{"id":7334,"date":"2021-09-24T15:10:00","date_gmt":"2021-09-24T08:10:00","guid":{"rendered":"https:\/\/pl-partners.vn\/?p=7334"},"modified":"2024-01-03T10:15:43","modified_gmt":"2024-01-03T03:15:43","slug":"are-salaries-paid-according-to-kpis-subject-to-social-insurance-and-personal-income-tax-payment","status":"publish","type":"post","link":"https:\/\/pl-partners.vn\/en\/are-salaries-paid-according-to-kpis-subject-to-social-insurance-and-personal-income-tax-payment\/","title":{"rendered":"Are salaries paid according to KPIs subject to social insurance and personal income tax payment?"},"content":{"rendered":"<p style=\"text-align: center;\"><iframe style=\"border-radius: 12px;\" src=\"https:\/\/open.spotify.com\/embed\/episode\/4LLIooipWetLBQ1HzAmcor?utm_source=generator\" width=\"100%\" height=\"352\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">KPI is known as a key performance indicator. Salary based on KPI is the amount paid according to the employee performance. Currently, many enterprises have applied the salary calculated according to KPI in addition to the fixed salary to promote the job performance of employees. Is salary paid based on KPIs subject to social insurance contribution? Let&#8217;s find out in this article with PL &amp; Partners Law Firm.\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">N\u1ed9i dung b\u00e0i vi\u1ebft<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/pl-partners.vn\/en\/are-salaries-paid-according-to-kpis-subject-to-social-insurance-and-personal-income-tax-payment\/#1_HOW_DOES_THE_LAW_PRESCRIBE_SALARY\" title=\"1. HOW DOES THE LAW PRESCRIBE SALARY?\">1. HOW DOES THE LAW PRESCRIBE SALARY?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/pl-partners.vn\/en\/are-salaries-paid-according-to-kpis-subject-to-social-insurance-and-personal-income-tax-payment\/#2_ARE_SALARIES_PAID_ACCORDING_TO_KPIs_SUBJECT_TO_SOCIAL_INSURANCE_CONTRIBUTION\" title=\"2. ARE SALARIES PAID ACCORDING TO KPIs SUBJECT TO SOCIAL INSURANCE CONTRIBUTION?\">2. ARE SALARIES PAID ACCORDING TO KPIs SUBJECT TO SOCIAL INSURANCE CONTRIBUTION?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/pl-partners.vn\/en\/are-salaries-paid-according-to-kpis-subject-to-social-insurance-and-personal-income-tax-payment\/#3_ARE_SALARIES_CALCULATED_ACCORDING_TO_KPIs_SUBJECT_TO_PERSONAL_INCOME_TAX_PAYMENT\" title=\"3. ARE SALARIES CALCULATED ACCORDING TO KPIs SUBJECT TO PERSONAL INCOME TAX PAYMENT?\">3. ARE SALARIES CALCULATED ACCORDING TO KPIs SUBJECT TO PERSONAL INCOME TAX PAYMENT?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/pl-partners.vn\/en\/are-salaries-paid-according-to-kpis-subject-to-social-insurance-and-personal-income-tax-payment\/#PL_AND_PARTNERS_LAW_FIRM\" title=\"PL AND PARTNERS LAW FIRM\">PL AND PARTNERS LAW FIRM<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"1_HOW_DOES_THE_LAW_PRESCRIBE_SALARY\"><\/span><span style=\"color: #003366;\"><strong>1. HOW DOES THE LAW PRESCRIBE SALARY?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">Pursuant to <span style=\"color: #0000ff;\">Article 90 of the Labor Code 2019<\/span>: A salary is an amount the employer pays the employee under an agreement for work performed by the latter, including <strong>base salary<\/strong>, <strong>allowances,<\/strong> and <strong>other additional amounts<\/strong>. The base salary must not fall below the statutory minimum wage.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"2_ARE_SALARIES_PAID_ACCORDING_TO_KPIs_SUBJECT_TO_SOCIAL_INSURANCE_CONTRIBUTION\"><\/span><span style=\"color: #003366;\"><strong>2. ARE SALARIES PAID ACCORDING TO KPIs SUBJECT TO SOCIAL INSURANCE CONTRIBUTION?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><span style=\"color: #0000ff;\">Clause 2, Article 5 of the Law on Social Insurance 2014<\/span> stipulates: The compulsory social insurance premium shall be calculated based on an employee\u2019s <strong>monthly salary<\/strong>.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">In addition, <span style=\"color: #0000ff;\">Clause 2, Article 17 of Decree 115\/2015\/ND-CP<\/span> stipulates: MONTHLY SALARY as the basis for social insurance payment will be the <span style=\"color: #0000ff;\"><strong>salary, salary-based allowance, and other additional amounts<\/strong><\/span> mentioned in the labor contract as prescribed in the labor law.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">And in <span style=\"color: #0000ff;\">Circular 06\/2021\/TT-BLDTBXH<\/span>,<strong> other additional amounts<\/strong> subject to social insurance premium are: <strong><span style=\"color: #0000ff;\">Additional amounts<\/span>, <\/strong>which <strong><u>can be determined as specific amounts<\/u><\/strong> in addition to the salary agreed upon in the labor contract and <strong><u>are regularly paid in each pay period<\/u><\/strong>.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">Meanwhile, salary calculated according to KPIs is based on the job performance achieved by employees. On the other hand, KPIs may not be achieved by employees every month or achieved without the same results in every month. Therefore, the amounts paid according to the KPIs of each month may also be different.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong>In short<\/strong>, the salary based on KPIs is an income that can be determined as specific amounts but paid irregularly in each pay period. It depends on the level of work completion and performance of the employee. Thereby, <strong>the salary paid according to KPIs shall NOT be included in the employee&#8217;s salary as the basis for social insurance payment.