All three mandatory deductions, employee and employer.
Employee total/mo
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Employer total/mo
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% of gross (employee)
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The three deductions hiding inside one payslip line
Every formally employed Filipino has three statutory contributions pulled from each month's pay: SSS for pensions and short-term benefits, PhilHealth for the national health insurance, and Pag-IBIG for the housing and savings fund. Payroll software often collapses them into a single "government deductions" figure, which hides how each one is computed on a different base and caps at a different point. This tool splits the employee side from the employer side and shows your share as a percentage of gross, so you can see what genuinely leaves your pay versus what your employer carries on top. The employer cost matters even though it never touches your payslip, because it is part of what hiring you actually costs.
How each contribution is built
SSS runs on a monthly salary credit, which is your pay clamped between a floor and a ceiling. As modelled here the employee pays 5 percent of that credit and the employer 10 percent, with the credit ceiling set at PHP 35,000, plus a small employer-only Employees Compensation premium of PHP 10 or PHP 30. PhilHealth, as this calculator applies it, charges a 5 percent premium on basic salary split evenly, so the employee and employer each shoulder 2.5 percent, with the salary base capped at PHP 100,000. Pag-IBIG takes 2 percent from each side, but on a fund salary capped at just PHP 10,000, which makes it the first contribution to flatten out as pay rises. These rates and caps follow the published schedules of the SSS, PhilHealth, and Pag-IBIG, all of which are revised periodically, so treat the figures as the calculator's working assumption and verify the current tables with each agency.
A PHP 30,000 salary, deduction by deduction
Take a worker earning PHP 30,000 in both gross compensation and basic salary, the calculator's defaults. The SSS credit is PHP 30,000 (still under the PHP 35,000 ceiling), so the employee pays 5 percent, or PHP 1,500. PhilHealth is 2.5 percent of PHP 30,000, PHP 750. Pag-IBIG is 2 percent, but on the capped PHP 10,000 fund salary, so PHP 200. The employee total comes to PHP 2,450 a month, about 8.2 percent of gross.
| Contribution | Employee | Employer |
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The employer side is heavier at PHP 3,980 because of the 10 percent SSS share plus the PHP 30 Employees Compensation add-on. Together both sides send PHP 6,430 to the three agencies every month. The bars below set the employee share against the employer share.
Where the percentage stops climbing
A useful judgement this tool surfaces: your contributions do not rise forever with your salary. Pag-IBIG already flatlines at PHP 200 each side once pay clears PHP 10,000, which at PHP 30,000 is well past. SSS keeps growing until the credit hits its PHP 35,000 ceiling, and PhilHealth until basic salary reaches PHP 100,000. So a colleague earning PHP 80,000 pays a noticeably smaller percentage of gross than someone on PHP 30,000, because two of the three deductions have stopped scaling. If you are budgeting a raise, do not assume the deductions grow in lockstep with the headline number.
Why does the employer pay more than I do?
The split is deliberately uneven. SSS is structured so the employer carries 10 percent of the salary credit against your 5 percent, and the employer alone funds the Employees Compensation premium. PhilHealth and Pag-IBIG are even splits. In this example that puts the employer at PHP 3,980 versus your PHP 2,450. The employer remits everything together, your share included, to each agency.
Do these deductions lower my income tax?
Yes. Mandatory SSS, PhilHealth, and Pag-IBIG contributions are excluded from taxable compensation, so they shrink the base your graduated income tax is computed on. That is why your take-home is not simply gross minus tax minus these contributions taken independently; the contributions are subtracted first, then tax is applied to what remains. Confirm the current exclusion treatment with the BIR if you are reconciling a payslip to the centavo.