Salary Tax Calculator (Employee payslip)
This is a simple salary tax calculator that can be used to calculate your salary after tax.
Annually
Monthly
Weekly
Daily
Tax deductions at different frequencies for the salary
| Salary | Frequency | Tax Amount | Tax Rate |
|---|---|---|---|
| ₱0.00 | monthly | ₱0.00 | 0% |
Detailed breakdown of Monthly Deductions and Net Salary
Employee Contributions (Deducted from Salary)
| Monthly Contribution | Amount |
|---|---|
| Employee SSS contribution | ₱0.00 |
| PhilHealth Employee Contribution | ₱0.00 |
| Pag-IBIG Employee Contribution | ₱0.00 |
| Monthly Tax | ₱0.00 |
| Total Employee Deductions | ₱0.00 |
Employer Contributions (Not deducted from salary)
| Monthly Contribution | Amount |
|---|---|
| Employer SSS contribution | ₱0.00 |
| PhilHealth Employer Contribution | ₱0.00 |
| Pag-IBIG Employer Contribution | ₱0.00 |
| Total Employer Contributions | ₱0.00 |
Net Salary₱0.00
* After deducting employee contributions and taxes
Understanding Salary Calculations in the Philippines
Calculating an employee's take-home pay in the Philippines involves a few key components:
- Gross Salary: This is the agreed-upon total income before any deductions or taxes. It's the starting point for all salary calculations.
- Tax-Exempt Allowances: Some types of income like transportation allowances or cost-of-living allowances might be exempted from income tax. These reduce your taxable income.
- Income Tax: The Philippine government uses a progressive income tax system. This means the more you earn, the higher percentage of your income is taxed. Tax brackets and rates are updated periodically and can be found on the BIR website.
- Mandatory Contributions: Philippine employers and employees are required to make payments to these three government programs:
- SSS (Social Security System): This system provides retirement, sickness, disability, and survivor benefits to members. Contributions are a percentage of salary, shared by the employer and employee.
- PhilHealth (Philippine Health Insurance Corporation): This national health insurance program ensures Filipinos have access to affordable healthcare. Contributions are a percentage of salary, shared by the employer and employee.
- Pag-IBIG (Pagtutulungan sa Pabahay ng Manggagawa): This fund allows Filipinos to save and obtain affordable housing loans. Contributions are a percentage of salary, shared by the employer and employee.
How Income Tax Calculations Work
- Determine Taxable Income: Subtract tax-exempt allowances and mandatory contributions (SSS, Philhealth, Pag-IBIG) from the employee's gross salary.
- Apply Income Tax Brackets: The BIR provides a set of tax brackets with corresponding tax rates. Your taxable income determines which bracket you fall into.
- Calculate Income Tax: Multiply the portion of your taxable income within each bracket by the corresponding tax rate. Sum the results to find your total income tax.
Simplified Example
Let's assume an employee has a gross salary of ₱30,000 per month, with no tax-exempt allowances. Sample contributions could be:
- SSS: ₱1,125 (employer & employee contributions combined)
- Philhealth: ₱600
- Pag-IBIG: ₱100
- Taxable Income: ₱30,000 (gross) - ₱1,125 (SSS) - ₱600 (Philhealth) - ₱100 (Pag-IBIG) = ₱28,175
- Tax Bracket: This income likely falls in an income bracket taxed at 20%.
- Income Tax: (Using a simplified calculation), income tax could be around ₱28,175 * 0.20 = ₱5,635
Net Pay
Finally, subtract total income tax and mandatory contributions from the gross salary:
₱30,000 - ₱5,635 - ₱1,125 - ₱600 - ₱100 = ₱22,540 (estimated net pay)
Important Note: This is just a simplified example. Always use a reliable salary calculator or refer to the official BIR website for the most accurate and up-to-date tax information.
Frequently asked questions
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