1. What is In-Hand Salary?

In-Hand Salary is the actual amount an employee takes home after all deductions like income tax, SSS, PhilHealth, and Pag-IBIG contributions have been subtracted from the gross salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total salary before deductions (PHP/year)
• Income Tax — Tax deducted based on income bracket (PHP)
• SSS — Social Security System contribution (PHP)
• PhilHealth — Health insurance contribution (4% of salary, PHP)
• Pag-IBIG — Home Development Mutual Fund contribution (up to PHP 100/month)

Explanation: The calculation accounts for all mandatory deductions in the Philippines to determine the actual take-home pay.

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, budgeting, and ensuring you're receiving the correct compensation after all legal deductions.

4. Using the Calculator

Tips: Enter your gross annual salary in PHP, followed by your income tax amount, SSS contribution, PhilHealth contribution (typically 4% of salary), and Pag-IBIG contribution (maximum PHP 100/month).

5. Frequently Asked Questions (FAQ)

Q1: How is income tax calculated in the Philippines?
A: Income tax is progressive, with rates from 0% to 35% depending on your taxable income bracket.

Q2: Is PhilHealth always 4% of salary?
A: Yes, PhilHealth contribution is currently 4% of monthly salary, shared between employee and employer.

Q3: What's the maximum Pag-IBIG contribution?
A: The maximum monthly Pag-IBIG contribution is PHP 100 for employees earning PHP 5,000 and above.

Q4: Are there other deductions not included here?
A: This calculator covers mandatory deductions. Some employers may deduct additional items like loans or benefits.

Q5: How often should I calculate my in-hand salary?
A: You should check whenever there are changes in your gross salary, tax laws, or contribution rates.