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7 pay commission salary calculator philippines

Salary Formula:

\[ \text{Monthly Salary} = \text{Basic Pay} + \text{PERA} + \text{Allowances} - (\text{SSS} + \text{PhilHealth} + \text{PAG-IBIG} + \text{Tax}) \]

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1. What is the 7th Pay Commission Salary Calculation?

The 7th Pay Commission salary structure for Philippine government employees includes Basic Pay, PERA (Personnel Economic Relief Allowance), and various allowances, minus mandatory deductions like SSS, PhilHealth, PAG-IBIG, and tax contributions.

2. How Does the Calculator Work?

The calculator uses the following formula:

\[ \text{Monthly Salary} = \text{Basic Pay} + \text{PERA} + \text{Allowances} - (\text{SSS} + \text{PhilHealth} + \text{PAG-IBIG} + \text{Tax}) \]

Where:

  • Basic Pay — Determined by salary grade and step
  • PERA — Fixed PHP 2,000 for qualified employees
  • Allowances — Additional compensation like transportation, clothing, etc.
  • SSS — Social Security System contribution (typically 4.5% of basic pay)
  • PhilHealth — Health insurance contribution (typically 3% of basic pay)
  • PAG-IBIG — Home Development Mutual Fund contribution (typically 2% of basic pay)
  • Tax — Withholding tax based on BIR tax tables

3. Understanding Philippine Government Salary Components

Basic Pay: The foundation of compensation based on salary grade and step as per the Salary Standardization Law.
PERA: A fixed allowance to help offset inflation effects.
Allowances: May include Representation and Transportation Allowance (RATA), Hazard Pay, etc.
Mandatory Deductions: Required contributions to social security and health insurance programs.

4. Using the Calculator

Tips: Enter all amounts in PHP. For percentage-based deductions, enter the percentage rate (e.g., 4.5 for 4.5%). The calculator uses default rates for common deductions but these can be adjusted.

5. Frequently Asked Questions (FAQ)

Q1: What is the current PERA amount?
A: As of 2023, PERA is PHP 2,000 per month for qualified government employees.

Q2: Are all government employees covered by SSS?
A: No, GSIS (Government Service Insurance System) covers regular government employees while SSS covers contractual and casual employees.

Q3: How is the tax rate determined?
A: Tax rates follow the BIR's graduated tax table based on taxable income after non-taxable allowances and exemptions.

Q4: What's the difference between basic pay and gross salary?
A: Basic pay is the fixed amount based on salary grade, while gross salary includes all allowances before deductions.

Q5: Are all allowances taxable?
A: No, some allowances like PERA and de minimis benefits are non-taxable up to certain limits.

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