1. What is Salary and Tax Calculation?

The Salary and Tax Calculator estimates your net take-home pay after deducting mandatory contributions (SSS, PhilHealth, Pag-IBIG) and income tax based on Philippine tax laws.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Gross — Your total salary before deductions
• Tax — Computed based on BIR tax tables
• SSS — Social Security System contribution
• PhilHealth — Philippine Health Insurance contribution
• Pag-IBIG — Home Development Mutual Fund contribution

3. Importance of Salary Calculation

Details: Understanding your net salary helps with financial planning, budgeting, and ensuring correct deductions from your employer.

4. Using the Calculator

Tips: Enter your gross monthly salary, select your tax status, and indicate dependents for more accurate tax computation.

5. Frequently Asked Questions (FAQ)

Q1: Are these calculations exact?
A: This provides estimates. Actual deductions may vary based on specific employer policies and exact contribution tables.

Q2: What's the tax-free threshold?
A: For 2023, annual income below ₱250,000 is tax-exempt for all employees.

Q3: How often are SSS contributions paid?
A: Monthly, with both employee and employer sharing the contribution.

Q4: Can I change my tax status during the year?
A: Yes, by filing BIR Form 2305 with your employer when your status changes.

Q5: Are bonuses included in gross salary?
A: For this calculator, enter only your regular monthly salary. Bonuses have different tax treatments.