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 mandatory deductions like SSS, PhilHealth, and Pag-IBIG contributions.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( \text{Gross Salary} \) — Total salary before any deductions (PHP)
• \( \text{Philippine Taxes} \) — Income tax and other government-mandated taxes (PHP)
• \( \text{Deductions} \) — Other deductions like SSS, PhilHealth, Pag-IBIG, loans, etc. (PHP)

Explanation: The formula subtracts all mandatory and voluntary deductions from the gross salary to determine the actual take-home pay.

3. Importance of Net Salary Calculation

Details: Understanding net salary helps employees budget effectively and ensures employers comply with Philippine labor laws regarding proper compensation and deductions.

4. Using the Calculator

Tips: Enter gross salary in PHP, followed by total taxes and other deductions. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are common deductions in the Philippines?
A: Common deductions include income tax, SSS contributions, PhilHealth, Pag-IBIG fund, and sometimes union dues or company loans.

Q2: How is income tax calculated in the Philippines?
A: Philippines uses progressive tax rates from 0% to 35% depending on taxable income, with various exemptions and special rates.

Q3: Are there differences between monthly and annual calculations?
A: Yes, some deductions are capped monthly while taxes are calculated based on cumulative annual income with adjustments each pay period.

Q4: What's the difference between this and UK salary calculations?
A: The UK has different tax brackets, National Insurance instead of SSS, and different mandatory contribution systems.

Q5: Can this calculator handle special tax situations?
A: This provides a basic calculation. For special cases (13th month pay, bonuses, multiple jobs), consult a Philippine tax professional.