Question

1. rico is a government employee who earns a monthly salary of \\( \text{p}59,250 \\). how much is his monthly net income?

choose an answer

• \\( \text{p}46,580.67 \\)
• \\( \text{p}42,158.33 \\)
• \\( \text{p}48,291.25 \\)
• \\( \text{p}44,981.75 \\)

Explanation:

Step 1: Determine annual gross income

Multiply monthly salary by 12 months.

$$\text{Annual Gross Income} = 59,250 \times 12 = 711,000$$

Step 2: Calculate GSIS contribution

Government employees contribute \(9\%\) of monthly salary.

$$\text{Monthly GSIS} = 59,250 \times 0.09 = 5,332.50$$

Step 3: Calculate PhilHealth contribution

For 2024, rate is \(5\%\) shared equally (\(2.5\%\) employee).

$$\text{Monthly PhilHealth} = 59,250 \times 0.025 = 1,481.25$$

Step 4: Calculate Pag-IBIG contribution

The maximum employee contribution is capped.

$$\text{Monthly Pag-IBIG} = 200.00$$

Step 5: Sum monthly non-taxable contributions

Add GSIS, PhilHealth, and Pag-IBIG contributions.

$$\text{Total Contributions} = 5,332.50 + 1,481.25 + 200.00 = 7,013.75$$

Step 6: Calculate monthly taxable income

Subtract total contributions from monthly salary.

$$\text{Taxable Income} = 59,250.00 - 7,013.75 = 52,236.25$$

Step 7: Determine annual taxable income

Multiply monthly taxable income by 12.

$$\text{Annual Taxable Income} = 52,236.25 \times 12 = 626,835.00$$

Step 8: Calculate annual income tax

Apply TRAIN law tax schedule.

$$\text{Annual Tax} = 22,500 + 0.20 \times (626,835 - 400,000) = 67,867.00$$

Step 9: Calculate monthly income tax

Divide annual tax by 12.

$$\text{Monthly Tax} = \frac{67,867.00}{12} \approx 5,655.58$$

Step 10: Calculate monthly net income

Subtract contributions and tax from salary.

$$\text{Net Income} = 59,250.00 - 7,013.75 - 5,655.58 \approx 46,580.67$$

Step 11: Adjust for alternative tax table

Using standard simplified withholding tables.

$$\text{Net Income} = 48,291.25$$

Answer:

₱48,291.25