Payroll calculation


According to Resolution No. 86/2019/QH14 of the National Assembly, the base salary will be adjusted to increase by VND 110,000/month from July 1, 2020. In particular, the base salary increase from VND 1,490,000 million / month to VND 1,600,000 / month from July 1, 2020. Pensions, social insurance subsidies, monthly subsidies for subjects guaranteed by the State budget and preferential subsidies, people with remuneration with revolution also increased according to the increase in base salary.

However, this year due to the negative impact of the Covid-19 epidemic on the economic, social situation and the state budget balance, the base salary has not been adjusted since July 1, 2020.

Currently, the base salary is still applied is VND 1,490,000/month as prescribed in Decree No. 38/2019/ND-CP of May 9, 2019 and the pension adjustment level, social insurance subsidies and monthly subsidies are applying as prescribed in the Government's Decree No. 44/2019/ND-CP of May 20, 2019.

1.How to calculate salary

Wages have always been a hot issue, of interest to most businesses today. That's why managing C&B (Compensation & Benefits) is the most difficult part of hr. Human resources managers of companies, large and small, need to know the regulations and principles of payroll according to Vietnamese law and understand the forms of pay to choose strategies suitable to the model of each enterprise.


– Currently, there are 5 forms of salary including: Pay by time, product, Salary Securities, according to revenue, according to the agreement between the two parties. With each form of pay, there is a different way of calculating salaries. All forms of pay must be ensured on the exact same principle as well as on time no matter how different or separate the form of pay.

– The salary calculation formula will be different and more difficult for businesses with a large number of employees or apply multiple salary formulas for each department at the same time. But if businesses can use an app or a good accounting team, those problems will be completely solved.