1. What is Net Salary?

Net salary is the amount an employee takes home after all deductions (taxes, contributions, etc.) have been subtracted from the gross salary. In the Philippines, this includes income tax, SSS/GSIS, PhilHealth, and Pag-IBIG contributions.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Gross Salary — Total earnings before any deductions
• Philippine Taxes — Income tax and other government-mandated taxes
• Deductions — All other deductions (SSS, PhilHealth, Pag-IBIG, loans, etc.)

3. Importance of Net Salary Calculation

Details: Understanding your net salary helps in financial planning, budgeting, and verifying payroll computations. It's essential for employees to know their take-home pay.

4. Using the Calculator

Tips: Enter your gross salary in PHP, all applicable taxes in PHP, and other deductions in PHP. The calculator will compute your net take-home pay.

5. Frequently Asked Questions (FAQ)

Q1: What are common deductions in the Philippines?
A: Typical deductions include income tax, SSS/GSIS contributions, PhilHealth, Pag-IBIG fund, and sometimes company-specific deductions.

Q2: How is income tax calculated in the Philippines?
A: Philippines uses progressive tax rates from 0% to 35% depending on taxable income brackets.

Q3: Are bonuses included in gross salary?
A: Yes, all compensation including bonuses and allowances should be included in gross salary before deductions.

Q4: How often should I calculate my net salary?
A: It's good practice to calculate whenever there are changes in your compensation or deduction structure.

Q5: Where can I get accurate tax rates for my calculation?
A: Refer to the latest BIR (Bureau of Internal Revenue) tax tables for current rates.