Step 2 of 6
From gross pay to take-home pay
Your gross pay is your salary before deductions. Your take-home pay is what lands in your account. In between come your mandatory contributions and income tax. Knowing them helps you read your payslip and plan with the right number.
Your mandatory contributions (as of November 2026)
SSS
- You pay
- 5% of your monthly salary credit (₱5,000 to ₱35,000)
- Your employer pays
- 10%
- What you get
- Pension, sickness, maternity, disability, unemployment and loans
PhilHealth
- You pay
- 2.5% of basic salary
- Your employer pays
- 2.5%
- What you get
- Help with hospital and some outpatient costs
Pag-IBIG
- You pay
- Usually ₱200 a month
- Your employer pays
- ₱200
- What you get
- Savings with dividends, plus housing and cash loans
| Program | You pay | Your employer pays | What you get |
|---|---|---|---|
| SSS | 5% of your monthly salary credit (₱5,000 to ₱35,000) | 10% | Pension, sickness, maternity, disability, unemployment and loans |
| PhilHealth | 2.5% of basic salary | 2.5% | Help with hospital and some outpatient costs |
| Pag-IBIG | Usually ₱200 a month | ₱200 | Savings with dividends, plus housing and cash loans |
Income tax basics
- The first ₱250,000 a year is tax-free. That's about ₱20,833 a month of taxable income. Above that, rates start at 15% of the excess.
- 13th month pay and other bonuses are tax-free up to ₱90,000 a year, combined.
- Freelancers and self-employed earners with gross receipts under ₱3 million can choose a flat 8% on gross receipts above ₱250,000, instead of the graduated rates plus percentage tax.
Example: Juan's payslip
- Monthly gross pay
- ₱28,000
- SSS
- −₱1,400
- PhilHealth
- −₱700
- Pag-IBIG
- −₱200
- Income tax
- −₱730
- Take-home pay
- ₱24,970
Contributions come out first, and tax is computed on what's left. Figures are rounded, so your payslip may differ slightly.