From monthly salary to one hour
Four steps sit between your salary and what an hour is really worth. Here is each one.
Your monthly salary divided by the hours you work. This is the payslip figure, before anything is taken out.
salary ÷ hoursSSS, PhilHealth, and Pag-IBIG come out of your monthly pay first. Spread across your hours, they lower what each one is really worth.
SSS · PH · PIIncome tax under the TRAIN law, applied to what is left after contributions. The rate rises with income, so higher salaries lose a bit more per hour.
0 to 35%Net take-home pay divided by the same hours. This is what an hour of your time actually puts in your pocket.
net ÷ hoursQuestions people ask
answered in plain wordsYour real hourly rate is what one hour of your work is actually worth after deductions. It takes your monthly take-home pay, the amount left after SSS, PhilHealth, Pag-IBIG, and withholding tax, and divides it by the hours you work in a month. It is usually lower than the figure you get from dividing your gross salary, because it counts what reaches you rather than what you earn on paper.