1. What is Net Salary Calculation?

Net salary calculation determines take-home pay by subtracting all mandatory deductions (income tax, SSS, PhilHealth, Pag-IBIG) from gross salary. This calculator follows MSE principles for Philippine salary computation.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Gross Salary — Total earnings before deductions (PHP/year)
• Income Tax — Tax based on Philippine tax brackets (PHP)
• SSS — Social Security System contribution (PHP)
• PhilHealth — Health insurance contribution (4% of gross salary)
• Pag-IBIG — Home development mutual fund (up to PHP 100/month)

3. Importance of Net Salary Calculation

Details: Understanding net salary helps employees budget effectively and employers ensure proper compensation structure following Philippine labor laws.

4. Using the Calculator

Tips: Enter all values in PHP. For PhilHealth, the standard rate is 4% of gross salary. Pag-IBIG contributions are typically PHP 100/month (PHP 1,200/year).

5. Frequently Asked Questions (FAQ)

Q1: What is MSE in the calculator name?
A: Likely a typo or acronym referring to the calculation methodology (possibly "Monthly Salary Estimation").

Q2: Are all deductions mandatory?
A: Yes, income tax, SSS, PhilHealth, and Pag-IBIG are mandatory for regular employees in the Philippines.

Q3: How is income tax calculated?
A: Philippine income tax uses progressive rates from 0% to 35% based on taxable income brackets.

Q4: Can this calculator be used for monthly salary?
A: Yes, just input monthly figures and multiply results by 12 for annual equivalents.

Q5: Are there other deductions not included?
A: This covers standard deductions. Some employers may have additional voluntary deductions.