You are looking for the more standard and effective salary calculation. Perhaps you're tired of calculating employee salaries manually? Do not worry, Viindoo will help you solve this problem through the article below.
Basic salary calculations
Basic salary plays an important role in workers' income. This is the basis for calculating allowances, social insurance and other benefits. The current basic salary calculation is different between officials, civil servants, public employees and employees working under labor contracts.
Basic salary of officials, civil servants and public employees
Salary calculation formula:
Basic salary = Base salary x Salary coefficient
According to Article 3 Resolution 69/2022/QH15 and Decree 24/2023/ND-CP, the basic salary coefficient is divided as follows:
- Intermediate base salary coefficient: 1.86 million VND/month
- Basic salary coefficient for College level: 2.10 million VND/month
- Basic salary coefficient for university level: 2.34 million VND/month
- Base salary coefficient for master's degree: 2.67 million VND/month
- Base salary coefficient for PhD level: 3.00 million VND/month
For example: For a civil servant with a university degree, the salary coefficient is 2.34, their basic salary is: 1.8 million VND/month x 2.34 = 4,212 million VND/month.
The basic salary of civil servants and public employees is calculated by coefficient
Basic salary of employees working under labor contracts
For employees working under labor contracts for businesses and individuals, the basic salary is agreed between the employee and the employer. However, this salary is not lower than the regional minimum salary as prescribed by the Government.
The current regional minimum wage is specified in Article 3 Decree 38/2022/ND-CP as follows:
Region | Minimum salary by month | Minimum hourly wage |
Region I | 4,680,000 VND/month | 22,500 VND/hour |
Region II | 4,160,000 VND/month | 20,000 VND/hour |
Region III | 3,640,000 VND/month | 17,500 VND/hour |
Region IV | 3,250,000 VND/month | 15,600 VND/hour |
The application of regional minimum wages ensures that workers will receive a minimum wage sufficient to cover basic living expenses and maintain a stable standard of living. At the same time, this also helps protect the rights of employees in salary agreements with employers.
Basic salary plays an important role in workers' income
Popular and accurate salary calculation formulas today
How to calculate product-based salary
Product-based salary is a payment method based on the number of products that workers complete in a certain period of time. This form of salary is often applied to workers working in the production and manufacturing industries.
Salary calculation formula:
Salary calculated by product = Product unit price x Number of completed products
For example: If a worker completes 200 products with a unit price of 50,000 VND/product, they will receive 10,000,000 VND in the month
Product-based wages help increase productivity
Advantages of calculating salary by product:
- Increase motivation and performance: Encourage employees to work hard, improve productivity and product quality to maximize personal income.
- Simplify management: Easily track and evaluate work efficiency based on the number of completed products, reducing the burden of working time management.
Disadvantages of the product-based salary calculation method:
- Work pressure: Unreasonable product norms can create great pressure, leading to overwork, negatively affecting health and product quality.
- Income inequality: Less skilled and productive workers may have difficulty maintaining a steady income, creating income disparities between individuals.
How to calculate salary by time
The method of calculating salary based on the employee's actual working time is based on determining the salary based on the total number of actual working hours in a certain period of time, usually monthly. The specific salary is usually agreed upon and clearly stated in the labor contract between the employee and the business.
Salary calculation formula:
Monthly salary = Negotiable salary / Number of working days in the month x Number of actual working days
If the enterprise fixes the number of working days in the month to 26, then calculate as follows:
Monthly salary = Negotiable salary / 26 x actual number of working days
For example:
- An employee has an agreed salary of 12,000,000 VND/month, working 22 days out of 23 working days in the month.
- This employee's actual monthly salary will be: 12,000,000 VND / 23 days/month x 22 days = 11,478,261 VND.
Note: The number of working days in a month and the actual number of working days may vary depending on business regulations and labor laws.
Salary calculation is based on the employee's actual working time
Advantages of calculating salary over time:
- Transparent and easy to apply: Time-based salary calculation form is simple, easy to understand and easy to implement for both employees and employers.
- Stable income: Employees can be assured of a stable monthly income, not affected by fluctuations in job performance or the market.
Disadvantages of the time-based salary calculation method:
- Reduced motivation to work: Fixed salary does not reflect true capacity and work efficiency, which can reduce the motivation and creativity of workers.
- Reduced overall efficiency: Regularly paying even inefficient workers can create injustice and reduce the overall productivity of the business.
How to calculate salary by month
Monthly salary calculation is the form of salary payment once a month or once every half a month. They are fixed in the labor contract between the employee and the enterprise. This method is popular and convenient for managing employees' personal salaries and managing the company's salary fund.
