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REFERENCE · PHILIPPINES

Philippine statutory pay & tax rates, 2026.

Every current SSS, PhilHealth, Pag-IBIG, minimum-wage, and BIR figure a payroll or finance team needs — in one place, with the legal basis.

Updated June 6, 2026 · verified against each agency & statute

These are the Philippine statutory rates in force as of June 6, 2026 — contributions, minimum wage, and the BIR taxes — each shown with its rate and legal basis, reflecting the 2025–2026 CMEPA, EOPT, and RR 29-2025 changes.

Compiled and reviewed by the Orkids engineering team · cross-checked against SSS, PhilHealth, Pag-IBIG, DOLE/NWPC, and the BIR · Updated June 6, 2026

On this page
  1. 01Mandatory contributions (per employee, monthly)
  2. 02Minimum wage — National Capital Region
  3. 03Personal income tax (graduated, 2023 onward)
  4. 0413th-month pay & de minimis benefits
  5. 05Corporate income tax (CREATE)
  6. 06VAT & percentage tax
  7. 07Capital gains, estate, and documentary stamp tax

Mandatory contributions (per employee, monthly)

The three government contributions every employer deducts and remits each month — SSS, PhilHealth, and Pag-IBIG.

2026 mandatory monthly contribution rates
ContributionRateEmployee / employer splitSalary baseMax monthly
SSS15% of MSC5% employee / 10% employer (+ EC, MPF)MSC ₱5,000–₱35,000₱1,750 employee · ₱3,500 employer
PhilHealth5% of monthly basic2.5% / 2.5%Floor ₱10,000 · ceiling ₱100,000₱5,000 total (₱2,500 each)
Pag-IBIG (HDMF)2% + 2%2% employee / 2% employer*Ceiling ₱10,000₱200 each (₱400 total)
*Pag-IBIG employee share is 1% on monthly compensation of ₱1,500 or below; 2% above. SSS includes a small Employees' Compensation (EC) premium and the Mandatory Provident Fund (MPF/WISP) above ₱20,000 MSC.
EmployeeEmployer
Maximum monthly statutory contribution in pesos, employee share versus employer share, for SSS, PhilHealth, and Pag-IBIG.
CategoryEmployeeEmployer
SSS₱1,750₱3,500
PhilHealth₱2,500₱2,500
Pag-IBIG₱200₱200
Maximum monthly contribution by program, split between employee and employer. SSS is the largest and the most employer-weighted (₱1,750 employee vs ₱3,500 employer); PhilHealth and Pag-IBIG are split evenly.Maximum monthly share at each program's salary ceiling. SSS excludes the small EC premium and MPF/WISP. Figures from the table above.

Legal basis: SSS: RA 11199 · PhilHealth: RA 11223 (UHC Act) · Pag-IBIG: RA 9679 (HDMF).

SSS calculatorPhilHealth calculatorTake-home pay calculator

Minimum wage — National Capital Region

The current NCR daily minimum wage under Wage Order NCR-26, effective July 18, 2025 and carrying through 2026. Other regions set their own rates via their wage boards.

NCR daily minimum wage, 2026
SectorDaily minimum wage
Non-agriculture₱695
Agriculture; service/retail ≤15 workers; manufacturing ≤10 workers₱658
Wage Order NCR-26, effective July 18, 2025; the earliest a new NCR order can take effect is after July 2026. Regional rates differ — check your Regional Tripartite Wages and Productivity Board.

Legal basis: DOLE / NWPC Wage Order No. NCR-26; Labor Code (RA 7160 for LGU-set components).

Minimum wage tool

Personal income tax (graduated, 2023 onward)

The graduated rates on annual taxable income under the TRAIN law, in force from January 1, 2023. The first ₱250,000 is exempt.

Graduated personal income tax rates, 2023 onward
Annual taxable incomeTax
Up to ₱250,0000%
Over ₱250,000 to ₱400,00015% of excess over ₱250,000
Over ₱400,000 to ₱800,000₱22,500 + 20% of excess over ₱400,000
Over ₱800,000 to ₱2,000,000₱102,500 + 25% of excess over ₱800,000
Over ₱2,000,000 to ₱8,000,000₱402,500 + 30% of excess over ₱2,000,000
Over ₱8,000,000₱2,202,500 + 35% of excess over ₱8,000,000
Self-employed/professionals with gross sales/receipts ≤₱3,000,000 (non-VAT) may instead elect the 8% flat tax on gross over ₱250,000, in lieu of graduated income tax and percentage tax.

Legal basis: NIRC Sec. 24(A), as amended by RA 10963 (TRAIN).

Withholding tax guideBIR Form 1701TRAIN law explained

13th-month pay & de minimis benefits

13th-month pay is mandatory (PD 851). It and other benefits are tax-exempt up to ₱90,000; de minimis benefits are exempt up to their own ceilings, raised by RR 29-2025 effective January 2026.

