Salary calculation, PPh 21 withholding, and payslip preparation are crucial parts of payroll management that must be carried out carefully and accurately. By ensuring compliance with applicable regulations and providing transparent information to employees, companies can enhance employee satisfaction, minimize legal risks, and support financial transparency.
PPh 21 is an income tax levied on the income received by employees. The calculation of PPh 21 is performed monthly based on the employee’s gross income after allowable deductions such as job expenses and pension contributions.
Calculation Process:
Gross Income: Calculate the total gross income of the employee, including basic salary, allowances, and bonuses.
Deductions: Subtract allowable deductions such as job expenses, pension contributions, and other legally permitted deductions from the gross income.
Net Income: Determine the net income after deductions.
PPh 21 Calculation: Calculate the PPh 21 due based on the applicable progressive tax rates.
