How the deductions are computed
1. SSS — 15% total, you pay 5%
Your salary maps to a Monthly Salary Credit (₱5,000–₱35,000 in ₱500 steps); the employee share is 5% of the MSC. At the ₱35,000 MSC cap the maximum employee deduction is ₱1,750. Details and employer shares: SSS Contribution Calculator.
2. PhilHealth — 5% premium, you pay half
The premium is 5% of monthly basic salary, with a ₱10,000 floor and ₱100,000 ceiling (per PhilHealth Advisory 2025-0002, unchanged for 2026). Your half ranges from ₱250 to ₱2,500.
3. Pag-IBIG — 2% capped at ₱200
The employee contributes 2% of the monthly fund salary, which is capped at ₱10,000 (HDMF Circular 460) — so the deduction is at most ₱200. Employees earning ₱1,500 or less contribute 1%.
4. BIR withholding tax (TRAIN Law)
Tax is computed on gross pay minus the three contributions above. Annualized, the first ₱250,000 is tax-free; the brackets then run 15%, 20%, 25%, 30%, and 35% (see FAQ for exact thresholds).
Worked example — ₱30,000/month
| Item | Amount |
|---|---|
| SSS employee share (MSC 30,000 × 5%) | ₱1,500.00 |
| PhilHealth (30,000 × 2.5%) | ₱750.00 |
| Pag-IBIG (capped) | ₱200.00 |
| Taxable income | ₱27,550.00/mo → ₱330,600/yr |
| Withholding tax (15% of excess over ₱250,000, annualized ÷ 12) | ₱1,007.50 |
| Take-home pay | ₱26,542.50 |
Frequently Asked Questions
How is take-home pay computed in the Philippines?
Take-home pay = gross monthly pay − SSS employee share − PhilHealth employee share − Pag-IBIG employee share − BIR withholding tax. The three contributions are deducted first, and the withholding tax is computed on what remains (taxable income).
What are the contribution rates in 2026?
SSS: 15% of the Monthly Salary Credit (employee pays 5%, MSC capped at ₱35,000). PhilHealth: 5% of monthly basic salary (employee pays half = 2.5%, salary floor ₱10,000 and ceiling ₱100,000). Pag-IBIG: employee pays 2% of monthly fund salary capped at ₱10,000, so at most ₱200 (1% if earning ₱1,500 or less).
What are the income tax rates under the TRAIN Law?
Annual taxable income: up to ₱250,000 — 0%; ₱250,000–400,000 — 15% of the excess over 250k; ₱400,000–800,000 — ₱22,500 + 20% of excess over 400k; ₱800,000–2M — ₱102,500 + 25% of excess over 800k; ₱2M–8M — ₱402,500 + 30% of excess over 2M; above ₱8M — ₱2,202,500 + 35% of excess over 8M. These rates took effect January 2023 and remain in force in 2026.
Why is my actual payslip slightly different from this calculator?
Employers compute withholding using BIR's semi-monthly/monthly withholding tables (which bracket your pay), may include taxable allowances or de minimis differences, and annualize at year-end. This calculator gives the standard monthly estimate; small differences of a few pesos to a few hundred pesos are normal.
Is 13th month pay included in this computation?
No. The 13th month pay is computed and taxed separately — it is tax-exempt up to ₱90,000 (combined with other bonuses). Use our 13th Month Pay Calculator for that.
Do minimum wage earners pay income tax?
No. Statutory minimum wage earners are exempt from income tax on their basic pay, holiday pay, overtime, night differential, and hazard pay — though SSS, PhilHealth, and Pag-IBIG contributions still apply.