A Philippine payslip carries four mandatory deductions before tax: SSS (5% of salary, on the ₱5,000–35,000 bracket), PhilHealth (2.5% of basic salary, ₱10,000–100,000 bracket), and Pag-IBIG (2% up to ₱10,000) — then income tax on what’s left, using the TRAIN brackets in force since 2023 (unchanged for 2026), with the first ₱250,000 a year tax-free.
Estimates only — not tax advice. Results are computed from official 2026 tax rules; always verify important decisions with the relevant tax authority.
Step 1 — Enter your monthly gross salary in ₱.
Step 2 — Enter your monthly basic salary. PhilHealth is 2.5% of basic — not gross — so this number changes the result.
Step 3 — The calculator applies SSS, PhilHealth and Pag-IBIG, then annualises the remainder for income tax.
Step 4 — Read your monthly net. Your 13th-month pay (tax-free to ₱90,000/year with bonuses) sits outside monthly pay.
All three contributions come off before income tax is computed:
| Contribution | Employee rate | Monthly range |
|---|---|---|
| SSS | 5% of salary (₱5k–35k MSC) | ₱250 – 1,750 |
| PhilHealth | 2.5% of basic (₱10k–100k) | ₱250 – 2,500 |
| Pag-IBIG | 2% (up to ₱10k fund salary) | max ₱200 |
Income tax then uses the 2023+ TRAIN schedule (no 2025/2026 changes):
| Annual taxable income | Tax due |
|---|---|
| Not over ₱250,000 | 0% |
| ₱250,000 – 400,000 | 15% of excess over ₱250,000 |
| ₱400,000 – 800,000 | ₱22,500 + 20% of excess over ₱400,000 |
| ₱800,000 – 2,000,000 | ₱102,500 + 25% of excess over ₱800,000 |
| ₱2,000,000 – 8,000,000 | ₱402,500 + 30% of excess over ₱2,000,000 |
| Over ₱8,000,000 | ₱2,202,500 + 35% of excess over ₱8,000,000 |
Example 1 — ₱50,000/month: SSS ₹1,750 + PhilHealth ₹1,250 + Pag-IBIG ₹200 = ₹3,200. Taxable = ₹561,600/year → tax = ₹22,500 + 20% × ₹161,600 = ₹54,820/year (₹4,568.33/month). Net = ₱42,231.67/month.
Example 2 — ₱25,000/month (basic ₹25,000): SSS ₹1,250 + PhilHealth ₹625 + Pag-IBIG ₹200 = ₹2,075. Taxable ₹275,100/year → tax ₹3,765/year (₹313.75/month). Net = ₱22,611.25/month.
1. Computing PhilHealth on gross. It’s 2.5% of basic salary — on an allowance-heavy package this cuts the deduction a lot.
2. Using the old 2018–2022 brackets. Many online calculators still run the obsolete TRAIN schedule — the 2023+ rates (15/20/25/30/35%) are what’s in force.
3. Forgetting SSS is capped. Above ₱35,000/month salary, SSS stays at ₹1,750 — it doesn’t keep rising.
| Applicable period | Calendar year 2026 (TRAIN brackets in force since 1 Jan 2023) |
| Based on | BIR (RA 10963 TRAIN, RR 29-2025); SSS Circular 2024-006; PhilHealth Circular 2025-001; Pag-IBIG Circular 460 |
| Last verified | 24 October 2026 |
| Assumes | Standard employee; no de minimis benefits or 13th-month in the monthly figure |
| Doesn’t cover | De minimis benefits (RR 29-2025); 13th-month/bonus ₱90k ceiling; MPF/WISP split detail |
Sources: Figures compiled from: BIR, SSS, PhilHealth, Pag-IBIG.
Spotted an error? Report it — corrections backed by an official source get fixed first.
SSS (5%), PhilHealth (2.5% of basic), Pag-IBIG (2%) — all deducted before income tax — plus monthly income-tax withholding on the remainder.
Tax-free up to a combined ₱90,000/year together with bonuses and incentives; the excess is taxable.
No. The old per-dependent personal exemption was abolished under TRAIN — the ₱250,000 zero-rate bracket replaced it.
No. The current 15/20/25/30/35% schedule took effect on 1 January 2023 and is unchanged for 2026.
📖 How salary deductions work in Philippines — full guide
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