How much of a raise survives tax and contributions.
Net raise per month
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Gross raise
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Kept percentage
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Why the headline raise shrinks
A raise never lands in full. The number your manager quotes is a gross figure, and between that and your bank account sit the graduated income tax run by the Bureau of Internal Revenue and the mandatory contributions to SSS, PhilHealth, and Pag-IBIG. This tool computes your take-home pay before and after the raise and reports the difference, so you see the net increase rather than the headline one. It also shows the kept percentage, which is the share of each extra peso that actually survives the journey to your pocket.
The key idea is that a raise is taxed at the margin. Your existing salary has already used up the lower tax bands, so the additional income piles on top and is taxed at your highest applicable rate, not your average one. Under the TRAIN-law structure the calculator models, the first PHP 250,000 of annual taxable income is exempt and the bands climb from there toward 35 percent at the top. The exact bracket figures are the rates this calculator applies, so confirm the current schedule with the Bureau of Internal Revenue before treating any number as settled.
Following PHP 15,000 from gross to pocket
Take the default: a move from PHP 50,000 to PHP 65,000 a month, a gross raise of PHP 15,000. What happens to the contributions matters as much as the tax. At PHP 50,000 your SSS and Pag-IBIG contributions are already at their monthly ceilings, so they do not rise at all when your pay goes up. Only PhilHealth, computed as a percentage of salary, climbs, from PHP 1,250 to PHP 1,625. The rest of the erosion is income tax, and at these salary levels both the old and new taxable incomes sit inside the same 20 percent band, so the raise is taxed at 20 percent at the margin.
| Per month | At PHP 50,000 | At PHP 65,000 |
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So of the PHP 15,000 gross raise, PHP 11,700 actually reaches you each month, and PHP 3,300 goes to higher tax and the PhilHealth bump. Over a year that is roughly PHP 140,400 more in hand. The chart splits the gross raise into the part you keep and the part that is withheld.
When contributions stop mattering
The default already shows the useful quirk: once your salary clears the ceilings for SSS and Pag-IBIG, those deductions freeze, so further raises are eroded only by tax and, until it also caps, PhilHealth. This is why the kept percentage on a raise tends to rise as your salary climbs into ranges where the contributions are pinned. A worker getting a raise from a low base can see contributions and tax both increase, keeping less; a higher earner whose contributions are already maxed keeps more of each additional peso, limited mainly by the marginal tax band they land in.
The opposite edge is the bracket crossing. If a raise pushes your taxable income from one band into the next, the portion above the threshold is taxed at the higher rate, which trims the kept share on that slice. Only the income above the threshold is hit at the higher rate, never your whole salary, but it is worth knowing where the bands sit so a raise does not surprise you. Verify the current thresholds with the Bureau of Internal Revenue.
Negotiating with the kept share in mind
This tool is handy when you are weighing a job offer or a counter. A practical move is to think in net terms: if you need a specific increase in actual take-home, gross it up using the kept percentage rather than assuming the headline raise lands intact. At a 78 percent kept rate, needing PHP 10,000 more in hand means asking for closer to PHP 12,800 gross. The figure also helps when comparing a raise against a non-taxable benefit, since a benefit that escapes tax can be worth more than its peso value suggests. As always, treat the rates here as the calculator's assumptions and confirm them with the BIR, SSS, PhilHealth, and Pag-IBIG.
Does my 13th-month pay change the take-home math?
This tool intentionally leaves the 13th-month pay out to keep the monthly comparison clean, matching the gross-to-net approach used across the site. In reality your 13th-month pay and other benefits are tax-exempt up to a PHP 90,000 ceiling, and anything above that is taxable. A raise lifts your 13th-month pay too, since it is based on salary, so factor that in separately when you look at your full annual package.
Why isn't my whole raise taxed at one flat rate?
Because the system is graduated, not flat. Each band of income is taxed at its own rate, so your raise is taxed at the marginal rate for the band it falls into, while the income beneath it keeps its lower rates. Your average or effective rate across all your income is lower than the marginal rate on the raise. That gap is exactly why a raise feels smaller than expected.
Do bonuses behave the same way as a salary raise?
Partly. A performance bonus is taxable compensation and is taxed at your marginal rate much like a raise, but it does not recur monthly, so it does not change your steady contributions the way a permanent salary increase can. The 13th-month and other benefits enjoy the PHP 90,000 exemption that ordinary bonuses do not. Treat a one-off bonus as a single taxable lump rather than feeding it into this monthly comparison.