Net Pay Calculator Philippines 2026
Use this net pay calculator Philippines to find your exact monthly take-home pay after SSS, PhilHealth, Pag-IBIG and income tax deductions.
Last updated: January 2026 · SSS · PhilHealth · Pag-IBIG · BIR TRAIN Law RA 10963
What is Net Pay?
Net pay — also called take-home pay — is the amount deposited into your bank account every payday. It is your gross monthly salary minus four mandatory deductions: your SSS contribution, your PhilHealth premium, your Pag-IBIG contribution, and your withholding tax if your income is above the tax-exempt threshold. Understanding your net pay helps you verify your payslip, budget accurately, and spot payroll errors before they become long-term problems.
It is also worth knowing that your employer pays additional contributions on your behalf that never appear as deductions on your payslip. Your employer pays 10% SSS, 2.5% PhilHealth and 2% Pag-IBIG on top of your salary — none of that reduces your take-home pay. These employer contributions are separate from yours and are required by law. If your employer is not remitting these contributions, you still have the right to claim your SSS, PhilHealth and Pag-IBIG benefits — the liability falls on the employer, not on you.
Many Filipino workers are surprised when their actual paycheck is lower than their agreed salary. Each deduction goes to a government program that pays you back — SSS builds your retirement and loan eligibility, PhilHealth covers your healthcare, and Pag-IBIG gives you housing loan access. The only deduction that does not return directly to you is the withholding tax, which funds government services.
How Each Deduction is Computed
| Deduction | Employee Rate | Floor | Max |
|---|---|---|---|
| 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% (TRAIN) | ₱0 | No cap |
Pag-IBIG: employees earning ₱1,500/month or below contribute 1%; above ₱1,500, 2% — both capped at ₱200.
TRAIN Law Monthly Tax Brackets
Before withholding tax is computed, your SSS, PhilHealth and Pag-IBIG contributions are deducted from your gross salary to arrive at your taxable income. The TRAIN Law (RA 10963) then applies the following monthly brackets to that taxable income. These graduated rates are the current BIR withholding schedule for compensation income.
| Monthly Taxable Income | Tax Due |
|---|---|
| ₱20,833 and below | ₱0 — Exempt |
| ₱20,833 to ₱33,333 | 15% of excess over ₱20,833 |
| ₱33,333 to ₱66,667 | ₱1,875 + 20% over ₱33,333 |
| ₱66,667 to ₱166,667 | ₱8,542 + 25% over ₱66,667 |
| ₱166,667 to ₱666,667 | ₱33,542 + 30% over ₱166,667 |
| Above ₱666,667 | ₱183,542 + 35% over ₱666,667 |
Frequently Asked Questions
Do minimum wage earners pay income tax?
No. Minimum wage earners are fully exempt from income tax under the TRAIN Law. The NCR daily minimum wage is ₱695, which translates to a monthly salary well below the ₱20,833 taxable income threshold.
Are SSS, PhilHealth and Pag-IBIG contributions taxable?
No. All three mandatory contributions are non-taxable and are deducted from your gross salary before withholding tax is computed. This means the more you contribute to these programs, the lower your taxable income — and the less income tax you pay.
Why doesn't my SSS deduction equal exactly 5% of my salary?
Because SSS uses a Monthly Salary Credit (MSC) bracket table in ₱500 increments. Your contribution is 5% of the bracket your salary falls into — not 5% of your exact salary. The difference is minimal, typically within ₱25, but explains why your SSS deduction may not change with every small raise.
Does this calculator work for government employees?
The TRAIN Law brackets apply to both private and government sector employees. However, government employees contribute to GSIS instead of SSS — use this calculator as a reference for the tax portion only and confirm your GSIS contribution separately.
Also in Philippines:
📋 Rates verified — Official sources: sss.gov.ph · philhealth.gov.ph · pagibigfund.gov.ph · bir.gov.ph · TRAIN Law RA 10963
⚠️ This page is for informational purposes only and does not constitute financial or legal advice. KnowMyGovt is not affiliated with SSS, PhilHealth, Pag-IBIG, BIR, or the Philippine government. Always verify with official government sources.
