1. Philippine Government Salary Components

Government employee salaries in the Philippines consist of:

• Basic Pay: Determined by salary grade and step
• PERA (Personnel Economic Relief Allowance): PHP 2,000/month for all government employees
• Allowances: May include subsistence, laundry, hazard pay, etc.
• Deductions: Mandatory contributions (SSS/GSIS, PhilHealth, PAG-IBIG) and withholding tax

2. How the Calculator Works

The calculator uses the following formula:

Default Contribution Rates (2024):

• SSS: 4.5% of gross salary
• PhilHealth: 4% of gross salary
• PAG-IBIG: 2% of gross salary
• Tax: Varies based on income bracket (0-35%)

3. Understanding Your Payslip

Gross Salary: Total earnings before deductions
Net Salary: Take-home pay after all deductions
Note: Actual payslips may include additional allowances and deductions not accounted for in this calculator.

4. Using the Calculator

Instructions:

1. Enter your basic monthly salary (from your salary grade)
2. Add PERA (default: PHP 2,000)
3. Include any additional monthly allowances
4. Adjust contribution percentages if different from defaults
5. Enter applicable tax rate

5. Frequently Asked Questions (FAQ)

Q1: Is PERA taxable?
A: No, PERA is tax-exempt up to PHP 2,000 per month.

Q2: What's the difference between SSS and GSIS?
A: GSIS is for government employees, SSS is for private sector. This calculator uses SSS rates for demonstration.

Q3: How is withholding tax calculated?
A: Tax rates follow the graduated income tax table (0-35% based on taxable income).

Q4: Are all government allowances taxable?
A: Most allowances are taxable, except for specific exempt allowances like PERA.

Q5: Where can I find my salary grade information?
A: Refer to the latest Salary Standardization Law or check with your HR department.