Salary is a key factor to decide the working performance of employees is also one of the major expenses of the business. Applying employee wage calculation accuracy, transparency in accordance with legal regulations not only ensure the benefits for the workers but also help enterprises manage the budget effectively and limit legal risks.
Nắm rõ công thức tính lương, từ hình thức trả lương theo thời gian, sản phẩm cho đến khoán việc hay doanh thu sẽ giúp doanh nghiệp vừa tuân thủ pháp luật, vừa tối ưu nguồn lực tài chính. Quan trọng hơn, một cơ chế trả lương hợp lý tạo nền tảng cho sự gắn kết lâu dài giữa nhân viên và tổ chức từ đó thúc đẩy năng suất gia tăng lợi thế cạnh tranh.
The same Lac Viet Computing find out details about the calculation of wages in the enterprise today.
1. How to calculate the salary is what?
How to calculate wage is the set of methods, formulas businesses use to determine the amount that each employee is received, based on the results of work, duration of labour and the policy has been agreed in the contract. This is critical in payroll management, decision directly to the public by the internal competitiveness of remuneration than the market.
If “how to calculate salary” focus on the method of determining the specific numbers of each pay period, the “wage policy” to imply the entire orientation, the wages of the business includes basic salary, allowances, bonuses and benefits.
The construction of a payroll reasonable to help businesses achieve 3 goals:
- Ensure internal: People do more, enjoy more, encourage work performance.
- Competition on the labor market: attract retain talent by salary and attractive.
- Legal compliance: to Avoid the risk of penalties due to violation of regulations on pay, insurance/tax.
2. The legal basis about how to calculate salary in Vietnam
How to calculate salary of business in Vietnam is governed by various legal documents, the most important of which is The Labour code 2019, Decree 145/2020/ND-CP and circular guide. These texts clearly stated principles, forms, pay, payment term, the obligations of the employer.
According to Article 94 of The Labor code 2019, businesses have to pay salary directly, fully deadlines for workers, not be forced or delayed no reason. In addition, Article 90 also confirms the level of wages are not lower than minimum wages issued by The government.
Decree 145/2020/ND-CP additional details about the construction of stairs, payroll, taxonomies, labor, and requires businesses to publicly these regulations to ensure transparency helps to limit labor disputes, strengthen the confidence of employees.
From the perspective of practicality, understanding the legal basis not only help businesses avoid the risk of sanctions (fines can be up to 100 million for violating regulations on paid according to the Decree 12/2022/ND-CP), but also create a platform to set the formula for calculating the salary transparent, easy to understand easy to apply for each group of employees.
Source reference:
3. The factors that affect the calculation of salary
Việc xác định mức lương thực trả cho nhân viên không chỉ dựa vào một công thức cố định mà còn phụ thuộc vào nhiều yếu tố khác nhau. Hiểu rõ các yếu tố này giúp doanh nghiệp xây dựng cơ chế trả lương phù hợp, vừa đáp ứng nhu cầu người lao động, vừa đảm bảo hiệu quả tài chính.
Type of contract labor
- Contract full-time regular apply how to calculate salary according to months, more stable and associated with the account, insurance, benefits in full.
- Contract part-time or seasonal, usually paid by the hour or by day work, flexible but less allowance than.
- Contract exchange applying for project or particular task, fastened with the progress and results of work.
Form of payroll
- From time to time: Based on the number of days/hours actually worked, commonly applied for office blocks.
- According to the product: Salary depends on the quantity and quality of the finished product, in accordance with the manufacturing enterprise.
- According to the revenue/results: Tied to the rate of % of revenue or profits, often used for business employees.
Allowance benefits
- Includes high level health care, gasoline, telephone, accommodation, toxic...
- According to the survey VietnamWorks 2024, 78% of applicants considered to allowances and benefits are important factors when decided to stick with the company long term.
The mandatory deductions
- SOCIAL insurance (8% from employees, 17.5% of the business), health INSURANCE (1,5% + 3%), UNEMPLOYMENT insurance (1% + 1%) according to the provisions of the Law on social insurance and Employment Law.
- Personal income tax according to the progressive tax each section.
Bonus policy roses
- Businesses often additional account performance bonuses, or commissions to encourage employees, especially in the areas of sales, brokerage, service.
