1. What is Philippine Salary Calculation?

The Philippine salary calculation involves deducting mandatory contributions (SSS, PhilHealth, Pag-IBIG) and income tax from gross salary. The exact amounts depend on salary level and sometimes region.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Gross\ Salary \) — Annual salary before deductions
• \( Income\ Tax \) — Based on Philippine progressive tax rates
• \( SSS \) — Social Security System contribution
• \( PhilHealth \) — 4% of monthly salary (shared 50-50)
• \( Pag-IBIG \) — PHP 100/month maximum

3. Importance of Salary Calculation

Details: Accurate salary calculation helps employees understand their take-home pay and employers comply with Philippine labor laws and tax regulations.

4. Using the Calculator

Tips: Enter your annual gross salary in PHP and select your region. The calculator will compute all mandatory deductions and your net annual salary.

5. Frequently Asked Questions (FAQ)

Q1: Why does region matter in salary calculation?
A: While most deductions are national, some benefits and minimum wages vary by region.

Q2: Are these calculations accurate for all employees?
A: This is for regular employees. Self-employed and OFWs have different contribution schemes.

Q3: How often are contribution rates updated?
A: SSS and PhilHealth rates change occasionally. Check with the respective agencies for updates.

Q4: What about 13th month pay?
A: This calculator shows regular deductions. 13th month pay is tax-exempt up to PHP 90,000.

Q5: Are there other deductions not included?
A: Yes, this doesn't include voluntary deductions like union dues or loan payments.