1. What is the ADP Annual Salary Calculator?

The ADP Annual Salary Calculator estimates net pay in the Philippines by calculating deductions including income tax, SSS, PhilHealth, and Pag-IBIG contributions from gross annual salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay — Annual salary before deductions (PHP/year)
• Income Tax — Based on Philippine tax brackets
• SSS — Social Security System employee contribution
• PhilHealth — 2% of monthly salary (employer pays the other 2%)
• Pag-IBIG — Fixed PHP 100/month contribution

3. Importance of Salary Calculation

Details: Accurate salary calculation helps employees understand their take-home pay and employers ensure proper withholding and remittance of mandatory contributions.

4. Using the Calculator

Tips: Enter gross annual salary in PHP. The calculator will compute all mandatory deductions and display the net annual salary.

5. Frequently Asked Questions (FAQ)

Q1: Are these calculations exact?
A: This provides estimates based on standard rates. Actual deductions may vary slightly based on specific circumstances.

Q2: What are the current tax brackets in the Philippines?
A: For 2023: 0% up to 250k, 15% up to 400k, 20% up to 800k, 25% up to 2M, 30% up to 8M, 35% above 8M.

Q3: How is SSS contribution calculated?
A: Based on monthly salary ranges with increasing contributions for higher salary brackets.

Q4: Is PhilHealth really 4%?
A: Yes, but shared 50-50 between employee and employer (2% each).

Q5: Why is Pag-IBIG fixed at 100/month?
A: This is the standard employee contribution for those earning above 1500/month.