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PPh 21 Gross-Up Calculator
Compute the tax allowance (gross-up) so the company bears PPh 21 and the employee gets full pay. TER-based estimate. Free.
Note
Gross-up method: the company adds a tax allowance equal to PPh 21, so the employee receives full pay. Estimate uses the monthly TER. An estimate, not official tax/legal advice. Rules can change — consult a tax advisor or HR/labor-law professional.
PPh 21 gross-up
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Understanding gross-up
Gross-up method
The company gives a tax allowance equal to the PPh 21 due. After withholding, the employee receives full pay — the company bears the tax.
Computed iteratively
Because the tax allowance increases the gross income that forms the tax base, its value is computed repeatedly (iteratively) until the allowance exactly covers the resulting tax.
Different from a plain borne-tax
In gross-up, the tax allowance is part of gross income (raising the tax base). This differs from 'company-borne tax' that doesn't add to gross — choose per policy.
FAQ
Frequently asked questions
What is a PPh 21 gross-up?
Gross-up is a method where the company adds a tax allowance equal to PPh 21 so the employee receives full net pay. The allowance is part of gross income and is itself taxed.
How is the gross-up tax allowance computed?
Since the allowance raises the tax base, it's computed iteratively: allowance = PPh 21 on (salary + allowance). The calculator repeats until convergence, using the monthly TER rate per PTKP status.
How does gross-up differ from company-borne tax?
In gross-up, the allowance is in gross income, raising the tax base. In 'borne' tax, the company pays without adding to the employee's gross (and it isn't deductible). Their tax treatment differs.
Why is it slightly higher than normal PPh?
Because the tax allowance itself is taxed, the total allowance is slightly higher than the tax on salary without gross-up. This effect is why the calculation must be iterative.
Is this figure final?
It's an estimate using the monthly average effective rate (TER). The final figure depends on other salary components, December adjustments, and company policy. Verify via payroll/tax advisor.
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