During the interview process with many candidates at HRchannels, we understand that many candidates still find the concept unfamiliar. What are their differences ? What salary is the most advantageous? Refer to the article below to help you gain more knowledge when negotiating salary with employers.

1. What are gross salary and net salary?

Gross salary

It is understood as the total income, taxes and fees included, received by the employee. Including actual salary and expenses such as social insurance, health insurance, unemployment insurance…

For example: The company offers you a salary of 10 million VND, which means that this salary is not covered by the prescribed insurance of 10.5% (8% social insurance, 1.5% d health insurance and 1% unemployment insurance). This means that the food received = 10,000,000 – 10.5% = 8,950,000 VND.

Net salary

This is the total income an employee receives after deducting social insurance, health insurance and unemployment insurance contributions.

For example: The company also offers you a salary of 10 million VND, which means you will receive the full 10 million without having to pay any social insurance, health insurance or unemployment insurance fees. Because the company paid the fee for you according to state regulations.

2. Gross salary or net salary?

Being able to maintain a salary without having to pay additional wages will make workers more likely to want to receive take-home pay. But in reality, these two salaries are not very different, because the employer will calculate the salaries so that the Net and Gross salaries are equivalent.

But we still advise candidates to choose a gross salary as this will help you be more proactive in controlling your finances. When the contract is for gross salary, the law specifies the terms and conditions

The responsibility of each party to pay social insurance, health insurance, unemployment insurance, union and personal income tax. You take the gross salary – the expenses you have to pay = actual monthly salary. In the event of problems related to maternity, work accidents, loss of working capacity or unemployment, you will receive benefits based on the gross salary that you contribute and that your company undertakes to pay.

Additionally, according to HRchannels’ senior recruiting experience, we recommend going through headhunting service companies like HRchannels Group to receive useful advice during salary negotiations with employers.

Hopefully, the information shared below will help you fully understand the issue of salary calculation to easily negotiate with employers.

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