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How to Compute Your Take-Home Pay in the Philippines (2026)

A plain-English guide to working out your monthly net pay in the Philippines — SSS, PhilHealth, Pag-IBIG, and BIR withholding tax, with a worked example.

Published June 7, 2026

Your take-home pay (net pay) is what actually lands in your account after the mandatory deductions every Philippine employee pays. If you’ve ever wondered why your ₱30,000 salary doesn’t arrive as ₱30,000, this guide walks through exactly where the difference goes — and how to compute it yourself.

There are four standard deductions: SSS, PhilHealth, Pag-IBIG, and withholding tax. Everything below uses 2026 statutory rates. (Prefer to skip the math? The Take-Home Pay Calculator does all of this instantly.)

The four deductions

1. SSS (Social Security System)

Your employee share is 5% of your monthly salary credit, which is capped — so very high salaries pay a fixed maximum. For most employees this is a few hundred to just over a thousand pesos. See the SSS Contribution Calculator for your exact bracket.

2. PhilHealth

The premium is 5% of your monthly basic salary, split evenly between you and your employer, so you pay 2.5% — within a salary floor and ceiling. Work it out with the PhilHealth Contribution Calculator.

3. Pag-IBIG

The mandatory employee share is 2% of your salary, with the contribution capped (so the maximum employee share is modest). The Pag-IBIG Contribution Calculator shows yours.

4. Withholding tax (BIR)

This is the big one, and it’s computed after the three contributions above are subtracted. The Philippines uses the TRAIN graduated rates, and crucially, the first ₱250,000 of annual taxable income is tax-free — so lower salaries often have little or no withholding tax. The Income Tax Calculator breaks it down.

A worked example: ₱30,000 monthly salary

  1. Start with gross: ₱30,000.
  2. Subtract contributions: roughly ₱1,500 SSS + ₱750 PhilHealth + ₱200 Pag-IBIG ≈ ₱2,450.
  3. Taxable pay: ₱30,000 − ₱2,450 = ₱27,550.
  4. Withholding tax: annualised, this lands in the lowest taxable bracket, working out to about ₱1,000/month.
  5. Take-home pay: ₱30,000 − ₱2,450 − ₱1,000 ≈ ₱26,550.

So a ₱30,000 salary nets roughly ₱26,500 — about 88% of gross. Plug your own number into the Take-Home Pay Calculator to see your exact figure and a breakdown bar.

Why your payslip might differ slightly

  • Employers may use the BIR’s per-period withholding tables, which round differently from an annualised estimate.
  • De minimis benefits, allowances, and the tax-exempt portion of your 13th-month pay (up to ₱90,000) change the taxable base.
  • Salary-credit brackets for SSS/PhilHealth/Pag-IBIG step in fixed increments.

Treat any calculator result as a close estimate, and confirm exact figures with your HR, SSS, PhilHealth, Pag-IBIG, and the BIR.

FAQ

Is 13th-month pay taxed? Only the portion above ₱90,000 (combined with other bonuses) is taxable; below that it’s tax-free.

Does take-home pay include overtime or night differential? No — those are added on top. Use the dedicated overtime and night-differential tools for those.

Why is the first ₱250,000 tax-free? Under the TRAIN law, annual taxable income up to ₱250,000 is exempt, which is why many minimum-wage earners pay zero income tax.

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