Salary Formula:
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.
The calculator uses the following formula:
Where:
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.
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.
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.