Net Pay Calculator (Philippines)
Updated November 2026 · Free · No sign-up
Calculate your Philippine take-home pay — SSS (5%), PhilHealth (2.5%), Pag-IBIG (₱200), and TRAIN-law income tax, from monthly gross to the amount that actually lands in your payroll account.
Quick answer: Net pay = gross − SSS (5% of MSC, max ₱1,750) − PhilHealth (2.5%, ₱250-2,500) − Pag-IBIG (₱200) − withholding tax (TRAIN brackets, 0% below ₱20,833/month). A ₱30,000 earner takes home ≈ ₱26,600.
The Four Deductions (2026 Rates)
| Deduction | Employee share | Employer share |
|---|---|---|
| SSS | 5% of Monthly Salary Credit (MSC ₱5,000-35,000 band) — max ₱1,750 (incl. MPF above ₱20k MSC) | 10% — max ₱3,500 |
| PhilHealth | 2.5% of basic (₱10,000 floor / ₱100,000 ceiling) — ₱250-2,500 | 2.5% matching |
| Pag-IBIG | 2% capped at ₱10,000 base = ₱200 | ₱200 |
| Withholding tax | TRAIN brackets on taxable income (after contributions): 0% to ₱250k/yr; 15% over ₱250k; 20% over ₱400k; 25% over ₱800k; 30% over ₱2M; 35% over ₱8M | |
Worked Example — ₱30,000/month
SSS: MSC 30,000 → ₱1,500. PhilHealth: 2.5% = ₱750. Pag-IBIG: ₱200. Contributions = ₱2,450 → taxable ₱27,550/month (₱330,600/yr) → tax ≈ 15% of the slice over ₱250k = ₱1,008/month. Net ≈ ₱26,542 — an 11.5% total bite, gentle by regional standards thanks to the ₱250k zero band.
What Changes the Math
- 13th month & bonuses: tax-free up to ₱90,000/year — the 13th month calculator covers the proration; most workers' December pay is untouched by tax.
- De minimis benefits (rice subsidy, uniform, laundry allowances within ceilings) are non-taxable and skip contributions.
- Overtime/holiday premiums are taxable but DON'T raise your SSS MSC mid-year in most payroll setups — the holiday premium arrives relatively intact.
- Minimum wage earners (MWEs) are fully income-tax-exempt, including their OT/holiday/night-diff pay.
Reading Your Payslip Against This
Verify: the SSS line matches the current table for your MSC bracket (15% total era — old 14% tables underpay your fund), PhilHealth at 2.5% of BASIC (not gross-with-allowances), Pag-IBIG ₱200 (voluntary upgrades allowed — MP2 is separate savings), and withholding per the BIR monthly table. Common errors: PhilHealth computed on allowance-inflated figures, and annualization shocks in December when mid-year raises catch up — the same true-up logic as India's TDS.
Employer Cost Side
A ₱30,000 employee costs the employer ≈ ₱30,000 + ₱3,000 SSS + ₱750 PhilHealth + ₱200 Pag-IBIG + EC ₱30 = ~₱33,980/month (+13th month accrual ₱2,500) — a ~22% loading relevant to any salary negotiation framing.
Frequently Asked Questions
How do I compute take-home pay in the Philippines?
Gross − SSS (5% of MSC) − PhilHealth (2.5% of basic) − Pag-IBIG (₱200) − TRAIN withholding tax on the remainder. ₱30,000 gross nets about ₱26,500.
How much is SSS deduction in 2026?
5% of your Monthly Salary Credit (₱5,000-35,000 band) — up to ₱1,750/month including the MPF tier; the employer adds 10%.
How much tax do I pay on my salary?
TRAIN brackets after contributions: nothing below ₱250,000/year (~₱20,833/month taxable), then 15-35% marginal above. Minimum wage earners are fully exempt.
Is 13th month pay taxed?
Tax-free up to ₱90,000/year pooled with other bonuses; only the excess is taxable.
Why did my December tax jump?
Year-end annualization — payroll trues up the whole year's tax against actual income; mid-year raises and bonuses settle in the final payslips.
What is MP2?
Pag-IBIG's voluntary savings program (higher dividends, 5-year term) — separate from the mandatory ₱200 and worth considering for the yield.
✓ Formula verified • Last updated: November 3, 2026