Net Pay Philippines
Everything you need to understand your actual take-home pay — SSS, PhilHealth, Pag-IBIG, and income tax deductions explained in plain language for Filipino workers.
Last updated: July 2026 · BIR · SSS · PhilHealth · Pag-IBIG · TRAIN Law RA 10963
What is Net Pay?
Your net pay — or take-home pay — is what actually gets deposited into your bank account every payday. It’s your gross salary minus four mandatory deductions: your SSS contribution, your PhilHealth premium, your Pag-IBIG contribution, and — if your income is above the tax-exempt threshold — withholding tax under the TRAIN Law. Understanding these deductions helps you verify your payslip, plan your budget, and know exactly what you’re entitled to.
Many Filipino workers don’t realize that SSS, PhilHealth, and Pag-IBIG deductions are not losses — they’re contributions to programs that pay you back. SSS builds your retirement pension and gives you access to loans and benefits. PhilHealth gives you and your family healthcare coverage. Pag-IBIG gives you housing loan access and short-term loans. The only deduction that does not return to you directly is the withholding tax — which funds government services.
Deduction Rates at a Glance
SSS: 5% of MSC (max ₱1,750/month)
PhilHealth: 2.5% of basic salary (max ₱2,500/month)
Pag-IBIG: 1–2% of salary (max ₱200/month)
Income Tax: Exempt up to ₱20,833/month taxable income · TRAIN Law
Monthly Deductions Summary
| Deduction | Rate | Minimum | Maximum |
|---|---|---|---|
| SSS | 5% of MSC | ₱250 | ₱1,750 |
| PhilHealth | 2.5% of salary | ₱250 | ₱2,500 |
| Pag-IBIG | 1–2% of salary | — | ₱200 |
| Withholding Tax | 0–35% progressive | ₱0 (exempt below ₱20,833) | No cap |
Pag-IBIG: employees earning ₱1,500/month or below contribute 1%; above ₱1,500, 2% — both capped at ₱200. SSS and PhilHealth minimums apply at the lowest salary bracket and rise with salary.
Sources: SSS · PhilHealth · Pag-IBIG · BIR TRAIN Law
What You’ll Find in This Section
- Net Pay Calculator — Enter your monthly salary and get your exact take-home pay with full breakdown of all deductions
- Guide: How Net Pay Works Philippines — Plain-language explanation of every deduction, how tax is computed, and what the numbers on your payslip mean
Also in Philippines:
📋 Rates verified — Official sources: sss.gov.ph · philhealth.gov.ph · pagibigfund.gov.ph · bir.gov.ph · TRAIN Law RA 10963
⚠️ This is general information, not financial, tax, or legal advice. KnowMyGovt is an independent service — not affiliated with or endorsed by the SSS, PhilHealth, Pag-IBIG, the BIR, DOLE, or the Philippine government — and is not liable for decisions made in reliance on it.
