What PPh 21 TER means
PPh 21 TER is the effective-average-rate approach used for monthly payroll withholding. It is designed to simplify recurring deductions, but the calculator result should still be treated as a first estimate until the income data, category, and payroll components are final.
Why categories A, B, and C exist
The categories separate taxpayer profiles and monthly income thresholds before the effective rate is applied. As a result, two employees with similar gross pay may still produce different withholding results if they fall into different categories.
How to use the output
Enter gross monthly pay, select the category, and use the monthly tax estimate in payroll modelling. The output is not a substitute for year-end tax treatment or a validated employee-level payroll calculation.
Where this estimate is useful
- headcount budgeting
- compensation offers
- employer cash-cost modelling
- comparing team structures across regions
When to re-check the result
Re-check the estimate when allowances, bonuses, status changes, leave, or any other compensation component affects the payroll base. Final payroll still needs to follow the tax rules and the correct employee data.
Changelog
- 2026-03-19 - The reference page was published with the initial source layer, structure, and coverage note.
- 2026-03-19 - Metadata, internal linking, FAQs, and source-verification notes were updated.
This portal is informational. Confirm the final obligation and competent authority before filing, licensing, payroll, tax, or investment decisions. Read methodology.