1. What is Commission-Based Pay?

Commission-based pay is a compensation system where employees earn a percentage of the sales they generate. In Vietnam, this is common in retail, real estate, and other sales-oriented industries.

2. How the Calculator Works

The calculator uses these formulas:

Where:

• Sales Amount — Total sales in Vietnamese Dong (VND)
• Commission Rate — Percentage of sales paid as commission
• Tax — Percentage deducted from commission as tax

3. Commission Pay in Vietnam

Details: In Vietnam, commission rates typically range from 1% to 20% depending on industry. Personal income tax rates vary from 5% to 35% based on income level.

4. Using the Calculator

Tips: Enter sales amount in VND, commission rate as percentage (e.g., 10 for 10%), and tax rate as percentage. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's a typical commission rate in Vietnam?
A: Rates vary by industry - retail often 1-5%, real estate 1-3%, luxury goods 5-20%.

Q2: How is tax calculated on commissions?
A: In Vietnam, commissions are taxable income subject to progressive tax rates from 5% to 35%.

Q3: Are commissions taxed differently from salary?
A: No, commissions are considered part of taxable income and taxed at the same rates.

Q4: When are commissions typically paid?
A: Most companies pay monthly, though some pay bi-weekly or upon project completion.

Q5: Are there minimum wage requirements for commission workers?
A: Yes, Vietnam requires that commission workers earn at least the regional minimum wage.