6 common salary calculation methods in Vietnam
Did you know: Each profession with a different nature of work will have different salary calculation methods. For example, there will be jobs that are paid based on time, revenue, and there are also jobs that are paid based on products. Specifically, how to calculate the salary for each type of job, let’s find out with Smart Solutions For Business Company Limited(S4B Vietnam) in this article!
1. How to calculate salary over time
An employee’s salary can be calculated hourly, daily, weekly or monthly. However, we have the two most basic ways to calculate salary based on time:
1.1 The first way
Monthly salary = Basic salary + Allowances if any/standard working day x total number of actual working days
or:
Monthly salary = Basic salary of the month – (Monthly basic salary / standard monthly salary) x number of days off without pay.
In which: The number of administrative work days in the month is the standard work day.
With this method of salary calculation, the monthly salary is calculated clearly, the amount deducted for each day of unpaid leave is fixed, so employees do not have too many questions. In case the employee comes to work fully according to regulations and there are no other changes, the monthly salary will be calculated according to the labor contract agreement.
What method are you receiving your salary? Chances are you don’t clearly understand the company’s salary calculation principles.
>>>Read more: Payroll processing companies are safe solution for business
1.2 Second way
Monthly salary = Basic salary + Allowances if any/26 days x actual number of working days
With this second calculation, the monthly salary is not a certain number because the standard workday of each month is different. Therefore, if a business calculates salary this way, employees should consider which month is appropriate to take unpaid leave to balance their own monthly expenses while also creating conditions for the business not to be affected. much to productivity.
2. How to calculate salary based on revenue
Salary calculation based on revenue is a form of salary calculation based on the ability and efforts of employees. This method often applies to sales staff, sales staff, real estate brokers,…
Accordingly, employee salaries and bonuses depend on whether sales targets are met or not for detailed calculations. Specifically, employee salaries are paid in the following ways:
- Based on personal sales to pay bonuses;
- Based on group sales to pay salaries and bonuses;
- Based on other forms of business rewards such as market development or debt, etc.
Follow the article “6 most common salary calculation methods of Vietnamese businesses”
3. How to calculate salary by product
Product-based salary is a strict calculation method with the criterion of doing as much as you get. This is a way to improve business efficiency and encourage employees to increase productivity. Monthly salary in this way is calculated as follows:
Monthly salary = Number of products x Salary per product received
Currently, most businesses apply this form of salary calculation to help increase products and meet the capacity of workers.
4. How to calculate leave salary
According to the labor contract agreement, the way to calculate leave salary will have the following 2 cases:
- If the termination is due to the employee’s breach of contract, the enterprise will not be responsible for paying the remaining salary.
- If the employee quits his job due to the company’s fault, the remaining salary will be paid according to the contract agreement.
In addition, if due to objective reasons that are not the fault of either party, such as natural disasters, epidemics, relocation of production and business locations, or insufficient raw materials during production, the two parties can agree on ways to the following:
- In case the employee works for 14 days and then quits, the quit salary must not be lower than the minimum salary agreed in the contract.
- In case the employee works for more than 14 days and then quits, the leave salary will be agreed between the two parties but will not be lower than the minimum wage.
5. How to calculate holiday pay
Employees who work for 12 full months are entitled to annual leave, have a full salary and bonus regime, and depending on the nature of the job and the business, will receive full salary from 6-12 days based on Article 113 of the Ministry. Labor law.
In addition, according to Article 112 of the Labor Code, employees are still entitled to full salary on the following days off and holidays:
- Receive 13th month salary
- Lunar New Year (Lunar calendar)
- Liberation Day April 30
- International Labor Day May 1
- National Day September 2
- Hung King’s Death Anniversary March 10
In addition, according to Article 116, employees are still entitled to full salary for the following personal days off:
- Leave for your marriage: 3 days
- Take 1 day off if your biological or adopted child gets married
- Wife, husband, biological children, adopted children, biological parents of husband or wife, adoptive parents of deceased husband or wife: 3 days
So we have compiled the salary calculation methods that most businesses currently apply to calculate income for employees. Now, compare it with the formulas we just shared above to know how your salary is calculated!
S4B Vietnam
- Address: Unit 602A, Tower A, Handi Resco Office Building. 521 Kim Ma Street, Ba Dinh District, Hanoi
- Tel: + 84 24 3974 4181
- Email: service@s4b.com.vn
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