Where is the way? Convert Net salary to Gross Fast and accurate? In the following article, Viindoo will introduce to readers how to convert salary from net to gross and vice versa. At the same time, the article will also introduce the fastest and most accurate online salary conversion tool.
Before coming to the detailed conversion method, first of all, we need to know about Net salary and Gross salary:
Gross salary is TOTAL INCOME employees receive, including basic salary, personal income tax, insurance, allowance, commission... When receiving this salary, the employee must automatically deduct the above expenses such as: insurance and taxes.
Net salary is salary ACTUALLY RECEIVED that the employee is paid by the company/enterprise after deducting insurance expenses and personal income tax. This is the salary received by the employee without any additional costs.
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1. How to convert Net salary to Gross
Recipe convert Net salary to Gross is: Gross salary = Net salary + Social insurance + health insurance + PIT + unemployment insurance. In which, the insurance costs are calculated based on the gross salary of the employee.
In addition, the assumed Gross salary (GRGD) can also be used as a basis for calculating premiums. To calculate these fees, we need to calculate the converted income (TNQ) according to the formula: TNQ = Net salary - Deductions.
The following is a tax calculation table based on the CIT of each different salary:
|
Monthly income as a basis for conversion
|
Taxable income
|
|
4.75 million won
|
TNQ/0.95
|
|
Over 4.75 – 9.25 million VND
|
(TNQ – 0.25 million)/0.9
|
| Over 9.25 – 16.05 million VND | (TNQ – 0.75 million)/0.85 |
| Over 16.05 – 27.25 million VND | (TNQ – 1.65 million)/0.8 |
| Over 27.25 – 42.25 million VND | (TNQ – 3.25 million)/0.75 |
| Over 42.25 – 61.85 million VND | (TNQ – 5.85 million)/0.7 |
| Over 61.85 million | (TNQ – 9.85 million)/0.65 |
The assumed Gross salary will be calculated by the formula: GRGD = TNQ + Premium + Family deductions. Businesses can easily calculate the cost of insurance based on the hypothetical Gross salary result.
How to convert Net salary to Gross>>>> More Reference: Payroll software
2. How to convert Gross salary to Net
The following is the formula to convert Gross salary to Net: Net salary = Gross salary - (Social insurance + health insurance + PIT + unemployment insurance). In which, types of insurance and taxes account for different proportions of the total Net salary:
- Social insurance accounts for 8% of Net salary.
- Health insurance accounts for 1.5% of Net salary.
- Accident insurance accounts for 1% of Net salary.
- Personal income tax will vary depending on the salary the employee receives.
Normally, personal income tax is calculated according to the formula: PIT = Taxable income * tax rate. In which, taxable income = Total salary received - tax exempt items - deductions.
- Total salary received = Basic salary + allowance + supplement.
- Tax exempt amount = Overtime salary + allowances (lunch, uniform, phone,...) + bonus.
- Deductions = Dependency deduction (4.4 million / person / month) + Family deduction (11 million / person / month).
The following is a table of tax rates for different income levels that businesses need to refer to:
|
Taxable income
| |
% Tax |
|
By year
|
Monthly
| |
|
< 60 million won
| < 5 million | 5% |
| 60 – 120 million VND | 5-10 million won | 10% |
| 120 – 216 million VND | 10 - 18 million won | 15% |
| 216 – 384 million VND | 18 – 32 million won | 20% |
| 384 – 624 million VND | 32 – 52 million won | 25% |
| 624 – 960 million VND | 52 – 80 million VND | 30% |
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3. Tool to convert net salary to gross online
To convert Net salary to Gross more quickly and flexibly, business owners or employers can use free online tools. One of the fast, accurate and widely used conversion websites today is nicvn.com. With this website, users only need to enter the required information and the conversion results will be displayed quickly and accurately.
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4. Excel file table to convert net salary to gross
The following is an Excel table to convert Net salary to Gross that readers can apply to calculate salary quickly and conveniently:
Excel table to convert net salary to GrossFAQs
What is the difference between net salary and gross salary?
Gross salary refers to the total salary before any deductions or taxes are applied, while net salary is the amount an employee receives after deductions such as taxes, insurance, and other contributions.
Why would I need to convert my net salary to gross or vice versa?
You may need to convert net salary to gross if you want to determine the total cost of employing someone, including taxes and other contributions. Converting gross to net can help you understand the amount you will actually take home after deductions.
How can I convert my net salary to gross online in 2023?
What factors are typically considered when converting net salary to gross?
When converting net salary to gross, factors such as income tax rates, social security contributions, health insurance premiums, and other deductions specific to your country or region are taken into account.
Are there any limitations to using online salary conversion tools?
While online tools are convenient, they may have limitations. They might not account for certain regional or industry-specific deductions or exemptions. Additionally, they may not consider complex scenarios, so it's best to consult a professional for accurate calculations in such cases.
Can I rely solely on online tools to convert my salary, or should I consult a professional?
Yes, many online tools offer options to calculate salaries for self-employment or freelance work. They consider additional factors such as self-employment taxes, deductions, and business-related expenses to determine the net or gross amounts.
In the above post, Viindoo has compiled information related to convert Net salary to Gross. Hopefully this article will be useful and help businesses calculate wages for employees more quickly and conveniently. Follow the next articles on our website for more information on corporate governance!
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