What are differences between wage/salary and income? - Lương và thu nhập khác nhau như thế nào?

 Most people still feel confused about these two definitions. After reading this article, readers may find significant differences between wage/salary and income of a person.

 Both wage/salary and income are earned by the provision of labor. So, let's see regulations of the 2012 Labor Code currently in force regarding the compensation package that a worker or employee can receive by providing his/her labor:

 


    “Article 90. Wage/salary

     1. Wage/salary refers to a sum of money that an employer pays a worker or employee for an agreed-upon work.

     Wage/salary includes the work or title-based pay rate, allowances and other supplemental benefit package.

     …”

 Therefore, whenever a labor relationship between 2 persons, including 1 employers and 1 employee arises, wage/salary will be deemed as a sum of money “swapped” for an employee’s labor and paid by an employer.

 In addition, wage/salary may be understood as a monthly amount that an employee receives after fulfillment of assigned job duties. Wage/salary may be fixed or changeable, depending on employee’s competence and advancement. However, it might be increased, decreased or even paid nothing if employer’s business prospers or goes down due to none of revenue to be gained.

 * Income:

 Although income is, in essence, the same as wage/salary, its meaning is broader. An employee's income is all what he/she earns from the provision of his/her own labor, including wage/salary, bonuses or shift meal benefits, etc.

 In the aspect of labor theories, while the sum of money that an employee receives is, in nature, not a “swapped” article but exists according to an agreement, or is decided of an employer's free will, to serve the purposes of supporting and rewarding an employee for his/her rendered labor, income is the total of sums. This fact means that income comprises wage/salary. 

 Notwithstanding the regulations laid down in this Law, income may be earned through other social relationships, such as trading, rendering services, winning prizes or inheriting, etc. This means that income encompasses all what a person may receive as an addition to his/her property.

>>> Reading in Vietnamese: Lương và thu nhập khác nhau như thế nào?

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