1. What is In Hand Salary?

In Hand Salary (or Net Salary) is the amount an employee actually takes home after all deductions like taxes, social security contributions, and other withholdings have been subtracted from the Gross Salary.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Gross Salary — Total salary before any deductions (PHP)
• Philippine Taxes — Income tax and other government-mandated contributions (PHP)
• Deductions — Other deductions like SSS, PhilHealth, Pag-IBIG, loans, etc. (PHP)

Explanation: The calculation subtracts all mandatory and voluntary deductions from the gross salary to determine the actual take-home pay.

3. Importance of Salary Calculation

Details: Understanding your net salary helps in financial planning, budgeting, and ensuring proper tax withholding. It's essential for employees to verify their payslips and for employers to calculate correct compensation.

4. Using the Calculator

Tips: Enter your gross monthly salary in PHP, followed by the total taxes and other deductions. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are common deductions in the Philippines?
A: Common deductions include income tax, SSS contributions, PhilHealth, Pag-IBIG fund, and possibly union dues or company loans.

Q2: How is income tax calculated in the Philippines?
A: Philippines uses progressive tax rates from 0% to 35% depending on taxable income. Tax computation is complex and considers various factors.

Q3: What's the difference between gross and net salary?
A: Gross salary is total compensation before deductions, while net salary is the actual amount received after all deductions.

Q4: Are bonuses included in gross salary?
A: Regular bonuses are typically part of gross salary and subject to deductions, but some special bonuses may have different tax treatment.

Q5: How often should I check my deductions?
A: It's good practice to verify deductions each pay period, especially after any changes in tax laws or contribution rates.