Most people mistake their net take-home pay as the amount they are actually earning. Most don't take into account the job-related expenses they make. Your real earnings can be determined by deducting the job-related expenses from your net take-home pay. Transportation and meals are the typical expenses you spend every time you report to work. Other jobs might require you to spend regularly on clothes or require you to make several cellphone calls in a month.
Deducting these expenses from your net take-home pay will provide you with a more realistic figure on your actual earnings. This figure is known as your net spendable income. After computing your monthly net spendable income we need to convert it to annual net spendable income in order to add your thirteenth month and all bonuses you received for the whole year.
| Gross Salary | = Basic Salary + Allowance |
| Net Salary | = Gross Salary - Standard Deductions |
| = Gross Salary - Tax - SSS - Philhealth - Pagibig | |
| Net Monthly Spendable Income | = Net Salary - Job Related Expenses |
| Net Annual Spendable Income | = (Net Monthly Spendable Income x 12) + 13th Month + Bonuses |
