How to Compute Your Take-Home Pay in the Philippines (2026)
Your take-home pay (net sweldo) is your gross salary minus three statutory contributions — SSS, PhilHealth, and Pag-IBIG — and then minus BIR withholding tax. Here's exactly how each piece works, the 2026 tax brackets, and a worked example — then get your precise number free in seconds.
Based on the 2025 statutory contribution schedules and the BIR 2023-onward graduated tax table. Educational estimate — confirm with your payroll/HR and the agencies for your exact figures.
Step 1: The three statutory contributions
Before any tax, three mandatory contributions come out of your salary. These aren't taxes — they fund your own benefits (pension, health, housing):
| Contribution | Employee share | Applied to |
|---|---|---|
| SSS | 5% employee share | of your monthly salary credit (MSC), 2025 schedule |
| PhilHealth | 2.5% employee share | of salary, between a ₱10,000 floor and ₱100,000 ceiling |
| Pag-IBIG | 2% (or 1% if ≤ ₱1,500) | of the monthly salary credit, employee share |
Step 2: BIR withholding tax (2026 brackets)
Tax applies to your taxable income — gross salary minus the contributions above. The first ₱250,000 per year is tax-exempt; income above that is taxed in bands under the BIR 2023-onward graduated table:
| Annual taxable income | Rate | Tax due |
|---|---|---|
| ₱0 – ₱250,000 | 0% | Tax-exempt |
| Over ₱250,000 – ₱400,000 | 15% | 15% of the excess over ₱250,000 |
| Over ₱400,000 – ₱800,000 | 20% | ₱22,500 + 20% of the excess over ₱400,000 |
| Over ₱800,000 – ₱2,000,000 | 25% | ₱102,500 + 25% of the excess over ₱800,000 |
| Over ₱2,000,000 – ₱8,000,000 | 30% | ₱402,500 + 30% of the excess over ₱2,000,000 |
| Over ₱8,000,000 | 35% | ₱2,202,500 + 35% of the excess over ₱8,000,000 |
Worked example: ₱30,000/month
On a ₱30,000 monthly gross (₱360,000/year), roughly ₱1,350–₱2,000/month goes to SSS + PhilHealth + Pag-IBIG. That leaves an annual taxable income in the 15% band — but because the first ₱250,000 is exempt, the actual tax is modest, and your net take-home lands well above ₱26,000/month. The exact figure depends on your precise salary credit and contributions, which is why it's worth running your real number:
Compute your exact take-home pay free →
A note on 13th month pay and bonuses
Your 13th month pay and other benefits are tax-exempt up to ₱90k per year combined — only the amount above that is taxed. Planning where your 13th month should go? The 13th Month Game Plan splits it across emergency fund, utang, goals, and Pamasko.
Frequently asked questions
How do you compute take-home pay in the Philippines?
Start with your monthly gross salary, subtract your three statutory contributions — SSS (5% of your salary credit), PhilHealth (2.5%), and Pag-IBIG (2%) — to get your taxable income, then subtract BIR withholding tax based on the graduated table. What remains is your net take-home pay. PesoPilot's free calculator does all of this from just your gross salary.
How much tax is deducted from my salary?
Only your income above ₱250,000 per year is taxed, and only after contributions are removed. Rates step up: 15% on the next band, then 20%, 25%, 30%, and 35% for the highest earners. Because the first ₱250,000 is exempt, many minimum-wage and entry-level earners pay little or no income tax.
Is 13th month pay taxable in the Philippines?
Your 13th month pay and other benefits are tax-exempt up to ₱90,000 per year combined. Only the amount above ₱90,000 is added to your taxable income. For most employees the full 13th month lands tax-free.
Why is my payslip different from an online calculator?
Allowances, de minimis benefits, payroll timing, and year-end annualization can move your real payslip versus an estimate. A difference within about 8% usually means the estimate is close. Use PesoPilot's built-in payslip comparison to check your actual net and tax against the estimate, and flag larger gaps to verify with HR or payroll.
Do minimum wage earners pay income tax?
Statutory minimum wage earners are exempt from income tax on their basic wage, holiday pay, overtime, night-shift differential, and hazard pay. They still contribute to SSS, PhilHealth, and Pag-IBIG, but those are savings/benefits, not taxes.
Take-home pay for a specific salary
Want the exact numbers for your salary without typing anything? See the full breakdown for a ₱25,000, ₱30,000, or ₱50,000 monthly salary — or browse every salary from ₱15,000 to ₱150,000.
Free PesoPilot tools
- Take-Home Pay Calculator — your exact net salary, per month and per cutoff.
- PH Money Health Check — a 2-minute score of your savings, debt, and protection.
- Money Game Plans — plan your sweldo, 13th-month, and next money move.
- Best digital bank rates — where to grow the sweldo you keep.
Educational estimate only — not tax or payroll advice. Contribution schedules and tax rules change; the figures here reflect the 2025 statutory schedules and the BIR 2023-onward graduated table. Your real payslip can differ due to allowances, de minimis benefits, and year-end annualization — confirm with your payroll/HR and SSS, PhilHealth, Pag-IBIG, and the BIR.
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