1. What is Commission-Based Salary?

Commission-based salary is a compensation structure common in sales positions where employees receive a base salary plus a percentage of the sales they generate. This model incentivizes higher performance while providing some income stability.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Base Salary — Fixed monthly salary in PHP
• Sales Amount — Total value of sales made in PHP
• Commission Rate — Percentage of sales paid as commission
• Tax — Any applicable tax deductions in PHP

3. Understanding the Components

Base Salary: The guaranteed minimum pay regardless of sales performance.
Commission: Variable pay calculated as percentage of sales.
Tax: Mandatory deductions which may include income tax, SSS, PhilHealth, and Pag-IBIG contributions in the Philippines.

4. Using the Calculator

Instructions: Enter all values in PHP. For commission rate, enter the percentage value (e.g., for 5%, enter 5). Tax field can be set to 0 if no deductions apply.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical commission rate in the Philippines?
A: Commission rates vary by industry but typically range from 1% to 20% of sales value.

Q2: How are taxes calculated in the Philippines?
A: Taxes follow progressive rates from 0% to 35% based on income brackets, plus mandatory contributions.

Q3: Is commission taxed differently from base salary?
A: No, all compensation is combined for tax calculation in the Philippines.

Q4: What if my commission exceeds certain thresholds?
A: Some companies have commission caps or graduated rates that change at certain sales levels.

Q5: Are there minimum wage requirements?
A: Yes, the base salary must meet regional minimum wage requirements in the Philippines.