1. What is the ADP Salary Calculator?

The ADP Salary Calculator helps estimate net salary in the Philippines for 2024 by accounting for mandatory deductions including income tax, SSS, PhilHealth, and Pag-IBIG contributions.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay — Total annual salary before deductions (PHP)
• Income Tax — Computed based on BIR tax tables (PHP)
• SSS — Social Security System contributions (PHP)
• PhilHealth — Health insurance at 4% of gross pay (PHP)
• Pag-IBIG — Home Development Mutual Fund (up to PHP 100/month)

Explanation: The calculation follows standard Philippine payroll deduction rules for 2024.

3. Importance of Salary Calculation

Details: Accurate salary calculation ensures proper budgeting and financial planning for both employees and employers.

4. Using the Calculator

Tips: Enter gross annual salary in PHP, followed by each deduction amount. For PhilHealth, enter 4% of gross pay. For Pag-IBIG, enter up to PHP 1,200/year (PHP 100/month).

5. Frequently Asked Questions (FAQ)

Q1: What are the current PhilHealth rates?
A: PhilHealth contributions are 4% of monthly salary credit, shared between employee and employer.

Q2: How is SSS computed?
A: SSS contributions are based on salary brackets with employee and employer sharing the payment.

Q3: What is the maximum Pag-IBIG contribution?
A: The maximum monthly contribution is PHP 100, or PHP 1,200 annually.

Q4: Are bonuses included in gross pay?
A: Yes, all compensation including bonuses should be included in gross pay for accurate calculations.

Q5: How often should I recalculate my net pay?
A: Recalculate whenever your salary changes or when contribution rates are updated by the agencies.