Gross and net salary in 2026: step-by-step calculation, insurance caps and worked examples
A "20 million salary" in a job post and the amount that reaches your bank account at the end of the month are rarely the same. The difference comes from three items: compulsory insurance, family deductions and personal income tax, and all three change in 2026. Below, everything is recalculated from scratch at the new rates: how much the employee pays, how much the employer pays, at what salary tax begins, and why you should negotiate in gross terms.
What gross and net salary mean
Gross salary is the total pay both parties agree on before anything is deducted; it is the figure written in the labour contract and the basis for insurance contributions. Net salary is what you actually receive after the company has withheld the employee's share of insurance and personal income tax. When a job post says "20 million salary" without specifying which, ask: for the same figure, gross and net differ by anywhere from two to several million VND a month.
- Employee pays
- 10.5%Social insurance (SI) 8%, health insurance (HI) 1.5%, unemployment insurance (UI) 1%, on the insurance salary
- Personal deduction
- 15.5 million VNDPer month, from the 2026 tax period
- Each dependant
- 6.2 million VNDPer month, must be registered with the tax authority
- SI and HI contribution cap
- 50.6 million VND20 times the reference level of 2,530,000 VND from 1 July 2026
Four steps from gross to net salary
- Gross salaryAs per the contract
- Minus 10.5% insuranceCapped
- Minus family deductions15.5 million + 6.2 million per dependant
- Taxable incomeApply the 5-bracket schedule
- Minus PIT5% to 35%
- Net salaryTake-home pay
- Calculate compulsory insurance
Under the Social Insurance Law 2024 (Luật Bảo hiểm xã hội 2024), the employee pays 8% social insurance, 1.5% health insurance and 1% unemployment insurance on the salary used as the contribution base, which is usually the gross salary in the contract. There are two caps: social and health insurance are not charged on the part above 20 times the reference level (50.6 million VND from 1 July 2026), and unemployment insurance is not charged on the part above 20 times the regional minimum wage (106.2 million VND in Region I). If the salary is below the regional minimum wage, contributions are based on the minimum.
- Subtract family deductions
Take your income after insurance and subtract 15.5 million VND for yourself and 6.2 million VND for each registered dependant, under the Resolution of the National Assembly Standing Committee applying from the 2026 tax period. If the result is negative, taxable income is zero and you pay no tax.
- Apply the 5-bracket progressive schedule
Taxable income is split into portions: the first 10 million is taxed at 5%, the part over 10 up to 30 million at 10%, over 30 up to 60 million at 20%, over 60 up to 100 million at 30%, and the part above 100 million at 35%. The tax on all the portions added together is the tax payable. Details and examples are on the personal income tax calculator page.
- Arrive at net salary
Net salary equals gross salary minus insurance and minus tax. The tool at the top of the page performs all four steps and shows a detailed breakdown of each item so you can check it against your payslip.
Three worked examples with real 2026 figures
| Item | Gross 20 million, no dependants | Gross 35 million, 1 dependant | Gross 60 million, 2 dependants |
|---|---|---|---|
| Social insurance 8% | Gross 20 million, no dependants1,600,000 | Gross 35 million, 1 dependant2,800,000 | Gross 60 million, 2 dependants4,048,000 (on the 50.6 million cap) |
| Health insurance 1.5% | Gross 20 million, no dependants300,000 | Gross 35 million, 1 dependant525,000 | Gross 60 million, 2 dependants759,000 (on the 50.6 million cap) |
| Unemployment insurance 1% | Gross 20 million, no dependants200,000 | Gross 35 million, 1 dependant350,000 | Gross 60 million, 2 dependants600,000 |
| Income after insurance | Gross 20 million, no dependants17,900,000 | Gross 35 million, 1 dependant31,325,000 | Gross 60 million, 2 dependants54,593,000 |
| Family deductions | Gross 20 million, no dependants15,500,000 | Gross 35 million, 1 dependant21,700,000 | Gross 60 million, 2 dependants27,900,000 |
| Taxable income | Gross 20 million, no dependants2,400,000 | Gross 35 million, 1 dependant9,625,000 | Gross 60 million, 2 dependants26,693,000 |
| Personal income tax | Gross 20 million, no dependants120,000 | Gross 35 million, 1 dependant481,250 | Gross 60 million, 2 dependants2,169,300 |
| Net take-home salary | Gross 20 million, no dependants17,780,000 | Gross 35 million, 1 dependant30,843,750 | Gross 60 million, 2 dependants52,423,700 |
Two points stand out in the table. First, someone with no dependants starts paying tax only when their gross salary exceeds about 17.32 million VND a month (15.5 million divided by the 89.5% left after insurance); a salary of 12 million VND carries 1,260,000 VND of insurance and no tax. Second, at 60 million, the part of the salary above the 50.6 million cap is not subject to social and health insurance, so the effective deduction rate is below 10.5%.
