. HRDept.vn Supports Transparent Job Searching
Choosing a Net salary may help candidates better visualize their take-home pay, but without transparency, they could face financial risks and lose insurance benefits.
HRDept.vn provides a platform where candidates can find jobs with clearly stated salaries, ensuring Gross salaries are publicly disclosed so candidates can accurately calculate their Net income.
"At HRDept.vn, candidates not only search for jobs for free but also receive interview participation fees, ensuring maximum benefits."
Why Choose HRDept.vn For Job Searching?
✅ Gross and Net salaries are clearly stated, making salary negotiation easier.
✅ Receive compensation for attending interviews, even if not hired.
✅ Access exclusive job postings, not available on other platforms.
✅ Get salary calculation support, avoiding mistakes when negotiating offers.
6. Conclusion
A lower Gross salary than Net salary may seem beneficial in the short term, but in the long run, financial risks and loss of insurance benefits are unavoidable. Therefore, employees should prioritize Gross salary to maintain better financial control and ensure long-term benefits.
📌 If you are looking for a job with transparent salary details and easy income calculation, visit HRDept.vn to connect with top-quality career opportunities!