Start with a monthly gross salary of 50,000 pesos. SSS takes 5% of the 35,000 salary-credit ceiling, so
1,750. PhilHealth takes 2.5% of basic pay, which is 1,250 on a 50,000 salary. Pag-IBIG takes 2% of the
10,000 fund-salary cap, so 200. Those three deductions total 3,200 a month. The BIR withholding is based
on annual taxable pay: 600,000 gross less 38,400 of yearly contributions leaves 561,600, on which graduated
tax is 54,820 a year, or about 4,568 a month. Subtracting 3,200 of contributions and 4,568 of withholding
from the 50,000 gross leaves a net of about 42,232 a month, a take-home of roughly 84% of gross at this
salary level.
Deduction
Monthly (PHP)
Monthly gross
₱50,000
SSS
₱1,750
PhilHealth
₱1,250
Pag-IBIG
₱200
Withholding tax
₱4,568
Net monthly
₱42,232
How it is calculated
Gross-to-net itemizes every line a payroll team removes from your salary. The three mandatory contributions
each use a different base: SSS is 5% of the monthly salary credit, capped at a 35,000 credit; PhilHealth is
2.5% of basic pay between a 10,000 floor and a 100,000 ceiling; and Pag-IBIG is 2% of a fund salary that
tops out at 10,000, so 200 for most earners. The calculator then computes BIR withholding on annual taxable
income, which is gross less the annualized contributions, and divides it back to a monthly figure. Net pay
is gross minus the three contributions minus the monthly tax. This is the standard mandatory picture and
does not include voluntary items such as company loan repayments, HMO upgrades, or union dues, which differ
by employer and would appear as extra lines on your own payslip.
Frequently asked questions
How do I convert gross salary to net in the Philippines?
Subtract the three mandatory contributions, SSS, PhilHealth, and Pag-IBIG, then the BIR withholding tax. Contributions are based on salary credits with caps, and tax follows the graduated table with the first 250,000 pesos a year exempt. What remains is your net pay.
What percentage of gross salary do Filipinos typically take home?
At a PHP 50,000 monthly gross salary, mandatory deductions run about 15.5% of gross, leaving roughly 84.5% as take-home. The share falls as salary rises because both the PhilHealth premium and income tax are progressive, so higher earners see a smaller percentage land in their pocket. At very low salaries near the PHP 250,000 annual exemption threshold, take-home can approach 93% to 94% of gross because income tax is minimal.
What is the Pag-IBIG contribution cap for an employee?
The Pag-IBIG fund salary is capped at PHP 10,000 for contribution purposes, so the employee share at 2% is PHP 200 per month regardless of how high the actual salary is. An employee earning PHP 20,000 and one earning PHP 200,000 both pay the same PHP 200 Pag-IBIG deduction. The employer matches this with its own PHP 200 contribution on top.
Does the gross-to-net calculation include overtime or bonuses?
This calculator models the mandatory picture for a regular monthly salary and does not include overtime pay, night-shift differential, performance bonuses, or holiday premiums. Those items have their own rules: holiday pay and overtime may be exempt from tax under certain conditions, while performance bonuses above the PHP 90,000 threshold become part of taxable income. For a payslip that includes variable pay, add those components to your gross and recalculate using the take-home pay calculator that supports the 13th-month option.