Salary calculation formula:
Monthly salary = [(Salary + Allowances if any) / Standard number of working days] x Actual number of working days.
In which, the standard number of working days is the number of administrative working days in the month. If an enterprise regulates work from Monday to Friday, with Saturday and Sunday off, the standard number of working days is 22.
For example: If an employee works from Monday to Friday, has Saturday and Sunday off, and the month has 30 days, including 26 working days and 4 Sundays off. If this employee works 22 days in a month, the salary received will be: 10,000,000 / 26 x 22 = 8,461,538 VND.
Monthly salary calculation is the method of paying salary once a month or once every half a month
Advantages of monthly salary payment:
- Manage personal finances easily: Receiving a regular monthly salary helps employees plan their spending and manage their personal salary more effectively.
- Simplify salary fund management: Businesses can easily estimate and allocate monthly salary budgets, minimizing financial risks.
Disadvantages of calculating salary by month:
- Lack of flexibility: A fixed monthly salary may not be suitable for jobs that are seasonal, seasonal, or have large fluctuations in workload.
How to calculate weekly salary
The weekly salary calculation method means that businesses pay salaries once a week, that is, every 7 days. This helps workers easily manage their weekly finances and avoid difficulties due to financial shortages.
Salary calculation formula:
Salary paid for 1 week = (Monthly salary x 12 months) / 52 weeks
For example: Mr. B agreed to a monthly salary of 10,000,000 VND and the company paid him weekly. So Mr. B's weekly salary is: 10,000,000 x 12 / 52 = 2,307,692 VND.
Payroll cycle every 7 days
Advantages of the 7-day salary payment method:
- Flexible and responsive: Weekly salary payment allows timely adjustment of salary based on the actual situation of work and employee performance.
- Financial support: Employees can be more proactive in managing expenses and avoid difficulties caused by short-term financial shortages.
Disadvantages of calculating salary by week:
- Costly management time: Calculating and paying weekly salary requires more time and effort than monthly salary payment.
- Limit benefits: Employees may have difficulty accessing social benefits or insurance benefits that are often calculated on a monthly basis.
- Limited scope of application: This form of payment is only suitable for certain types of jobs, especially jobs that are seasonal or unstable.
How to calculate salary by working day
The daily wage calculation is suitable for short-term or special jobs. In this method, wages are determined and paid after each working day, ensuring workers receive accurate wages for the actual number of days worked.
If the contract agrees to pay salary by day of the month:
Salary paid for 1 working day = Salary for the whole month: Number of normal working days in the month
If the contract agrees to pay wages by day of the week:
Wage paid for 1 day = Weekly wage: Number of working days in the week
For example: Ms. A has a labor contract with a salary of 12,000,000 VND, working 24 days/month. Daily salary will be: 12,000,000 / 24 x 12 = 500,000 VND.
Daily salary calculation is suitable for short-term jobs
Advantages of paying salary based on number of working days:
- Fairness and transparency: Ensure employees are paid wages commensurate with the actual number of working days, creating fairness and transparency in labor relations.
- Effective management: Helps businesses closely monitor labor costs and strictly control salary funds.
Disadvantages of calculating salary by day:
- Benefit restrictions: Difficult to combine with traditional welfare regimes such as insurance, bonuses, and allowances that are usually calculated on a monthly basis.
- Complex in calculation: Changing work schedules can cause difficulties in calculating and managing salaries.
- Limited scope of application: Mainly suitable for seasonal, short-term or specific jobs that require flexibility in working time.
How to calculate salary based on working hours
Hourly wage calculations are commonly used in many industries, such as peak sales, photo modeling, and customer service.
Calculation formula:
Wage paid for 1 hour = Daily wage: 8 hours
Of which, 8 hours is the normal number of working hours in a day for an employee, as prescribed in Article 105 of the 2019 Labor Code.
For example: If Mr. B agrees with the company a daily salary of 480,000 VND, the hourly salary is:
The method of calculating salary based on working hours is applied in many jobs
Advantages of paying by working hours:
- Fairness and transparency: Ensure employees are paid wages commensurate with actual working time, creating fairness and transparency in labor relations.
- Increase work efficiency: Encourage employees to focus and work effectively within specified hours to maximize income.
Disadvantages of the hourly wage calculation method:
- Complex management: Calculating hourly wages can be difficult and time-consuming for the human resources department, especially when there are many employees with different salaries and working hours.
- Difficulty in comparison: Applying different hourly wages to job positions can make it difficult to compare and evaluate employee performance.