- This direct impact on motivation and retain talent.
When fully incorporated elements on business will get how to calculate employee wages, flexible, fair in accordance with the peculiarities of operation thereby improving effective personnel administration, optimal wage costs.
4. Formulas & How to calculate salary popularity in business
In fact, every business will choose the method, recipe calculator, different salaries, depending on the particular industry, personnel structure and management objective. Choosing the right method not only ensures the accuracy, transparency but also contribute to improving motivation and retain talent optimal staffing costs.
4.1. How to calculate salary according to the time
This method is paid based on the number of days or hours actually worked of employees compared to the working time standards in months.
Formula:
Food get = (Salary / Number of days the standard) × Number of days the actual
For example: An employee with monthly salary 15,000,000, the number of days the standard in January is 26 go to work 24 days. Salary = (15.000.000 / 26) × 24 ≈ 13.846.000 copper (not including allowances, bonuses or deductions).
Advantages: Easy to calculate, suitable for the office or position requires working time fixed.
Cons: Difficult to accurately reflect the performance if employees work superior or inferior to expectations.
Enterprise value received: simplify the payroll process, easily apply in hr software, time, and ensure clarity for staff when comparing the pay table.
4.2. How to calculate salary according to the product
This method attaches income with the number or quality of products and services that the employee complete.
- Formula:
Salary actually received = Number of finished product × Unit price of the product
For example, workers may have the unit price 20,000/products, complete 600 products in January. Salary = 600 × 20.000 = 12.000.000 vnd.
Pros: encourages increased productivity, suitable for business, production machining.
Cons: income can fluctuate strongly when the workload decreases or the product quality does not meet the requirements.
Enterprise value received: Increase the ability to control costs, ensure pay is based on actual results, thus promoting labor productivity.
4.3. How to calculate salary exchange
Business paid a salary according to a level of exchange fixed for the entire job or project, not directly dependent on the duration of employment.
Formula:
Food get = The exchange × Percentage of completion of work
For example: Employees are exchange 50,000,000 for a project, completing 90% of the volume of work. Salary = 50.000.000 × 90% = 45.000.000 copper.
Advantages: Consistent with the results clear, help control the project budget.
Cons: Need evaluation criteria completed work transparent to avoid disputes.
Enterprise value received: saves time management encourages employees completed on schedule and ensure the quality of work.
4.4. How to calculate salary according to the revenue/commissions
This method is often applied to sales staff, brokers or consultants, in which wage fastened with sales or contract value.
Recipe: food get = Salary plus (revenue × % commission)
For example: Salary, hardcore 8,000,000 revenue month reached vnd 500,000,000, rose 2%. Salary = 8.000.000 + (500.000.000 × 2%) = 18.000.000 copper.
Pros: motivation, strong sales, mounting income with work efficiency.
Cons: income volatility, easy to apply pressure if the revenue is not stable.
Enterprise value get: optimized cost base salary, just to pay more when there's actual results, at the same time motivate active competition between the sales staff.
5. The account mandatory deducted from salary
When payroll employees, in addition to determining the income-based formula for calculating the appropriate wages, businesses still have to make pay the amounts required under the provisions of the law. This is supposed parallel of all workers (EMPLOYEES) and the employer (ER) aims to ensure the rights of social security for employees, compliance with the law.
Social insurance (SI)
- EMPLOYEES close: 8% salary SOCIAL insurance contribution.
- ER contributes: 17.5% of salary, SOCIAL insurance contribution.
- Purpose: Ensure the rights of pension, sickness, maternity, occupational accidents.
Health insurance (health INSURANCE)
- EMPLOYEES packing: 1,5%.
- ER contributes: 3%.
- Purpose: Assist with the cost of medical treatment when the EMPLOYEE is sick.
Unemployment insurance (UI)
- EMPLOYEES close: 1%.
- ER close: 1%.
- Purpose: financial assistance, vocational training when EMPLOYEES losing their jobs.
Personal income tax (PIT)
- Apply according to the tariffs the partially progressive, from 5% to 35% depending on the level of taxable income.
- Deductions downloads: circumstance (11 million/month for myself and 4.4 million vnd/month for each dependent).
