Employment Contract question

[woofers]

I'm in the process of finalizing my employment contract with a company I'm joining next January. Looking over the draft they sent me, my salary is stated as a NET amount. I'm used to seeing it stated as gross (before taxes, deductions, etc.).

Will it be to my advantage to have the gross salary in the contract instead of net amount?

[KuyaDanny]

Yes and no. :lol:

In case the tax rates rise, your gross gets automatically adjusted to preserve your net (advantage to you). But in case you get more exemptions (i e, dependents) during the contract term, instead of an increase in take home pay, your net would stay the same (disadvantage to you).

What matters is that however they state your compensation, they must disclose GROSS in government filings. That figure is the basis for, among other things, SSS contributions, retirement pay, and separation benefits.

[woofers]

Originally posted by KuyaDanny
Yes and no. :lol:

In case the tax rates rise, your gross gets automatically adjusted to preserve your net (advantage to you). But in case you get more exemptions (i e, dependents) during the contract term, instead of an increase in take home pay, your net would stay the same (disadvantage to you).


Thanks, KuyaDanny!

[Jonga]

i wish my contract would state that i will not receive any form of salary, instead, will give me an allowance package equal to my worth...hehehe, no tax yun dba?

[LodRose]

di rin ah.

may limit ang allowance na nde subject to taxation.

[bishop]

^yup. from what i heard, allowances over 30k annually are subjected to tax.