Working back from net to gross, and the cost to the employer
When a company offers a "net salary of 25 million", the contract must still state the corresponding gross amount as the basis for insurance contributions. For someone in Region I with no dependants, a net 25 million corresponds to a gross of about 28.49 million VND; the tool above works backwards by searching for the gross figure that produces exactly that net amount.
On top of this, the employer pays a further 21.5% on the insurance salary: 17.5% social insurance, 3% health insurance and 1% unemployment insurance. A position with a gross salary of 20 million VND costs the company about 24.3 million VND a month, before other benefits. Employees should know this figure when negotiating: a 1 million rise in gross pay costs the company 1.215 million, and employers can see the total cost with the staffing cost calculator.
| Item | Employee pays | Employer pays |
|---|---|---|
| Social insurance | Employee pays8% | Employer pays17.5% |
| Health insurance | Employee pays1.5% | Employer pays3% |
| Unemployment insurance | Employee pays1% | Employer pays1% |
| Total | Employee pays10.5% | Employer pays21.5% |
Items usually excluded from assessable income
Under current guidance, some payments a company makes alongside salary are excluded from assessable income up to certain limits: shift meal or lunch allowances of up to 730,000 VND a month if paid in cash; clothing allowances paid in cash of up to 5 million VND a year; phone allowances and business travel expenses under the company's internal rules; and the part of overtime and night-work pay above the rate for normal working hours. These items are also usually outside the insurance salary, so a contract that lists them separately from the salary for the job benefits both parties, provided the salary for the job is not pushed below its real level.
What to clarify when negotiating salary
- Whether the figure under discussion is gross or net; if net, what gross amount will be written in the contract.
- Whether insurance contributions are based on the full gross salary or only on the salary for the job.
- Which items are fixed monthly allowances, which are performance bonuses, and what the bonus criteria are.
- Which minimum wage region the workplace is in; this affects the minimum contribution and the unemployment insurance cap.
- Whether your dependants are registered; if not, register them through the company to get the deduction from the first month.
- What percentage of the salary is paid during probation, and how long probation lasts.
- The pay period and the exact payday.
Regional minimum wages for 2026 under Decree 293/2025/ND-CP: Region I 5,310,000, Region II 4,730,000, Region III 4,140,000 and Region IV 3,700,000 VND a month. The salary in the contract must not be lower than this for the simplest work under normal conditions.
Using the salary calculator on Việc Hot
Enter the salary, choose the direction (gross to net or the reverse), then the region and the number of dependants; the result appears immediately with a breakdown of each insurance item and each tax bracket. The tool uses the 2026 rates set out in this article; when the reference level or the regional minimum wage changes, the table will be updated accordingly.
Frequently asked questions
For someone working in Region I with no dependants, in 2026 you pay 2,100,000 VND in insurance and 120,000 VND in tax, and take home 17,780,000 VND. With one dependant there is no tax, and you take home 17,900,000 VND.
Someone with no dependants starts paying tax when their gross salary exceeds about 17.32 million VND a month, which is the point at which income after insurance exceeds the 15.5 million VND deduction. Each dependant raises this threshold by 6.2 million VND of income after insurance.
They are still based on the corresponding gross amount written in the contract, not on the net figure. The company must convert net to gross for the contract and for insurance contributions; ask to see this gross amount before you sign.
Social and health insurance are charged on at most 20 times the reference level: 46,800,000 VND in the first half of 2026 and 50,600,000 VND from 1 July 2026, when the reference level rises to 2,530,000 VND. Unemployment insurance is charged on at most 20 times the regional minimum wage.
A total of 21.5% of the insurance salary: 17.5% social insurance, 3% health insurance and 1% unemployment insurance, on top of the 10.5% withheld from the employee's salary.