salary and commission calculator philippines

Salary and Commission Formula:

\[ \text{Total Pay} = \text{Salary} + \left(\frac{\text{Sales Amount} \times \text{Commission Rate}}{100}\right) - \left(\text{SSS} + \text{PhilHealth} + \text{PAG-IBIG} + \text{Tax}\right) \]

Base Salary:

PHP

Sales Amount:

PHP

Commission Rate:

SSS Contribution:

PhilHealth Contribution:

PAG-IBIG Contribution:

Tax Rate:

Total Pay:

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1. What is the Salary and Commission Calculator?

This calculator helps employees in the Philippines who earn both a base salary and sales commission to estimate their total take-home pay after mandatory deductions. It accounts for base salary, commission earnings, and standard Philippine deductions (SSS, PhilHealth, PAG-IBIG, and tax).

2. How Does the Calculator Work?

The calculator uses the following formula:

\[ \text{Total Pay} = \text{Salary} + \left(\frac{\text{Sales Amount} \times \text{Commission Rate}}{100}\right) - \left(\text{SSS} + \text{PhilHealth} + \text{PAG-IBIG} + \text{Tax}\right) \]

Where:

Salary — Base monthly salary in PHP
Sales Amount — Total sales in PHP
Commission Rate — Percentage of sales earned as commission
SSS — Social Security System contribution (percentage)
PhilHealth — Philippine Health Insurance contribution (percentage)
PAG-IBIG — Home Development Mutual Fund contribution (percentage)
Tax — Withholding tax rate (percentage)

3. Understanding Philippine Salary Components

Salary: Fixed amount paid regularly regardless of sales performance.
Commission: Variable earnings based on sales performance.
SSS: Social security benefits including retirement, disability, and death benefits.
PhilHealth: National health insurance program.
PAG-IBIG: Savings program that provides housing loans.
Tax: Withholding tax based on compensation level.

4. Using the Calculator

Tips: Enter all values in PHP for monetary amounts and percentages for rates. Ensure all values are positive numbers within reasonable ranges.

5. Frequently Asked Questions (FAQ)

Q1: Are the deduction rates fixed?
A: No, rates may vary based on salary brackets and updated government policies. Check latest rates from respective agencies.

Q2: Is commission taxed differently from salary?
A: In the Philippines, commission is typically taxed as part of regular income, but consult a tax professional for specific cases.

Q3: What are typical commission rates in the Philippines?
A: Rates vary by industry but commonly range from 1% to 15% of sales, sometimes with tiered structures.

Q4: Are there other deductions not included here?
A: Yes, some employers may deduct for loans, uniforms, or other benefits. This calculator covers only mandatory government deductions.

Q5: How often should I calculate my expected pay?
A: Recommended monthly, especially if your sales vary significantly or when deduction rates change.