Think your XML is lacking a root entry, so, parsing will stick.  However, that issue aside, lookup simplexml_load_file and simplexml_load_string. Those are the simplest ways to access XML in a PHP-style structure.
In your XML sample, I've inserted a generic 'records' entry. For example:
$t = <<< EOF
<?xml version="1.0" encoding="iso-8859-1"?>    
<records>
    <employee>
          <name>Mark</name>
          <age>27</age>
          <salary>$5000</salary>
    </employee>
    <employee>
          <name>Jack</name>
          <age>25</age>
          <salary>$4000</salary>
    </employee>
    <employee>
          <name>nav</name>
          <age>25</age>
          <salary>$4000</salary>
    </employee>
</records>
EOF;
$x = @simplexml_load_string( $t );
print_r( $x );
Function is warning-suppressed since you probably don't want validation warnings.  Anyhow, at this point, the parsed XML will look like this:
SimpleXMLElement Object
(
    [employee] => Array
        (
            [0] => SimpleXMLElement Object
                (
                    [name] => Mark
                    [age] => 27
                    [salary] => $5000
                )
            [1] => SimpleXMLElement Object
                (
                    [name] => Jack
                    [age] => 25
                    [salary] => $4000
                )
            [2] => SimpleXMLElement Object
                (
                    [name] => nav
                    [age] => 25
                    [salary] => $4000
                )
        )
)
"; } ?> – Mar 28 '12 at 05:46