{"id":1285,"date":"2025-12-28T11:14:58","date_gmt":"2025-12-28T02:14:58","guid":{"rendered":"https:\/\/est.haro-inc.com\/?p=1285"},"modified":"2025-12-28T11:17:49","modified_gmt":"2025-12-28T02:17:49","slug":"vietnam-payroll-deductions","status":"publish","type":"post","link":"https:\/\/est.haro-inc.com\/en\/pyroll-en\/vietnam-payroll-deductions\/","title":{"rendered":"How Deductions Work (SI \/ HI \/ UI \/ PIT): A Complete Overview and Calculation Flow of Vietnam Payroll"},"content":{"rendered":"\n<p>In Vietnam\u2019s payroll calculations, multiple deductions \u2014 including <strong><span class=\"swl-inline-color has-swl-deep-01-color\">social insurance (SI \/ HI \/ UI) and personal income tax (PIT)<\/span><\/strong> \u2014 are deducted step by step.<br>\nWithout a proper understanding of these mechanisms, companies may face <strong>incorrect net salary calculations, legal non-compliance, and tax risks<\/strong>.<\/p>\n\n\n\n<p>In this article, we clearly explain <span class=\"swl-marker mark_orange\"><strong>the types of deductions, their scope, and the calculation order (flow)<\/strong><\/span> from a practical perspective.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Overall structure of payroll deductions in Vietnam<\/h2>\n\n\n\n<p>Payroll calculations in Vietnam process the following <span class=\"swl-marker mark_orange\"><strong>four types of deductions<\/strong><\/span> sequentially.<\/p>\n\n\n\n<div class=\"wp-block-group is-style-big_icon_good\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<ul class=\"wp-block-list\">\n<li>Social Insurance (SI)<\/li>\n\n\n\n<li>Health Insurance (HI)<\/li>\n\n\n\n<li>Unemployment Insurance (UI)<\/li>\n\n\n\n<li>Personal Income Tax (PIT)<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p>\ud83d\udc49 The key point is that <strong>social insurance is calculated before tax<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">\u2460 How social insurance (SI \/ HI \/ UI) works<\/h2>\n\n\n\n<p>Social insurance is calculated by <span class=\"swl-marker mark_orange\"><strong>applying fixed contribution rates to salary amounts<\/strong><\/span>,<br>\nand is divided into <strong>employee contributions<\/strong> and <strong>employer contributions<\/strong>.<\/p>\n\n\n\n<p>\u203b For detailed eligibility criteria and rules regarding social insurance, please also refer to:<br>\n\u201c<a href=\"https:\/\/est.haro-inc.com\/social-insurance\/vietnam-insurance\/\">Social Insurance Eligibility and Contribution Calculation<\/a>\u201d.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Employee social insurance contribution rates<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Item<\/th><th>Rate<\/th><\/tr><\/thead><tbody><tr><td>Social Insurance (SI)<\/td><td>8%<\/td><\/tr><tr><td>Health Insurance (HI)<\/td><td>1.5%<\/td><\/tr><tr><td>Unemployment Insurance (UI)<\/td><td>1%<\/td><\/tr><tr><td><strong>Total<\/strong><\/td><td><strong>10.5%<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">\u2461 Salary components subject to social insurance contributions<\/h2>\n\n\n\n<p>Social insurance <span class=\"swl-marker mark_orange\"><strong>does not apply to all types of compensation<\/strong><\/span>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Included wages<\/h3>\n\n\n\n<div class=\"wp-block-group is-style-big_icon_point\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<ul class=\"wp-block-list\">\n<li>Base salary<\/li>\n\n\n\n<li>Position and responsibility allowances<\/li>\n\n\n\n<li>Managerial \/ title allowances<\/li>\n\n\n\n<li>Fixed and regularly paid allowances<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Excluded wages<\/h3>\n\n\n\n<div class=\"wp-block-group is-style-big_icon_bad\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<ul class=\"wp-block-list\">\n<li>Meal allowances (under certain conditions)<\/li>\n\n\n\n<li>Transportation allowances<\/li>\n\n\n\n<li>Irregular bonuses<\/li>\n\n\n\n<li>Tet bonus (annual bonus)<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">\u2462 How personal income tax (PIT) works<\/h2>\n\n\n\n<p>PIT is calculated based on <span class=\"swl-marker mark_orange\"><strong>taxable income after social insurance deductions<\/strong><\/span>.<\/p>\n\n\n\n<p>The calculation process is as follows:<\/p>\n\n\n\n<div class=\"wp-block-group is-style-big_icon_good\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<ol class=\"wp-block-list\">\n<li>Calculate total gross income<\/li>\n\n\n\n<li>Deduct social insurance (SI \/ HI \/ UI)<\/li>\n\n\n\n<li>Apply applicable deductions (basic deduction, dependent deduction)<\/li>\n\n\n\n<li>Apply progressive tax rates to taxable income<\/li>\n<\/ol>\n<\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">\u2463 Deduction calculation flow (overall picture)<\/h2>\n\n\n\n<p>The payroll deduction flow proceeds in the following order:<\/p>\n\n\n\n<div class=\"wp-block-group is-style-big_icon_point\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<ol class=\"wp-block-list\">\n<li>Total gross salary<\/li>\n\n\n\n<li>Social insurance deductions (SI \/ HI \/ UI)<\/li>\n\n\n\n<li>Determination of taxable income<\/li>\n\n\n\n<li>Calculation of PIT (personal income tax)<\/li>\n\n\n\n<li><strong>Net salary<\/strong><\/li>\n<\/ol>\n<\/div><\/div>\n\n\n\n<p>\ud83d\udc49 The most important point is that <span class=\"swl-marker mark_orange\"><strong>PIT is calculated last<\/strong><\/span>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Common mistakes and points to note<\/h2>\n\n\n\n<div class=\"wp-block-group is-style-big_icon_caution\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<ul class=\"wp-block-list\">\n<li>Calculating social insurance and PIT at the same time<\/li>\n\n\n\n<li>Including allowances that are not subject to social insurance<\/li>\n\n\n\n<li>Applying UI to foreign employees incorrectly<\/li>\n\n\n\n<li>Failing to reflect updated contribution rates after legal revisions<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Ensuring accurate payroll and deduction management<\/h2>\n\n\n\n<p>Deduction calculations are closely linked to:<\/p>\n\n\n\n<div class=\"wp-block-group is-style-big_icon_good\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<ul class=\"wp-block-list\">\n<li>Payroll item design<\/li>\n\n\n\n<li>Social insurance regulations<\/li>\n\n\n\n<li>Tax law revisions<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p>Because these elements are closely interconnected, <strong>managing them solely with Excel has clear limitations<\/strong>.<br>\nWith EST, you can <strong>centralize payroll, deductions, social insurance, and PIT management in Vietnam<\/strong>, while staying compliant with legal changes.<\/p>\n\n\n\n<p>\ud83d\udc49 Please also refer to \u201c<a href=\"https:\/\/est.haro-inc.com\/en\/payroll-en\/vietnam-payroll-rule\/\">Basic Rules of Payroll Calculation in Vietnam<\/a>\u201d.<\/p>\n\n\n<div class=\"p-blogParts post_content\" data-partsID=\"983\">\n<div class=\"swell-block-fullWide pc-py-60 sp-py-40 has-bg-img alignfull lazyload\" style=\"background-color:rgba(247, 247, 247, 0.41)\" data-bg=\"http:\/\/est.haro-inc.com\/wp-content\/uploads\/2025\/11\/DSC_1122.jpg\"><div class=\"swell-block-fullWide__inner l-article\">\n<div class=\"wp-block-columns\">\n<div class=\"wp-block-column\">\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"600\" height=\"400\" src=\"http:\/\/est.haro-inc.com\/wp-content\/uploads\/2025\/11\/cta2.png\" alt=\"\" class=\"wp-image-504\" srcset=\"https:\/\/est.haro-inc.com\/wp-content\/uploads\/2025\/11\/cta2.png 600w, https:\/\/est.haro-inc.com\/wp-content\/uploads\/2025\/11\/cta2-300x200.png 300w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/figure>\n\n\n\n<div class=\"swell-block-button blue_ is-style-btn_normal\"><a href=\"https:\/\/est.haro-inc.com\/en\/download\/\" class=\"swell-block-button__link\"><span>Download Document<\/span><\/a><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column\">\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"600\" height=\"400\" src=\"http:\/\/est.haro-inc.com\/wp-content\/uploads\/2025\/11\/cta1.png\" alt=\"\" class=\"wp-image-505\" srcset=\"https:\/\/est.haro-inc.com\/wp-content\/uploads\/2025\/11\/cta1.png 600w, https:\/\/est.haro-inc.com\/wp-content\/uploads\/2025\/11\/cta1-300x200.png 300w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/figure>\n\n\n\n<div class=\"swell-block-button green_ is-style-btn_normal\"><a href=\"https:\/\/est.haro-inc.com\/en\/contact\/\" class=\"swell-block-button__link\"><span>Contact<\/span><\/a><\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>In Vietnam\u2019s payroll calculations, multiple deductions \u2014 including social insurance (SI \/ HI \/ UI) and personal income tax (PIT) \u2014 are deducted step by step. Without a proper understanding of these mechanisms, companies may face incorrect net salary calculations, legal non-compliance, and tax risks. In this article, we clearly explain the types of deductions, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1061,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"swell_btn_cv_data":"","_locale":"en_US","_original_post":"https:\/\/est.haro-inc.com\/?p=1281","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-1285","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pyroll-en","en-US"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/est.haro-inc.com\/wp-content\/uploads\/2025\/12\/column5.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/posts\/1285","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/comments?post=1285"}],"version-history":[{"count":1,"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/posts\/1285\/revisions"}],"predecessor-version":[{"id":1287,"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/posts\/1285\/revisions\/1287"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/media\/1061"}],"wp:attachment":[{"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/media?parent=1285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/categories?post=1285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/tags?post=1285"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}