1. What is the Philippine Salary Calculation?

The Philippine salary calculation determines net take-home pay by subtracting mandatory deductions (income tax, SSS, PhilHealth, and Pag-IBIG contributions) from gross salary. This calculator helps employees understand their actual monthly earnings.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Gross\ Salary \) — Total earnings before deductions (PHP/year)
• \( Income\ Tax \) — Withholding tax based on BIR tables (PHP)
• \( SSS \) — Social Security System contribution (PHP)
• \( PhilHealth \) — National health insurance contribution (PHP)
• \( Pag-IBIG \) — Home Development Mutual Fund contribution (PHP)

Explanation: The calculation accounts for all mandatory deductions required by Philippine law.

3. Importance of Salary Calculation

Details: Accurate salary calculation helps employees budget effectively and understand their compensation package. Employers must compute these deductions correctly to comply with Philippine labor laws.

4. Using the Calculator

Tips: Enter all values in PHP. For annual gross salary, divide monthly salary by 12. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why is this called "California" calculator?
A: This appears to be a typo or naming error - the calculator is specifically for Philippine salary computations.

Q2: How are SSS contributions calculated?
A: SSS contributions are based on monthly salary credit brackets, with both employee and employer sharing the contribution.

Q3: What's the current PhilHealth rate?
A: As of 2023, the premium rate is 4% of monthly salary, shared between employee and employer.

Q4: Is Pag-IBIG mandatory?
A: Yes, for all employees earning at least PHP 1,000/month, with a 2% contribution from salary (capped at PHP 100/month).

Q5: How often should salary be calculated?
A: Typically monthly, with deductions computed each pay period according to the latest BIR, SSS, PhilHealth, and Pag-IBIG guidelines.