Net pay after SSS, PhilHealth, Pag-IBIG, and withholding tax.
Monthly take-home
—
Annual net
—
Contributions/mo
—
Income tax/yr
—
Your breakdown
Updates live as you type
Item
Amount
Worked example
Take a monthly gross and basic salary of 50,000 pesos, with the 13th-month pay included. The three
mandatory contributions come to 3,200 a month: SSS at 5% of the 35,000 salary credit ceiling is 1,750,
PhilHealth at 2.5% of the 50,000 basic is 1,250, and Pag-IBIG at 2% of the 10,000 fund-salary cap is 200.
Over a year that is 38,400 in contributions. Annual gross is 600,000 from salary plus 50,000 of 13th-month
pay, so 650,000, but the 13th month is within the 90,000 tax-free ceiling, so it drops out. Taxable
compensation is 650,000 less 38,400 of contributions less the 50,000 exempt benefit, which is 561,600.
BIR graduated tax on that is 54,820 for the year. Net take-home is about 42,232 a month, or 556,780 a year
once the 13th-month pay is added back.
Item
Amount (PHP)
Monthly gross salary
₱50,000
Contributions (SSS + PhilHealth + Pag-IBIG)
₱3,200
Income tax per month
₱4,568
Monthly take-home
₱42,232
How it is calculated
Take-home pay starts from gross and removes the four standard deductions a Filipino employee faces. First
the calculator works out the three mandatory contributions, each on its own base: SSS on the monthly salary
credit, PhilHealth on basic pay, and Pag-IBIG on a fund salary capped at 10,000. Those are subtracted from
gross to give the income that feeds the BIR graduated tax table, where the first 250,000 pesos a year is
exempt and bands of 15% to 35% apply above it. The 13th-month pay and other benefits are tax-free up to
90,000 a year, so that slice is excluded from taxable income but added back into your annual cash. Net is
gross less contributions less tax, and the monthly figure spreads the annual tax evenly across twelve
months. The result excludes voluntary deductions like company HMO top-ups, loans, or salary advances, which
your own payslip would show on top of this baseline.
Frequently asked questions
What is deducted from a Filipino salary?
Employers withhold three mandatory contributions, SSS, PhilHealth, and Pag-IBIG, plus BIR income tax. The first 250,000 pesos of annual taxable pay is exempt, and up to 90,000 pesos of 13th-month pay and other benefits is also tax-free. Take-home is gross less those four deductions.
How does 13th-month pay affect take-home pay in the Philippines?
13th-month pay equal to one month of basic salary is a legal requirement for most private-sector employees and must be paid by December 24. Up to PHP 90,000 of combined 13th-month pay and other benefits is exempt from income tax, so it is generally tax-free for employees earning at ordinary salary levels. This calculator adds the 13th-month pay into annual cash and excludes the exempt portion from the taxable income base.
At what salary does income tax start in the Philippines?
Income tax kicks in once annual taxable compensation exceeds PHP 250,000, which is roughly PHP 20,833 of gross monthly salary before contributions. An employee earning at or below that annual threshold pays zero income tax. The graduated rates above the exemption run from 15% on the next band up to 35% for income above PHP 8 million per year under the TRAIN law schedule.
Why does this calculator ask for both gross salary and basic salary?
Gross salary includes all cash pay such as allowances, while basic salary is the fixed base before add-ons. PhilHealth contributions and 13th-month pay are based on basic salary, whereas SSS uses gross compensation to determine the salary credit. Entering both figures ensures each deduction is calculated on the correct base. If you have no allowances, set both inputs to the same amount.