Read More: Receiving Net Salary: Who Pays for Insurance and Personal Income Tax?
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1. Introduction
During the recruitment process, most companies disclose gross salary instead of net salary. This often raises a question among candidates: Why don’t employers provide net salary, making it easier for candidates to understand their actual income?
In reality, publishing gross salary not only ensures transparency in payroll, but also helps businesses comply with labor and insurance regulations. According to a survey by HRDept.vn, 85% of employers in Vietnam prefer to display gross salary rather than net salary to maintain clarity in payroll costs and employee benefits.
This article will help you understand why companies prefer gross salary and why candidates should also negotiate based on gross salary rather than net salary.
2. What Is Gross Salary? What Is Net Salary?
📌 Gross salary: The total income an employer pays to an employee before deducting social insurance (SI), health insurance (HI), unemployment insurance (UI), and personal income tax (PIT).
📌 Net salary: The actual amount an employee receives after all mandatory deductions.
"Using gross salary ensures payroll transparency and protects employees' rights." – HRDept.vn
For example, an employee with a gross salary of 20 million VND per month will receive around 17.8 – 18 million VND per month, depending on their insurance and tax deductions.
3. Why Do Employers Choose Gross Salary?
🔹 1. Ensuring Transparency And Fairness
Publishing gross salary allows both employers and candidates to have a common reference point during negotiations. By offering gross salary, employers:
✅ Enable candidates to calculate their actual income without confusion over different payment structures.
✅ Avoid disputes over take-home pay, as each candidate may have different tax and insurance obligations.
✅ Ensure compliance with labor laws, avoiding risks of tax arrears or administrative penalties.
"Gross salary helps both employers and candidates avoid legal risks and ensures salary transparency." – HRDept.vn
🔹 2. Compliance With Labor And Tax Regulations
According to Vietnam's Labor Law, salaries must be clearly stated, including mandatory insurance contributions and personal income tax. Therefore, if a company only provides net salary without explaining how gross is converted to net, it may violate labor regulations.
Moreover, disclosing gross salary makes it easier for businesses to report taxes and insurance contributions, preventing legal complications.
🔹 3. Helping Candidates Understand Their Insurance Benefits
If an employer only announces net salary, candidates may not be aware of their social, health, and unemployment insurance contributions. This can lead to risks such as:
❌ Uncertainty about pension benefits, maternity leave, and unemployment allowances.
❌ Difficulty verifying whether the company is properly contributing to insurance funds.
"Choosing gross salary allows candidates to better manage their insurance contributions and long-term benefits." – HRDept.vn
4. Comparison Table: Gross Salary vs. Net Salary
| Criteria | Gross Salary | Net Salary |
|---|---|---|
| Stated in contract | Yes | No |
| Transparency | High | May cause confusion |
| Easier income calculation | Candidates can estimate | Depends on employer |
| Control over insurance & tax | Easy to track | May be uncertain if employer doesn't contribute properly |
| Legal risks | None | Possible issues if not declared correctly |
"Choosing gross salary gives candidates a clearer view of their actual income and insurance benefits." – HRDept.vn
5. HRDept.vn Supports Transparent Job Searching
To help candidates understand their actual earnings, HRDept.vn always clearly states both gross and net salaries in job postings, making salary negotiations easier and more accurate.
"At HRDept.vn, candidates not only find jobs for free but also receive interview attendance fees, ensuring maximum benefits."
Why Choose HRDept.vn For Job Searching?
✅ Gross and net salaries are clearly stated, making comparisons and negotiations easier.
✅ Receive payment for attending interviews, even if not selected.
✅ Access exclusive job opportunities not available on other platforms.
✅ Get salary calculation support, avoiding confusion during negotiations.
6. Conclusion
Employers prefer gross salary over net salary to ensure transparency, help candidates calculate actual earnings, manage insurance contributions, and avoid legal risks.
If you want a transparent job search experience and an easy way to calculate your income, visit HRDept.vn to explore quality career opportunities!