Philippines Salary Calculator 2026
Calculate employee net salary and employer costs including PhilHealth, SSS, Pag-IBIG, and income tax
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Enter your salary details to see the complete breakdown
Philippines payroll in plain English: gross, net and total employer cost
A Philippine payslip looks confusing because four separate agencies take a slice before the employee sees the money. The Bureau of Internal Revenue (BIR) collects withholding tax under the TRAIN Law, the Social Security System (SSS) takes contributions for retirement and short-term benefits, PhilHealth funds the national health insurance, and Pag-IBIG funds housing loans and provident savings. Each one is split between the employee and employer, and the splits are not equal.
The calculator above turns gross monthly pay into net take-home pay, and also shows the total monthly employer cost — the number that matters when budgeting headcount or comparing offers across borders. Below is a breakdown of every deduction you will see in the result, with the legal source for each rate.
Mandatory deductions on every Philippine payslip
Withholding tax (BIR, TRAIN Law)
Compensation income is taxed under the TRAIN Law schedule effective since 2023. The first ₱250,000 of annual taxable compensation is tax-free; above that the rates are 15%, 20%, 25%, 30% and 35%. Employers compute monthly withholding using the BIR's revised monthly withholding tax table, which already bakes the brackets into a per-month formula.
- Up to ₱20,833/month → 0% withholding
- ₱20,833 – ₱33,332 → 15% on the excess over ₱20,833
- ₱33,333 – ₱66,666 → ₱1,875 + 20% on excess over ₱33,333
- ₱66,667 – ₱166,666 → ₱8,541.80 + 25% on excess over ₱66,667
- ₱166,667 – ₱666,666 → ₱33,541.80 + 30% on excess over ₱166,667
- Above ₱666,667 → ₱183,541.80 + 35% on excess over ₱666,667
SSS contribution (Republic Act 11199)
The total SSS contribution rate for 2025 is 15% of the Monthly Salary Credit (MSC): 5% from the employee and 10% from the employer (which already includes the 1% Employees' Compensation premium for most salary brackets). The MSC ranges from ₱5,000 to a ceiling of ₱35,000 per month, so SSS deductions cap out once gross monthly pay exceeds ₱34,750. Anyone earning above ₱24,750 also accrues a Mandatory Provident Fund (MPF) component on top of the regular SSS — the calculator splits this out.
PhilHealth premium
The PhilHealth premium for 2025 is 5% of gross monthly salary, split evenly between employee and employer (2.5% each). The contribution is floored at ₱500/month (for monthly salaries ≤ ₱10,000) and capped at ₱5,000/month total (for salaries ≥ ₱100,000). Universal Health Care premiums apply to both private and public sector employees.
Pag-IBIG Fund (HDMF)
Effective since February 2024, the Pag-IBIG monthly fund contribution rate doubled. For monthly salaries above ₱1,500, the employee contributes 2% and the employer 2%, on a maximum monthly compensation of ₱10,000 — so the per-side cap is ₱200/month. Below ₱1,500, the employee rate is 1% (employer remains 2%). Members can voluntarily increase contributions beyond the mandatory minimum for higher Pag-IBIG MP2 returns.
Worked example: ₱60,000/month in Manila
Take a single, regular full-time employee with no dependents earning ₱60,000 gross per month in Metro Manila. Here is how the payslip resolves under current 2025 rules.
| Component | Employee | Employer |
|---|---|---|
| Gross salary | ₱60,000.00 | — |
| SSS (5% / 10% on MSC ₱35k cap) | −₱1,750.00 | +₱3,500.00 |
| PhilHealth (2.5% / 2.5%) | −₱1,500.00 | +₱1,500.00 |
| Pag-IBIG (capped at ₱200 each) | −₱200.00 | +₱200.00 |
| Withholding tax (TRAIN, 25% bracket) | −₱5,651.45 | — |
| Net take-home pay | ₱50,898.55 | — |
| Total monthly employer cost | — | ₱65,200.00 |
The calculator at the top of this page produces these numbers automatically and updates them as you change the gross figure. Your actual amounts will vary slightly with the current monthly BIR table revisions and any optional Pag-IBIG MP2 deductions you elect.