How to calculate contract salary
Contract salary is a salary payment method based on the amount of work completed, the time it is completed on time and the agreed unit price. This form of payment is often applied to jobs that have a clear nature and quantifiable output products. For example, construction workers, product sales staff, etc.
Salary calculation formula:
Contract salary = Contract salary x Job completion rate
For example: Furniture company A hires Mr. B to complete interior products as requested. The salary is 15,000,000 VND and needs to complete 15 products this month. Mr. B completed 12 products, the completion rate was 80%. So Mr. B's salary is: 15,000,000 x 80% = 12,000,000 VND.
Contractual salary is a payment method based on the amount of work completed
Advantages of paying piece wages:
- Increase work motivation: Product contracting encourages workers to make efforts to improve performance and quality of work to achieve the desired income level.
- Fairness and transparency: Salary is proportional to labor productivity, ensuring workers are paid fairly for what they produce.
Disadvantages when applying piece salary calculation:
- Work pressure: If the contract norms are not reasonable, workers may be pressured by quantity, leading to overwork and affecting their health.
- Difficult to control quality: Focusing on product quantity can cause workers to ignore quality factors, affecting the reputation and image of the business.
In some cases, there are other special salary calculations
In addition to basic forms of salary such as product salary, time salary, daily salary, in reality there are also some special cases where a separate salary calculation formula is applied, suitable to the specifics of the job and labor nature.
Enterprises should choose a form of salary calculation that is appropriate to the specific nature of their business and the actual situation of the enterprise. (Source: Internet)
Overtime pay on weekdays, Sundays, and holidays
- Weekdays: When employees work overtime on regular working days, salary will be calculated based on each day's basic salary. Calculation formula: 1 hour overtime salary = (basic daily salary * 150%) / 8.
- Sunday: On weekly days off, or Sunday, overtime wages must be higher than regular working days. Therefore, Sunday salary = basic daily salary * 200%.
- Holidays: During Tet holidays, overtime wages also increase higher than usual to promote employee dynamism and dedication. Calculation formula: Overtime salary on Tet holidays = basic daily salary * 300%.
13th month salary
- Calculated based on average salary: 13th month salary can be calculated based on the employee's average salary in the most recent 12 months. If the employee has worked for 12 months, the 13th month salary is equal to the average salary of those 12 months. If the employee has not worked for 12 months, the 13th month salary is calculated based on the ratio of working time and average salary.
- Calculating December salary: Another popular way to calculate December salary is based on December salary.
Salary during vacation time
- Annual leave: During annual leave, employees receive full salary according to the labor contract
- Off on Tet holidays: Employees are fully paid during Tet holidays, but it depends on the specific regulations of each business
- Personal leave: In case an employee leaves for personal work, they may be paid according to the provisions of the labor contract or according to the provisions of law.
- Leave of absence due to the fault of the employee or the business: In this case, salary payment will comply with the specific terms specified in the labor contract.
Save time with Viindoo Payroll automatic payroll software
Viindoo is a leading technology company in the field of providing business management software solutions in Vietnam. Here the mission is to optimize operations, improve productivity and profits for businesses. One of Viindoo ‘s outstanding solutions is Viindoo Payroll, which supports automating the payroll process, ensuring accuracy and efficiency.
Vindoo Payroll - Enhance human resource management, accompanying businesses. (Source: Internet)
In particular, salary workers only need a few simple steps to set up an automatic salary calculation formula and export Payroll for all employees. Furthermore, your business can add or remove salary calculation regulations at will based on common salaries, bonuses, and allowances, standardized according to the common needs of the business
Payroll software - Viindoo Payroll is the optimal salary management solution for businesses:
- Calculate salary automatically and accurately: Save time and effort with the feature of automatically synthesizing data, calculating payroll according to custom formulas, and creating mass payslips for each group of employees.
- Flexible salary calculation rules: Standardize salary calculation rules according to business needs, easily adjust salaries, bonuses, and allowances.
- Diverse salary structure: Flexible salary structure design, suitable for all types of businesses and easy to adjust when necessary.
- Information security: Decentralize access to salary information at each level, ensuring security and privacy.
- Smart integration and reporting: Connects to Viindoo's accounting software and provides multi-dimensional analysis reports, helping to track salary costs and make timely decisions.
Contact with Vindoo To receive free consultation:
- Address: 6th Floor, Taiyo Building, 97 Bach Dang, Ha Ly Ward, Hong Bang District, Hai Phong City, Vietnam
- Hotline: +84 225 730 9838
- Email: sales@viindoo.com
With salary calculation methods above, you can easily apply it to calculate salaries for employees in the company. However, to save time and ensure accuracy, choose software Viindoo to support and accompany you in managing human resources salaries intelligently and effectively!
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