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JobOKO has developed the Online Gross to Net Salary Calculation Software as a tool specifically for accountants, providing accurate and easy salary calculations. Join Mytour in exploring this JobOKO software.
How to calculate Personal Income Tax based on Gross Salary
1. What is Gross Salary?
Gross Salary (or commonly referred to as gross pay or cross salary) is the total amount an employee receives before deductions such as taxes and other withholdings, like unemployment insurance and social security. Your actual take-home pay is often lower than this Gross Salary due to deductions for insurance and income tax. This figure reflects the amount the employer agrees to pay before these deductions.
2. What is Net Salary?
Net Salary (also known as net pay) is the amount you receive after deducting items such as insurance premiums and income tax. Therefore, Net Salary is lower than Gross Salary.
Understanding the concepts of Net and Gross salary allows you to easily and quickly convert between Gross to Net and vice versa, ensuring the most accurate results.
3. Formula for Calculating Net and Gross Salary
As defined above, Gross and Net salaries are interconnected and depend on each other. Specifically, according to the following formula:
Net Salary = Gross Salary - (Social Insurance + Health Insurance + Unemployment Insurance + Personal Income Tax)
Where:
- BHXH: Social Insurance.
- BHYT: Health Insurance.
- BHTN: Unemployment Insurance.
- Personal Income Tax: PIT.
Therefore, converting Gross to Net salary and vice versa is straightforward if you know the amounts for social insurance, health insurance, and unemployment insurance.
Note: Individuals reaching the state-regulated salary threshold are required to pay Personal Income Tax. If the minimum salary is 11 million VND per month after deductions and without dependents, tax must be paid to the government.
- See more: Online tool for calculating unemployment insurance benefits
4. Software for Gross to Net Salary Calculation and Vice Versa
Based on the formula for calculating Gross to Net and vice versa mentioned above, JobOKO has designed and developed software for Gross to Net salary calculations. This tool enables you to easily, accurately, and swiftly convert Net to Gross and vice versa.
Utilize the software for Gross to Net Salary calculations:
https://vn.joboko.com/tinh-luong-gross-net
Simply input the amount, and the software will instantly provide you with the results. Not only that, but it also provides a detailed breakdown of the amount that employers pay for you, helping you understand all the figures and the actual salary you receive. Compliant with the law regarding deductions for personal circumstances, dependents, and personal income tax, the software delivers corresponding and highly accurate results. Therefore, you can use this software with complete confidence.
Example: If your agreed-upon salary is 10,450,000 VND, just input that amount into the 'Income' field and press Gross -> Net. Within 1 second, you will receive the appropriate Net salary result below.
If your actual received salary is 10,450,000 VND, and you want to see the Gross salary, input the amount into the 'Income' field and press Net -> Gross . The result will be displayed immediately below.
5. Why is it necessary to distinguish between Net and Gross salary?
Distinguishing between Net and Gross salary brings various benefits to both employees and employers:
With the insights shared here, you now have a better understanding of salary calculation software for Gross to Net and vice versa. Based on your actual received salary and benefits, you can quickly and accurately calculate Gross and Net salaries. This helps you determine the suitable Net or Gross salary for your situation.
