Your take-home pay is your gross monthly salary minus four deductions: SSS, PhilHealth, and Pag-IBIG contributions, and withholding tax.
By the Orkids payroll engineering teamReviewed against SSS (RA 11199), PhilHealth (RA 11223), Pag-IBIG & BIR TRAIN tablesUpdated June 2026
Estimated monthly take-home pay
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Estimate only. It assumes a constant salary with no other taxable allowances, uses an approximate SSS Monthly Salary Credit (ignoring the exact brackets, the EC fee, and the provident-fund portion), and applies the TRAIN graduated tax. Confirm with SSS, PhilHealth, Pag-IBIG, and the BIR.
How is take-home pay computed?
Subtract your SSS, PhilHealth, and Pag-IBIG contributions from your gross salary to get taxable income, apply the TRAIN tax, and subtract it.
Worked example for a ₱25,000 monthly salary: SSS ₱1,250, PhilHealth ₱625, and Pag-IBIG ₱200 come to ₱2,075 in contributions, leaving ₱22,925 of taxable income — about ₱275,100 a year. The TRAIN tax on that is roughly ₱314 a month, so the estimated take-home is about ₱22,611. Each deduction has its own calculator: the SSS, PhilHealth, and Pag-IBIG calculators.
Take-home pay at sample salaries (2026 rates)
The full breakdown at four monthly salaries, after SSS, PhilHealth, Pag-IBIG, and withholding tax under the 2026 rates.
| Monthly gross | SSS (5%) | PhilHealth | Pag-IBIG | Withholding tax | Take-home |
|---|---|---|---|---|---|
| ₱18,000 | ₱900 | ₱450 | ₱200 | ₱0 — exempt | ₱16,450 |
| ₱25,000 | ₱1,250 | ₱625 | ₱200 | ₱314 | ₱22,611 |
| ₱45,000 | ₱1,750 | ₱1,125 | ₱200 | ₱3,593 | ₱38,332 |
| ₱80,000 | ₱1,750 | ₱2,000 | ₱200 | ₱10,888 | ₱65,162 |
At ₱45,000 and ₱80,000 the SSS share is fixed at ₱1,750 because the Monthly Salary Credit is capped at ₱35,000. Pag-IBIG caps at ₱200 (2% of a ₱10,000 base). Estimates only — confirm with the SSS, PhilHealth, Pag-IBIG, and BIR.
What are the income tax brackets?
The Philippines uses TRAIN graduated rates: annual taxable income up to ₱250,000 is tax-exempt, and rates rise from 15% to 35% above that.
| Annual taxable income | Income tax |
|---|---|
| ₱250,000 and below | 0% — exempt |
| ₱250,000 to ₱400,000 | 15% of the excess over ₱250,000 |
| ₱400,000 to ₱800,000 | ₱22,500 + 20% of the excess over ₱400,000 |
| ₱800,000 to ₱2,000,000 | ₱102,500 + 25% of the excess over ₱800,000 |
| ₱2,000,000 to ₱8,000,000 | ₱402,500 + 30% of the excess over ₱2,000,000 |
| Over ₱8,000,000 | ₱2,202,500 + 35% of the excess over ₱8,000,000 |
What deductions come out of your salary?
Four mandatory deductions: SSS, PhilHealth, Pag-IBIG, and withholding tax.
The three contributions fund social security, health insurance, and the housing-and-savings fund; the withholding tax is your income tax, remitted by your employer to the Bureau of Internal Revenue (BIR). The three contributions are deducted before tax is computed, so they reduce your taxable income. 13th month pay is separate and tax-exempt up to ₱90,000.
Take-home pay — frequently asked questions
- What deductions are taken from my salary in the Philippines?
- Four: your SSS contribution, PhilHealth contribution, Pag-IBIG contribution, and withholding tax. Your take-home pay is your gross salary minus these four.
- How much income tax is deducted from my salary?
- It depends on your annual taxable income under the TRAIN graduated rates. Annual taxable income up to ₱250,000 is tax-exempt; above that, rates rise from 15% to 35%.
- Are SSS, PhilHealth, and Pag-IBIG tax-deductible?
- Yes. Your mandatory SSS, PhilHealth, and Pag-IBIG contributions are deducted from gross pay before income tax is computed, so they lower your taxable income.
- Is 13th month pay part of my take-home pay?
- No. 13th month pay is paid separately, and it is tax-exempt up to ₱90,000 together with other benefits under the TRAIN law.
- What monthly salary is exempt from income tax?
- Roughly, if your taxable income after contributions is about ₱20,833 a month or less (₱250,000 a year), no income tax is withheld — though SSS, PhilHealth, and Pag-IBIG still apply.
- Why is this only an estimate?
- It approximates the SSS Monthly Salary Credit, leaves out the EC fee and provident-fund portion, and assumes a constant salary with no other allowances or exemptions. Confirm exact figures with the agencies and the BIR.
- Why do higher earners keep more of each peso of a raise?
- SSS caps at a ₱35,000 Monthly Salary Credit and Pag-IBIG caps at a ₱10,000 fund-salary base, so once you pass those caps a raise no longer increases those two deductions. Only PhilHealth (until the ₱100,000 ceiling) and withholding tax keep rising, so a larger slice of each added peso reaches your take-home pay.
- What is the maximum Pag-IBIG deduction from my pay?
- ₱200 a month. Pag-IBIG (HDMF) is 2% of monthly compensation, but the fund-salary base is capped at ₱10,000, so 2% × ₱10,000 = ₱200 is the most that is deducted from an employee, no matter how high the salary. You may voluntarily contribute more.
Key terms
- Taxable income.
- Gross compensation minus your mandatory SSS, PhilHealth, and Pag-IBIG contributions. Tax is computed on this figure, not on gross — which is why the contributions lower the tax you pay.
- Withholding tax.
- The income tax your employer deducts each payday and remits to the BIR on your behalf, computed from the TRAIN graduated rates on your taxable compensation.
- Monthly Salary Credit (MSC).
- The SSS bracketed value your contribution is computed on, not your raw salary; it caps at ₱35,000, so the most an employee pays in the regular SSS share is ₱1,750 a month.
- PhilHealth income ceiling.
- PhilHealth is 5% of monthly basic salary between a ₱10,000 floor and a ₱100,000 ceiling; above the ceiling the employee share stays at ₱2,500.
- Pag-IBIG fund salary.
- The compensation base Pag-IBIG uses, capped at ₱10,000, so the maximum employee Pag-IBIG deduction is ₱200 a month.
- Net pay (take-home).
- Gross salary minus the four employee deductions — SSS, PhilHealth, Pag-IBIG, and withholding tax — the amount that actually reaches your account.
Sources
- Republic Act 10963 (TRAIN law) — graduated income tax rates, National Internal Revenue Code as amended.
- SSS (RA 11199), PhilHealth (RA 11223), and Pag-IBIG / HDMF (Circular No. 460) contribution rules.
- Estimates only. Confirm with the BIR, SSS, PhilHealth, and Pag-IBIG.
Last reviewed: June 2026
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