According to the new tax law draft effective from 2026, the personal family deduction is expected to increase to 15.5 million VND/month (compared to 11 million currently) and dependent deduction to 6.2 million VND/month. VNIT's tool has updated these figures for accurate calculations.

Gross salary is total income including insurance and tax contributions. Net salary is the actual amount you receive after deducting Social Insurance (SI), Health Insurance (HI), Unemployment Insurance (UI), and Personal Income Tax (PIT). You should negotiate Net salary to ensure actual income, or use VNIT's tool to convert backwards.

This is a unique feature of VNIT that helps you compare your current salary with the market average based on industry and years of experience. Results will show whether you belong to the low, average, or high salary group (Top 25%).

To calculate Net salary from Gross salary, you need to subtract: (1) Social insurance (SI 8%, HI 1.5%, UI 1%) = 10.5% of insurance salary base, (2) Personal Income Tax (PIT) calculated on taxable income after family deductions. Formula: Net salary = Gross salary - Insurance (10.5%) - PIT. VNIT's salary calculator automatically calculates all these amounts according to the latest 2026 regulations.

To calculate Gross salary from Net salary, you need to calculate backwards: Gross salary = Net salary + Insurance (10.5%) + PIT. However, this calculation is complex because PIT depends on Gross salary. VNIT's salary calculator has a "Net → Gross" feature that automatically calculates the exact Gross salary you need to achieve your desired Net salary.

According to new 2026 regulations, PIT tax brackets are simplified from 7 tiers to 5 tiers: Bracket 1 (up to 5 million): 5%, Bracket 2 (over 5 million to 10 million): 10%, Bracket 3 (over 10 million to 18 million): 15%, Bracket 4 (over 18 million to 32 million): 20%, Bracket 5 (over 32 million to 52 million): 25%, Bracket 6 (over 52 million to 80 million): 30%, Bracket 7 (over 80 million): 35%. Tax is calculated progressively by portions, meaning each portion of income is taxed at the corresponding rate.

Social insurance is calculated on insurance salary base (which can be equal to or lower than Gross salary). Employee contributes: SI 8%, HI 1.5%, UI 1% = total 10.5% of insurance salary base. Company contributes: SI 17.5%, HI 3%, UI 1% = total 21.5% of insurance salary base. Insurance salary base is usually agreed upon in the employment contract and can be lower than Gross salary to reduce costs for both parties.

Insurance salary base is the basis for calculating social insurance (SI, HI, UI). This salary can be equal to Gross salary or lower depending on the agreement with the company. Many companies pay insurance on a portion of salary to reduce costs for both parties. You should check your employment contract to know the exact insurance salary base.

According to new 2026 regulations, each dependent is deducted 6,200,000 VND/month (increased from 4.4 million VND/month in 2025, a 41% increase). Dependents include: children under 18 or in university, elderly parents with no income, spouse with no income. Total family deductions = Personal deduction (15,500,000 VND) + (Number of dependents × 6,200,000 VND).

Employment contract: Employee pays insurance (SI, HI, UI) 10.5% and PIT according to progressive 5-tier tax brackets (2026). Service contract/Freelancer: No insurance, only 10% tax on income from 2 million VND and above (withheld at source). When filing annual tax returns, service contract workers can then claim family deductions.

Civil servants do not have to pay unemployment insurance (UI) according to current regulations. However, according to the Employment Law 2025 effective from 1/1/2026, public employees will have to pay UI. VNIT's salary calculator has an option "I am a Civil Servant (Exempt from UI)" for accurate calculations.

Foreign workers: Have SI (8%, only pension & death benefits), have HI (1.5%), no UI (0%). Regarding tax: If resident >= 183 days/year, progressive tax by portions (5-35%) and eligible for family deductions like Vietnamese. If non-resident (< 183 days), fixed tax rate 20% and not eligible for family deductions.

2026 regulations have 2 major changes compared to 2025: (1) Increased family deductions: Personal deduction increased from 11 million to 15,500,000 VND/month (+41%), dependent deduction increased from 4.4 million to 6,200,000 VND/month (+41%). (2) Simplified tax brackets: From 7 tiers down to 5 tiers, helping reduce tax payments for many workers. With the same Gross salary, Net salary in 2026 will be higher than 2025.

PIT is withheld at source monthly from your salary. Companies/employers are responsible for withholding and paying tax on your behalf. At the end of the year, you can file tax returns to get tax refunds if overpaid or pay additional tax if underpaid. VNIT's salary calculator calculates monthly tax based on the latest regulations.

Regional minimum wage is the minimum salary that companies must pay to employees according to regulations. Insurance salary base cannot be lower than regional minimum wage. There are 4 regions: Region I (major cities): highest, Region II (medium cities), Region III (towns), Region IV (rural): lowest. VNIT's salary calculator automatically applies regional minimum wage when calculating insurance.

From 2026, family deductions have major changes: Personal deduction: Increases to 15 million VND/month (compared to 11 million VND in 2025). Dependent deduction: Increases to 6 million VND/person/month (compared to 4.4 million VND in 2025). This means if you have income below 15 million/month (before insurance), you will not have to pay PIT.

2026 applies a simplified progressive tax bracket with only 5 tiers (instead of 7 tiers as in 2025 and before). Simplifying the number of tiers and widening income ranges at each tax bracket helps simplify calculations and usually benefits most workers by reducing tax payments.

PIT is calculated based on when income is paid. If the company pays the Lunar New Year bonus in 2026 (e.g., January or February 2026), this amount will be calculated according to the new 2026 regulations: eligible for 15 million personal deduction and applying the new 5-tier tax bracket.

There are 2 fundamental differences you need to remember: Deduction amounts: 2026 is significantly higher (Personal 15M vs 11M; Dependent 6M vs 4.4M). Tax brackets: 2026 applies 5-tier bracket, while 2025 applies 7-tier bracket. You can use our tool and switch between "Year 2025" and "Year 2026" to see the exact difference in amounts.

Some common allowances not included in taxable income include: Lunch allowance, mid-shift meal allowance (maximum 730,000 VND/month). Phone allowance, uniform allowance (according to company regulations). Maternity allowance, severance pay, work accident compensation. Overtime pay (the portion exceeding regular working hours).

Gross salary: Total income including Insurance and Tax that the company pays you. Net salary: The actual amount you receive in your account after deducting Insurance (SI, HI, UI) and PIT. Advice: You should negotiate Gross salary for transparency about insurance contributions and future benefits.

If you sign a probation contract under 3 months and have total income of 2 million VND/payment or more, the company will withhold 10% PIT at source. However, if you have a commitment that annual income is below the tax threshold (using form 08/CK-PIT), you may temporarily not have this 10% deducted.

Foreigners residing in Vietnam calculate tax similarly to Vietnamese (progressive brackets). However, Social Insurance contributions will differ. VNIT's tool has a "Foreign Worker" option to accurately calculate SI contributions specifically for this group.