How take-home pay is computed
Your net pay is your basic salary minus your share of government contributions and the income tax withheld by your employer:
take-home pay = salary − SSS − PhilHealth − Pag-IBIG − withholding tax
The deductions (2025 rates)
| Deduction | Employee share |
|---|---|
| SSS | 5% of your monthly salary credit (₱5,000 to ₱35,000), so ₱250 to ₱1,750 |
| PhilHealth | 2.5% of your basic salary (floor ₱10,000, ceiling ₱100,000), so ₱250 to ₱2,500 |
| Pag-IBIG | 2% of up to ₱10,000, so at most ₱200 |
| Withholding tax | Based on the TRAIN Law table, after the contributions above are subtracted |
Income tax table (TRAIN Law, 2023 onwards)
| Annual taxable income | Tax |
|---|---|
| ₱250,000 and below | 0 |
| Over ₱250,000 to ₱400,000 | 15% of the excess over ₱250,000 |
| Over ₱400,000 to ₱800,000 | ₱22,500 + 20% of the excess over ₱400,000 |
| Over ₱800,000 to ₱2,000,000 | ₱102,500 + 25% of the excess over ₱800,000 |
| Over ₱2,000,000 to ₱8,000,000 | ₱402,500 + 30% of the excess over ₱2,000,000 |
| Over ₱8,000,000 | ₱2,202,500 + 35% of the excess over ₱8,000,000 |
Earning ₱20,833 a month or less in taxable income means no income tax, since that is ₱250,000 a year.
Frequently asked questions
Why is my payslip slightly different?
Employers may compute tax per pay period, include overtime or allowances in taxable pay, or apply year-end adjustments. Minimum wage earners are exempt from income tax on their minimum wage.
Is my 13th month pay taxed?
Not up to ₱90,000 combined with other benefits. Use our 13th month pay calculator to check.
General information based on 2025 contribution rates. Check SSS, PhilHealth, Pag-IBIG and the BIR for the latest figures.