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Updated at 24/05/2023 - 11:08 am

The 3P salary system is a salary system based on the employee's contribution and work performance, thereby creating fairness, and encouraging each employee to bring out their full potential at work. contribute to the development of the company.

3P salary is the method being applied in many companies in Vietnam. The goal of the 3P is to ensure internal fairness and a pay market, thereby ensuring the ability to attract, retain and motivate workers.

What is 3P salary? #

3P salary refers to a system of calculating and paying wages based on 3P structure, whereby Total salary of employees is divided into 3 parts including: 

1. Pay for Position – Pay by position. (P1)

Evaluate and determine salary based on job position – through job assessment (position / job assessment).

Paying for the job position also means that the business spends a fixed amount to pay for a specific functional position. Often referred to with the more common term "hard salary, basic salary", this salary is only affected by timekeeping and is not affected by other factors. receive that salary.

2. Pay for Person – Pay according to the individual. (P2)

Evaluate and determine salary based on individual ability

Paying according to the capacity of the person undertaking the job, that is, using the results of the assessment of human resources to determine an amount commensurate with that capacity. This salary is usually determined when negotiating a salary. This P2 salary is usually stable until the employee performance review period, if there is a change in personal capacity, there is usually an adjustment to this P2 level.

3. Pay for Performance – Pay according to performance, job completion results. (P3)

Evaluate and determine salary through employee performance evaluation.

There are many ways to name performance-based pay, such as: commission (commission), performance salary, KPI bonus, etc. It can even be in the form of quarterly and annual bonus plans.

salary 3p

Benefits of using 3P . salary mechanism #

i) Ensure internal fairness

Explain to employees questions that have not been explained before as to why the salary of positions and employees must be different.

Help employees to be aware of the issues of how to get high salary and better income, so that they can strive and compete to be effective for themselves, as well as for the business. .

ii) Ensure fairness inside and outside the business

If internal equity is a way of building a scale of scales according to P1 and P2, then external equity is the determination of market salaries paid for positions, according to each enterprise size based on market surveys. to determine the salary that suits the needs, so that businesses can attract talent through their salary policy.

iii) Creating motivation for employees and businesses

Through the 3P salary model, it encourages employees to pay more attention to the final performance results and make more contributions to limit possible risks, leading to higher employee productivity, more effectively and the enterprise pays a salary more suitable to the business situation of the enterprise from time to time.

In short, regardless of the criteria, you need to reconcile the essential needs of the employees and the benefits of the users, regardless of the criteria. labor for businesses to develop sustainably and prosper.

With the benefits that 3P salary brings, businesses should apply in their salary payment mechanism to be able to better manage the business.

Instructions to build salary according to the 3P . method #

To build a salary structure according to the 3P method, you need to build each part of those 3Ps, detailed instructions are as follows:

Step 1: Building salary bracket by position – P1

To create a position-based salary system, businesses need to build the following contents:

  • Must build the organizational structure of the business
  • Building a table of regulations on titles
  • Choose salary structure
See the article What is Salary Structure? (Understand and how to build)

After having the basic factors mentioned above, the enterprise proceeds to build a salary scale for each position (P1 for each position).

Step 2: Build a salary system according to ability – P2 

In order to have the most accurate and transparent P2 salary framework, each enterprise needs to develop a detailed competency framework and assessment system. Specifically:

  • Develop a framework for competence and corresponding salary: clarify how each position has specific competency requirements and responsibilities
  • Building and issuing a capacity assessment system: Including guidelines and regulations on how to conduct personnel evaluation in the organization and a decision-making mechanism for promotion and salary increase.


  • The pay for person salary of employees is high or low depending on what they themselves achieve in the three competency groups Knowledge (Knowledge), Skill (Skill) and Attitude (Attitude).
  • Their capacity must be associated with job requirements, ie bring work results.

Step 3: Build a performance-based salary system – P3 

To determine P3, enterprises need to perform the following tasks:

  • Defining the strategic goals of the business
  • Distributing goals down to each department
  • Allocate goals down to each job position (independent or part-time employee)
  • Build a formula for calculating salary and bonus based on KPI, work efficiency, work results
  • Perform periodic performance reviews (typically monthly/quarterly/yearly) 

Performance evaluation can be done in many forms such as: self-assessment, cross-evaluation, direct evaluation from management or partners, customers.

At the same time, performance can be assessed through the work results of the individual or the department/project in which the individual is involved, or a combination of both with appropriate weights. 

Sample salary sheet 3P #

The 3p payroll template has many forms depending on the characteristics of each business.

You can refer to the 3p salary sheet template here

Sample Salary Sheet 3P
Sample Salary Sheet 3P



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