1. What is Salary Computation?

The salary computation calculates take-home pay by deducting mandatory contributions (SSS, PhilHealth, Pag-IBIG) and income tax from gross salary. This helps employees understand their actual in-hand salary after all deductions.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Gross Salary — Total salary before deductions
• Income Tax — Based on 2025 Philippine tax brackets
• SSS — Social Security System contribution
• PhilHealth — Health insurance contribution (2.75% of gross salary)
• Pag-IBIG — Home Development Mutual Fund contribution (100 PHP/month)

3. Importance of Salary Computation

Details: Understanding salary computation helps in financial planning, ensures correct deductions, and helps employees verify their payslips for accuracy.

4. Using the Calculator

Tips: Enter your annual gross salary in PHP. The calculator will compute all mandatory deductions and your net take-home pay for 2025.

5. Frequently Asked Questions (FAQ)

Q1: Are these the exact 2025 rates?
A: This uses projected 2025 rates based on current trends. Actual rates may vary slightly when officially announced.

Q2: Why is my SSS deduction fixed?
A: We use the maximum SSS contribution for calculation. Actual may vary based on your salary bracket.

Q3: Is Pag-IBIG always 100 PHP/month?
A: Yes, the minimum Pag-IBIG contribution is fixed at 100 PHP per month for employed members.

Q4: What about other deductions?
A: This calculator only includes mandatory deductions. Other deductions (loans, insurance, etc.) would further reduce take-home pay.

Q5: How often are tax brackets updated?
A: Tax brackets are typically updated every few years. The 2025 brackets are projected based on current TRAIN law.