Take-Home Pay Calculator 2026 Philippines
Compute your net monthly salary after SSS, PhilHealth, Pag-IBIG, and BIR withholding tax. Updated with the latest 2026 contribution rates and TRAIN Law tax brackets.
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Your take-home pay
How take-home pay is computed in the Philippines
Your net take-home pay is what’s actually deposited in your bank account every month. It’s your gross salary minus four mandatory deductions: SSS, PhilHealth, Pag-IBIG, and BIR withholding tax. Non-taxable allowances (de minimis benefits) are added back since they’re not subject to deductions.
For 2026, the total deduction rate for a typical employee ranges from about 8% (low earners) to 22% (high earners), depending on salary level and the progressive tax brackets.
The formula
− SSS employee contribution (5% of MSC)
− PhilHealth employee contribution (2.5% of salary, capped)
− Pag-IBIG employee contribution (2% of salary, max ₱200)
− BIR monthly withholding tax (TRAIN Law brackets)
+ Non-taxable allowances (de minimis benefits)
The four deductions explained
1. SSS (Social Security System)
Employee share is 5% of your Monthly Salary Credit (MSC). The MSC is your salary rounded to ₱500 increments, capped at ₱5,000 minimum and ₱35,000 maximum. Maximum employee SSS deduction is ₱1,750/month (5% of ₱35,000). Funds your retirement, sickness, maternity, disability, and death benefits.
2. PhilHealth
The 2026 contribution rate is 5% of monthly salary, split 50/50 between employee and employer. So your employee share is 2.5% of your salary, with a floor of ₱500/month (for salaries below ₱10,000) and a ceiling of ₱2,500/month (for salaries above ₱100,000). Covers your national health insurance.
3. Pag-IBIG (HDMF)
Employee share is 2% of your monthly compensation, capped at ₱200/month (since the salary ceiling is ₱10,000 for contribution purposes). Funds your housing loan eligibility and the Pag-IBIG MP2 savings program. The cap may increase in future years.
4. BIR Withholding Tax
The progressive income tax under the TRAIN Law. The first ₱20,833/month (₱250,000/year) is fully exempt. Above that, tax brackets apply at 15%, 20%, 25%, 30%, and up to 35% for highest earners. Your taxable income is gross salary minus the three contributions above, then tax is computed on the result.
Sample computations
Example 1: Entry-level employee earning ₱18,000/month
- Gross: ₱18,000
- SSS: ₱18,000 × 5% = ₱900
- PhilHealth: ₱18,000 × 2.5% = ₱450
- Pag-IBIG: ₱200 (cap)
- Taxable income: ₱18,000 − ₱1,550 = ₱16,450 (below ₱20,833 exempt threshold)
- Withholding tax: ₱0
- Net take-home: ₱16,450/month (91.4% of gross)
Example 2: Mid-level employee earning ₱35,000/month
- Gross: ₱35,000
- SSS: ₱1,750 (max)
- PhilHealth: ₱875
- Pag-IBIG: ₱200
- Taxable income: ₱35,000 − ₱2,825 = ₱32,175
- Withholding tax: 15% × (₱32,175 − ₱20,833) = ₱1,701.30
- Net take-home: ₱30,473.70/month (87.1% of gross)
Example 3: Senior employee earning ₱80,000/month
- Gross: ₱80,000
- SSS: ₱1,750 (max)
- PhilHealth: ₱2,000
- Pag-IBIG: ₱200
- Taxable income: ₱80,000 − ₱3,950 = ₱76,050
- Withholding tax: ₱8,541.80 + 25% × (₱76,050 − ₱66,667) = ₱10,887.55
- Net take-home: ₱65,162.45/month (81.5% of gross)
Frequently asked questions
Other deductions may apply: company HMO premiums, retirement plans (401k-equivalent), salary loans (SSS, Pag-IBIG, company loans), HMO co-pay, union dues, charity contributions, or wage garnishment. This calculator covers only the four mandatory government deductions. Add your specific extras separately.
De minimis benefits are small employee perks that are tax-exempt and not subject to mandatory contributions. Common examples: rice subsidy (up to ₱2,000/month), uniform allowance (up to ₱6,000/year), medical cash allowance, transportation allowance, achievement awards, and gifts up to ₱5,000/year. Add these to your take-home calculation as bonus net income.
No. 13th month pay and bonuses are paid separately (typically December). They’re tax-exempt up to a combined ₱90,000 per year. Use our 13th Month Pay Calculator to compute those separately.
Your monthly net take-home is split into two equal payments. The math is identical — just divide the monthly net by 2 to get each cutoff. Some employers use slightly different formulas (full deductions on the 30th cutoff only), so verify with your HR department which scheme they use.
SSS, PhilHealth, and Pag-IBIG are based on your basic salary only, so overtime doesn’t change those contributions. However, overtime income IS subject to BIR withholding tax — your employer will adjust your monthly withholding based on actual taxable compensation, which includes overtime, holiday pay, and night differential.
Salary loan amortizations are additional deductions not shown in this calculator. SSS salary loans typically deduct around 4% of your loan balance monthly, and Pag-IBIG loans use similar terms. Add the monthly amortization separately to compute your actual take-home pay.
The PhilHealth contribution rate has been gradually increasing under the Universal Health Care Act (RA 11223). It rose from 3% in 2019 to 5% in 2025. The rate is currently scheduled to stay at 5% — your employee share is half (2.5% of salary).
Minimum wage earners are exempt from BIR income tax, including overtime, holiday, and night differential pay. However, SSS, PhilHealth, and Pag-IBIG contributions still apply (minimum MSC of ₱5,000 for SSS, etc.). So minimum wage earners take home roughly 92-94% of their gross.