Illustrative example: An employee has a salary of SI is 20,000,000:
- Quote from wage EMPLOYEE: SOCIAL insurance (1.600.000) + health INSURANCE (300.000) + UI (200.000) = 2.100.000 copper.
- Business to close more: SOCIAL insurance (3.500.000) + health INSURANCE (600.000) + UI (200.000) = 4.300.000 copper.
Understanding properly apply this ratio to help businesses calculate the exact cost of personnel, at the same time avoid the risk of penalties for violating the provisions quotes submission. According to the Decree 12/2022/ND-CP, the penalty can be up to 150 million if the business is no SOCIAL insurance, health INSURANCE, UNEMPLOYMENT insurance for full staff.
Source reference:
- BHXH Việt Nam: https://baohiemxahoi.gov.vn
- Tổng cục Thuế: https://gdt.gov.vn
6. Mistakes businesses often make when payroll staff
In fact deployed, many businesses still encounter these errors seemed small, but big influence on the accuracy and satisfaction of employees. Some common mistakes include:
- Chỉ dựa vào dữ liệu chấm công thủ công: Việc thu thập giờ làm việc từ bảng chấm công file Excel dễ phát sinh nhầm lẫn, dẫn đến sai lệch kết quả tính lương. Sai sót này thường ảnh hưởng đến cả công thức tính lương, mức thu nhập thực tế của nhân viên, gây mất niềm tin và tăng tỷ lệ nghỉ việc.
- Not timely updates of changes to the labor law, tax: The provisions of the insurance, personal income tax, the minimum wage often change. If no updates, business violation of the law or subjected to administrative penalty.
- Skip elements welfare allowance: some businesses only base salary, but forget or false allowances, bonuses, overtime. This is not only false labor contracts, but also directly affect the rights of workers.
- No standardized formula for calculating the salary: Business applied multiple ways to calculate salary between different parts or branches, leads to a lack of consistency, hard to control, time control.
- Thiếu minh bạch trong quy trình tính lương: Khi nhân viên không hiểu rõ cách tính lương, dễ nảy sinh nghi ngờ, thắc mắc giảm tinh thần làm việc.
According to a survey by PwC 2024 (source), 42% of employees said that transparency and accuracy in payroll is the leading factor affecting the long-term commitment to the business. This shows that, process optimization, payroll is not only technical issues but also the strategy to retain personnel.
7. Software application LV SureHCS to optimal payroll process
Management software hr LV SureHCS của Lạc Việt được thiết kế nhằm giải quyết triệt để những hạn chế mà doanh nghiệp đang gặp phải. Không chỉ tự động hóa quy trình, payroll software từ Lạc Việt SureHCS còn đảm bảo tính chính xác, minh bạch tuân thủ pháp luật.
- Tự động hóa toàn bộ quy trình: Từ nhập dữ liệu chấm công, áp dụng công thức tính lương, tính thuế – bảo hiểm cho đến xuất bảng lương, tất cả được thực hiện trên một nền tảng duy nhất giúp giảm tới 80% thời gian xử lý so với làm thủ công.
- Updated labor law, tax rules latest: System software HRM always be updated automatically according to the circular, the new decree, help businesses avoid legal risks and ensure the correct rules.
- Customizable recipe salary calculator: Business can set up the calculation of different salaries by department, location, shift or privacy policy that still ensure consistency and easy to control.
- Data integration attendance and welfare: LV SureHCS direct connection with attendance system and benefits manager ensure all allowances, bonuses, overtime hours are calculated exactly.
- Provide payroll transparency for employees: Employees can check the payroll history, income, how to calculate the details through the portal self-service (Self-service Portal), the maximum reduction in inquiries and complaints.
CONVERT THE NUMBER OF PERSONNEL WITH COMPREHENSIVE LAC VIET SUREHCS
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Properly applied, payroll staff, not only to ensure the rights of workers but also help enterprises build image credits, professional. A payroll process clear, accurate, compliance with the law will limit the risk of dispute, at the same time enhance the cohesion, motivation of the team. To optimize efficiency, enterprises should combine between formula for calculating the salary standards of the same tools modern management, automate processes, and reduce errors. Not only is this step strategy in human resource management which is also a solid foundation to help business sustainable development.
