Net Pay Calculator Philippines 2025-2026
Calculate your take-home salary after SSS, PhilHealth, Pag-IBIG, and tax deductions. Updated 2025 TRAIN Law rates. Free net pay calculator.
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Enter your monthly basic salary before any deductions
How Net Pay is Calculated in the Philippines
Your net pay (take-home salary) is what remains after all mandatory deductions are taken from your gross salary. In the Philippines, employees have four main deductions: SSS, PhilHealth, Pag-IBIG, and withholding tax.
Mandatory Deductions (2025)
| Deduction | Rate | Notes |
|---|---|---|
| SSS | 5% (Employee Share) | Based on MSC brackets (₱5,000 - ₱35,000) |
| PhilHealth | 2.5% (Employee Share) | 5% total, split 50-50 with employer |
| Pag-IBIG | 2% (max ₱200) | Based on ₱10,000 ceiling |
| Withholding Tax | 0% - 35% | Based on TRAIN Law brackets |
TRAIN Law Tax Brackets (Monthly)
| Monthly Taxable Income | Tax Rate |
|---|---|
| ₱0 - ₱20,833 | 0% (Tax Exempt) |
| ₱20,833 - ₱33,333 | 15% of excess over ₱20,833 |
| ₱33,333 - ₱66,667 | ₱1,875 + 20% of excess over ₱33,333 |
| ₱66,667 - ₱166,667 | ₱8,541.67 + 25% of excess over ₱66,667 |
| ₱166,667 - ₱666,667 | ₱33,541.67 + 30% of excess over ₱166,667 |
| Over ₱666,667 | ₱183,541.67 + 35% of excess over ₱666,667 |
Net Pay Formula
Net Pay = Gross Salary - SSS - PhilHealth - Pag-IBIG - Tax
Where Tax is computed on: Gross - SSS - PhilHealth - Pag-IBIG
Example Computation
For an employee earning ₱35,000 monthly:
- SSS (5% of ₱35,000 MSC): ₱1,750
- PhilHealth (2.5% of ₱35,000): ₱875
- Pag-IBIG (2% capped): ₱200
- Taxable Income: ₱35,000 - ₱2,825 = ₱32,175
- Tax (15% of excess over ₱20,833): ₱1,701.30
- Net Pay: ₱30,473.70
What's NOT Included in Taxable Income
- De Minimis Benefits: Meal allowance (₱4,000/month), medical allowance (₱1,500/year), etc.
- 13th Month Pay: Up to ₱90,000 annually
- Mandatory Contributions: SSS, PhilHealth, Pag-IBIG employee share
Note: This calculator provides an estimate based on regular monthly salary.
Actual deductions may vary based on your specific benefits, allowances, and company policies.
Frequently Asked Questions
What deductions are taken from my salary in the Philippines?
Your salary has three mandatory deductions: SSS (5% of MSC), PhilHealth (2.5% of salary), and Pag-IBIG (2%, max ₱200). After these, withholding tax is computed based on your taxable income using TRAIN Law brackets.
How much is the tax exemption under TRAIN Law?
Under the TRAIN Law, annual income up to ₱250,000 is tax-exempt. This translates to monthly income up to ₱20,833. Income above this threshold is taxed progressively from 15% to 35%.
Is 13th month pay taxable?
The 13th month pay and other bonuses are tax-free up to ₱90,000 per year. Any amount exceeding ₱90,000 is added to your taxable income. This calculator focuses on regular monthly salary computation.
How is Pag-IBIG contribution calculated?
For employees earning over ₱1,500/month, the Pag-IBIG contribution is 2% of monthly salary, capped at a maximum of ₱200 (based on ₱10,000 ceiling). Your employer also contributes 2%.
Why is my actual net pay different from the calculator?
Differences may occur due to: (1) Additional company deductions (loans, insurance), (2) Non-taxable allowances not included here, (3) Different SSS bracket rounding, (4) Overtime or holiday pay not reflected. This calculator provides an estimate based on regular monthly salary.