1. What is the Salary Calculation?

The salary calculation determines the net pay for UNDP staff in the Philippines by subtracting mandatory deductions (Income Tax, SSS, PhilHealth, and Pag-IBIG) from the gross salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Gross\ Pay \) — Total salary before deductions (PHP/year)
• \( Income\ Tax \) — Tax based on Philippine brackets (0% up to PHP 250,000)
• \( SSS \) — Social Security System contribution
• \( PhilHealth \) — Philippine Health Insurance Corporation contribution (4%)
• \( Pag-IBIG \) — Home Development Mutual Fund contribution (up to PHP 100/month)

3. Importance of Net Pay Calculation

Details: Accurate net pay calculation helps employees understand their take-home salary and plan their finances accordingly.

4. Using the Calculator

Tips: Enter all values in PHP. Gross pay should be annual amount. PhilHealth is typically 4% of gross salary. Pag-IBIG is capped at PHP 100 per month.

5. Frequently Asked Questions (FAQ)

Q1: What are the current income tax brackets in the Philippines?
A: First PHP 250,000 is tax-free, then progressive rates up to 35% for amounts over PHP 8 million.

Q2: How is SSS contribution calculated?
A: SSS contributions are based on monthly salary credit and have both employee and employer shares.

Q3: Is PhilHealth always 4%?
A: Yes, PhilHealth contribution is currently 4% of gross salary, shared between employee and employer.

Q4: What's the maximum Pag-IBIG contribution?
A: PHP 100 per month is the maximum employee contribution for Pag-IBIG.

Q5: Are there other deductions not included here?
A: This calculator includes standard deductions. Some employers may have additional deductions like union dues or loans.