De minimis benefit ceilings under RR 29-2025 (2026)
BenefitTax-exempt ceiling
13th-month pay + other benefits (combined)₱90,000 per year (excess taxable)
Rice subsidy₱2,500 / month
Uniform & clothing allowance₱8,000 / year
Actual medical assistance₱12,000 / year
Medical cash allowance to dependents₱2,000 / semester (₱333 / month)
Laundry allowance₱400 / month
Employee achievement award (tangible)₱12,000 / year
Christmas & anniversary gifts₱6,000 / year
Unused vacation leave (private)10 days / year monetized
OT / night-shift meal allowance25% of basic minimum wage
CBA + productivity incentives (combined)₱10,000 / year
De minimis ceilings per RR 29-2025 (effective January 2026). Amounts exceeding a ceiling are added to “other benefits” and count against the ₱90,000 cap.

Legal basis: PD 851; NIRC as amended by TRAIN (₱90,000 cap); RR 29-2025 (de minimis ceilings).

13th-month pay guideDe minimis benefits guide13th-month calculator

Corporate income tax (CREATE)

Corporate rates under the CREATE Act. Small domestic corporations get a reduced rate; the minimum corporate income tax reverted to 2% on July 1, 2023.

Corporate income tax rates, 2026
TaxpayerRate
Domestic corporation (regular)25% of net taxable income
Domestic corp — net income ≤₱5M and assets ≤₱100M*20%
Minimum corporate income tax (from 4th year)2% of gross income
Resident foreign corporation25%
*Total assets exclude the land on which the business is situated. MCIT was temporarily 1% (July 1, 2020–June 30, 2023) and reverted to 2% on July 1, 2023.

Legal basis: RA 11534 (CREATE), amending the NIRC.

Corporate income tax guide

VAT & percentage tax

Value-added tax and the non-VAT alternative. The ₱3,000,000 threshold separates the two; VAT is now filed quarterly only.

VAT and percentage tax, 2026
TaxRateWhoReturn
VAT12%Registered, or sales over ₱3,000,0002550Q (quarterly only)
VAT — zero-rated0%Exports and qualified sales2550Q
Percentage tax3% of grossNon-VAT, sales ≤₱3,000,000 (Sec. 116)2551Q (quarterly)
The monthly VAT declaration (2550M) was discontinued — VAT-registered taxpayers file quarterly on 2550Q only (TRAIN, from January 2023).

Legal basis: NIRC Secs. 106–116, as amended by TRAIN and the Ease of Paying Taxes Act (RA 11976).

VAT guidePercentage tax guide

Capital gains, estate, and documentary stamp tax

Capital-markets and transfer taxes, including the CMEPA changes effective July 1, 2025.

Capital gains, estate, and documentary stamp tax, 2026
TaxRateNote
Capital gains — real property (capital asset)6%On the higher of selling price, BIR zonal value, or FMV
Capital gains — unlisted shares15%On the net capital gain (Form 1707)
Stock transaction tax — listed shares0.10%Of gross selling price (cut from 0.6% by CMEPA, July 1, 2025)
Estate tax6%Flat, on the net estate; ₱5M standard + up to ₱10M family-home deductions
DST — original issue of shares0.75%Of par value (cut from 1% by CMEPA)
DST — deed of sale of real property1.5%₱15 per ₱1,000 of consideration or FMV, whichever is higher
DST — debt instruments0.75%Of issue price (Sec. 179)
Sale/transfer of listed shares is exempt from DST under CMEPA. Figures per the NIRC as amended by TRAIN and CMEPA (RA 12214) / RR 19-2025.

Legal basis: NIRC Titles III, VI, VII, as amended by TRAIN and RA 12214 (CMEPA) / RR 19-2025.

Capital gains guideEstate tax guideDST guide

How to cite this page

Orkids. (2026). Philippine Statutory Pay & Tax Rates 2026. Orkids Technologies Inc. Retrieved from https://orkids.ph/research/philippine-statutory-rates-2026

Free to reuse with attribution (CC BY 4.0). Rates change — always confirm the current figure with the issuing agency before relying on it.

Sources

  1. Social Security System (SSS) — contribution schedule, RA 11199
  2. Philippine Health Insurance Corporation (PhilHealth) — premium schedule, RA 11223 (UHC Act)
  3. Home Development Mutual Fund (Pag-IBIG / HDMF) — RA 9679
  4. DOLE / National Wages and Productivity Commission — Wage Order NCR-26
  5. Bureau of Internal Revenue — NIRC as amended by TRAIN (RA 10963), CREATE (RA 11534), EOPT (RA 11976), CMEPA (RA 12214); RR 19-2025; RR 29-2025
Last reviewed June 6, 2026

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