The Taxberg
₱ 61
Net pay
₱ 5
Tax the employer pays
₱ 4
Tax you pay
Total tax paid
₱ 9
Did you know your employer also pays tax on your salary? It costs the employer ₱ 5 to pay you ₱ 65. In other words, every time you spend ₱ 10 of your hard-earned money, ₱ 1.37 goes to the government.
Real tax rate
So, with you and the employer both paying tax, what used to be a 6.5% tax rate now rises to 12.7%, meaning your real tax rate is actually 6.2% higher than what it seemed at first.