1. What is Monthly Net Pay?

Monthly net pay is the amount of money an employee takes home after all deductions (taxes, contributions) have been subtracted from their gross salary. In the Philippines, common deductions include income tax, SSS, PhilHealth, and Pag-IBIG contributions.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Hourly Wage — Employee's pay rate per hour (PHP)
• Hours per Week — Typical weekly working hours
• 52 — Number of weeks in a year
• Income Tax — Annual income tax amount
• SSS — Social Security System contribution
• PhilHealth — 4% of gross income (health insurance)
• Pag-IBIG — Up to PHP 100/month (housing fund)

3. Importance of Salary Calculation

Details: Understanding your net pay helps with financial planning, budgeting, and ensuring you're being compensated correctly. It's essential for comparing job offers and managing personal finances.

4. Using the Calculator

Tips: Enter your hourly wage in PHP, typical hours worked per week, estimated annual income tax, and SSS contribution. The calculator will estimate your monthly take-home pay after all mandatory deductions.

5. Frequently Asked Questions (FAQ)

Q1: How accurate is this calculator?
A: It provides a good estimate but actual take-home pay may vary based on specific tax brackets, exact contribution rates, and other factors.

Q2: What's the current PhilHealth rate?
A: As of 2023, PhilHealth contribution is 4% of monthly salary, with a minimum of PHP 400 and maximum of PHP 3,200 per month.

Q3: How is Pag-IBIG calculated?
A: Pag-IBIG contribution is typically PHP 100/month for employees earning PHP 5,000/month or more. Lower earners pay 1% of salary.

Q4: What about 13th month pay?
A: This calculator shows regular monthly pay. 13th month pay (equal to 1 month's salary) is usually paid in December separately.

Q5: Are overtime payments included?
A: No, this calculates base salary only. Overtime would be additional to this amount.