<\/strong><\/span><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"3_ARE_SALARIES_CALCULATED_ACCORDING_TO_KPIs_SUBJECT_TO_PERSONAL_INCOME_TAX_PAYMENT\"><\/span><span style=\"color: #003366;\"><strong>3. ARE SALARIES CALCULATED ACCORDING TO KPIs SUBJECT TO PERSONAL INCOME TAX PAYMENT?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">According to the Law on Personal Income Tax 2007, incomes subject to personal income tax include <strong>salaries, wages, and amounts of similar nature, and allowances<\/strong>.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><span style=\"color: #0000ff;\">Point b, Clause 2 of the Law on Personal Income Tax<\/span> stipulates that the allowances <span style=\"text-decoration: underline;\"><strong>NOT SUBJECT TO PERSONAL INCOME TAX<\/strong><\/span> include: those paid under legal provisions on preferential policies for people with meritorious services; national defense and security allowances; hazard or danger allowances for working in business lines or jobs at places where exist hazardous or dangerous elements; allowances for attraction of labor, area allowance specified by law; allowances for sudden hardships, allowances for occupational accident or disease, maternity or child adoption allowances paid in a lump sum; allowances for loss of capacity for work, lump sum pension, monthly survivorship allowances, severance and job-loss allowances specified in the Labor Code, other allowances paid by the Social Insurance, and allowances not having the nature of salary, wage according to the Government\u2019s regulations.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">Thereby, it can be seen that salary paid according to KPIs is <strong>NOT INCLUDED<\/strong>\u00a0in the list of allowances exempt from Personal Income Tax. Therefore, <strong>they shall be the income subject to PIT<\/strong> and the employee shall be liable for paying tax in accordance with the law.<\/span><\/p>\n<hr \/>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">If you need legal assistance, please don&#8217;t hesitate to contact us at:<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"PL_AND_PARTNERS_LAW_FIRM\"><\/span><span style=\"color: #ed1c24;\"><strong>PL <\/strong><strong>AND<\/strong> <strong>PARTNERS<\/strong><strong> LAW FIRM<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #282828;\"><span style=\"color: #000000;\"><em><strong>Head<\/strong><strong>quarters<\/strong><strong>:<\/strong><\/em><\/span> <span style=\"color: #000000;\">46<sup>th<\/sup> Floor, Bitexco Financial Tower, No. 2 Hai Trieu, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam<\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #282828;\"><em><span style=\"color: #000000;\"><strong>O<\/strong><strong>ffice:<\/strong><\/span><\/em> <span style=\"color: #000000;\">Lot 1.16 Viva Riverside, 1472 Vo Van Kiet, Ward 3, District 6, HCMC<\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #282828;\"><em><span style=\"color: #000000;\"><strong>Hotline:<\/strong><\/span><\/em> <span style=\"color: #000000;\">093.1111.060<\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong><em>Email:\u00a0<\/em><\/strong><a style=\"color: #000000;\" href=\"http:\/\/info@pl-partners.vn\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">info@pl-partners.vn<\/a><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong><em>Facebook:<\/em><\/strong>\u00a0<a style=\"color: #000000;\" href=\"https:\/\/www.facebook.com\/PLLaw\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">www.facebook.com\/PLLaw<\/a><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong><em>Website:\u00a0<\/em><\/strong><a style=\"color: #000000;\" href=\"https:\/\/pl-partners.vn\/\"><em>www.PL-PARTNERS.vn<\/em><\/a><em> \u2013 <\/em><a style=\"color: #000000;\" href=\"http:\/\/www.hoidapluat.net\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><em>www.HOIDAPLUAT.net<\/em><\/a><em> \u2013 <\/em><a style=\"color: #000000;\" href=\"http:\/\/www.thutucphaply.org\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><em>www.THUTUCPHAPLY.org<\/em><\/a><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">We are always ready to assist you.<\/span><\/p>\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>KPI is known as a key performance indicator. Salary based on KPI is the amount paid according to the employee performance. Currently, many enterprises have applied the salary calculated according to KPI in addition to the fixed salary to promote the job performance of employees. Is salary paid based on KPIs subject to social insurance [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":2528,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[227],"tags":[],"class_list":["post-7334","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-hdl"],"_links":{"self":[{"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/posts\/7334","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/comments?post=7334"}],"version-history":[{"count":0,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/posts\/7334\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/media\/2528"}],"wp:attachment":[{"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/media?parent=7334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/categories?post=7334"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/tags?post=7334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}