Things only Philippine employers face
- 13th month pay is mandatory. Under Presidential Decree 851, every rank-and-file employee who has worked at least one month must receive a 13th month bonus equal to one-twelfth of their basic annual salary, paid on or before December 24. The first ₱90,000 is tax-exempt; anything above is added to taxable compensation. Use the optional 13th month toggle in the calculator to see the gross-up effect on annual cost.
- Employees' Compensation (EC) is bundled into SSS. EC premiums (₱10/month for MSC ≤ ₱14,750, ₱30/month above) are paid by the employer and already included in the SSS employer contribution shown in the calculator.
- De minimis benefits are tax-exempt within limits. Rice subsidy up to ₱2,000/month, uniform allowance up to ₱6,000/year, medical assistance up to ₱10,000/year and similar items don't count as taxable compensation when within BIR de minimis ceilings.
- Service charges go to rank-and-file. In hospitality/restaurants, RA 11360 requires 100% of service charges to be distributed to rank-and-file employees, not split with management — separate from regular payroll.
- Final pay rules. Under DOLE Labor Advisory 06-20, separated employees must receive their final pay (last salary, prorated 13th month, unused leave conversion, etc.) within 30 days of separation. See the related Philippines income tax calculator for the tax treatment of separation pay.
Frequently asked questions
Why is my SSS deduction stuck at ₱1,750 even though my salary went up?
SSS is calculated on a Monthly Salary Credit (MSC), not on actual gross pay. The MSC is capped at ₱35,000 for 2025, so once you earn above ₱34,750/month, your regular SSS deduction stays flat. Anyone earning more than ₱24,750 will additionally see a Mandatory Provident Fund (MPF) line — that scales up to ₱35,000 MSC.
Does this calculator include 13th month pay?
By default the calculator shows pure monthly figures. Toggle the 13th month option to annualize: it adds the prorated bonus to the December cycle and applies the ₱90,000 tax-exempt ceiling under TRAIN before withholding the excess.
What changed for Pag-IBIG in 2024?
Effective 1 February 2024, the Pag-IBIG mandatory monthly contribution rate doubled from the long-standing 1% / 2% split to 2% / 2% (employee / employer), with the maximum monthly compensation base raised to ₱10,000. The employee maximum is therefore ₱200/month.
Are minimum-wage earners exempt from withholding tax?
Yes. Under RA 9504 and TRAIN, statutory minimum-wage earners (SMWs) are exempt from income tax on basic pay, holiday pay, overtime pay, night-shift differential and hazard pay. SSS, PhilHealth and Pag-IBIG contributions still apply.
How does this differ from a freelance / professional fee?
This calculator is for employer-employee compensation. Freelancers earning professional fees deal with a different regime — typically 8% gross income tax option, expanded withholding tax (EWT) at 5% / 10%, and quarterly self-assessed VAT or percentage tax. For payroll purposes, the income must come under an employer-employee relationship.
Can foreign employers run Philippine payroll without setting up a local entity?
No. To run statutory contributions through SSS, PhilHealth, Pag-IBIG and BIR, you need a local registered employer of record (or a local entity). Using an EOR provider lets you hire compliantly without incorporation; we cover EOR costs separately on the Employer of Record section.
Official sources
- BIR — Withholding tax tables and TRAIN Law schedule
- SSS — Contribution schedule and MSC
- PhilHealth — Employer premium guide
- Pag-IBIG Fund — Membership and contribution rules
- DOLE — Labor advisories on final pay, 13th month and service charges
Last reviewed: 2026-05-10. Rates and thresholds update at least annually; verify current figures with the linked official sources before formal payroll filing.