The Taxberg
₱ 14
Net pay
₱ 1
Tax the employer pays
₱ 1
Tax you pay
Total tax paid
₱ 2
Did you know your employer also pays tax on your salary? It costs the employer ₱ 1 to pay you ₱ 15. In other words, every time you spend ₱ 10 of your hard-earned money, ₱ 1.55 goes to the government.
Real tax rate
So, with you and the employer both paying tax, what used to be a 8.1% tax rate now rises to 14.4%, meaning your real tax rate is actually 6.3% higher than what it seemed at first.