1. What is Total Compensation?

Total compensation represents the complete financial package an employee receives, including salary and mandatory benefits (SSS, PhilHealth, and Pag-IBIG) in the Philippines.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Salary \) — Base annual salary in Philippine Pesos
• \( SSS \) — Social Security System contributions
• \( PhilHealth \) — Philippine Health Insurance contributions
• \( Pag-IBIG \) — Home Development Mutual Fund contributions

Explanation: The equation sums all components of an employee's compensation package to show the total value provided by the employer.

3. Importance of Compensation Calculation

Details: Understanding total compensation helps employees appreciate their full benefits package and allows employers to accurately represent employment costs.

4. Using the Calculator

Tips: Enter all values in Philippine Pesos (PHP). Input annual salary and monthly contributions for SSS, PhilHealth, and Pag-IBIG.

5. Frequently Asked Questions (FAQ)

Q1: What is included in total compensation?
A: In this calculator, it includes base salary plus mandatory benefits (SSS, PhilHealth, and Pag-IBIG).

Q2: Are bonuses included in this calculation?
A: This calculator focuses on regular compensation. Bonuses would need to be added separately.

Q3: How often should contributions be updated?
A: Contribution rates may change annually, so verify current rates with each agency.

Q4: Are these contributions tax-deductible?
A: Yes, SSS, PhilHealth, and Pag-IBIG contributions are generally tax-exempt up to certain limits.

Q5: What's the difference between gross and total compensation?
A: Gross pay is before deductions, while total compensation includes all benefits provided by the employer.