Should we choose Gross salary or Net salary when looking for job?


 Net salary or Gross salary are two types of salary that the enterprises and the employees themselves should understand clearly. Each type has its own calculation formula, advantages and disadvantages. Let’s distinguish between Net salary and Gross salary, thereby deciding which type to choose when looking for job. 


Distinguishing between Gross salary and Net salary
  • Gross salary: means the pre-tax salary, representing the total salary of the employees before deducting insurance premiums and personal income taxes.
  • Net salary: means the after-tax salary, representing the amount of salary actually received by the employees, after deducting all insurance premiums and taxes. 
Advantages and disadvantages of Gross salary and Net salary

Gloss salary and Net salary both have their own advantages and disadvantages
Depending on the salary policy of the employers as well as the agreement, you will choose the appropriate Gloss salary or Net salary. The hereinafter are the advantages and disadvantages of each salary type that you should consider:
Gross salary
  • Advantages: The employees can see their total pre-tax income, from which they can clearly calculate the amount of insurance premium and personal income tax that they must pay.
  • Disadvantages: Tax and insurance premium rates may be very high if the gross salary is high.
Net salary
  • Advantages: The employees can know the exact amount of money that they finally receive, regardless of how much tax or insurance premium is deducted.
  • Disadvantages: The employees do not know the pre-tax salary, which may be misunderstood when compared with the Gross salary of others.
Should we negotiate Gloss salary or Net salary when applying for job?
Most employers will mention Gloss salary. And the advice for you is also to choose Gross salary. The Vietnamese law clearly stipulates the responsibility for social insurance premium payment of the employees and the enterprises. If you are unfortunately unemployed, leave for maternity or occupational accident, you will be still entitled to benefits on the Gross salary.
Hopefully through this article, you can distinguish between Net salary and Gross salary, and know what salary should be negotiated when interviewing. Visit HR2B to search for senior recruitment job opportunities with extremely attractive salary.

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