Kodigo Labs ToolsHow your take-home pay is computed
- Gross pay = basic salary + taxable allowances + de minimis benefits.
- Contributions (employee share) are based on your basic salary: SSS is 5% of your Monthly Salary Credit (₱5,000 to ₱35,000) for private employees, GSIS is 9% of your full basic salary for government employees, PhilHealth is 2.5% of your salary (between ₱10,000 and ₱100,000), and Pag-IBIG is 2% of up to ₱10,000.
- Taxable income = basic salary + taxable allowances − contributions. De minimis benefits are not taxed.
- Withholding tax uses the BIR TRAIN table: taxable income × 12 is taxed at the annual rates (0% up to ₱250,000, then 15% to 35%), then divided by 12.
- Take-home pay = gross pay − contributions − withholding tax. If you are paid twice a month, each payday is about half.
Example: Carlo earns a basic salary of ₱30,000 a month with no allowances. His contributions are SSS ₱1,500, PhilHealth ₱750 and Pag-IBIG ₱200, or ₱2,450 in total. His taxable income is ₱27,550, or ₱330,600 a year. Tax is (₱330,600 − ₱250,000) × 15% = ₱12,090 a year, or ₱1,007.50 a month. His take-home pay is ₱30,000 − ₱2,450 − ₱1,007.50 = ₱26,542.50 a month, or ₱13,271.25 every payday.
Government example: Liza is a government employee with the same ₱30,000 basic salary. Her GSIS share is 9% = ₱2,700, plus PhilHealth ₱750 and Pag-IBIG ₱200, or ₱3,650 in total. Her taxable income is ₱26,350, or ₱316,200 a year. Tax is (₱316,200 − ₱250,000) × 15% = ₱9,930 a year, or ₱827.50 a month. Her take-home pay is ₱30,000 − ₱3,650 − ₱827.50 = ₱25,522.50 a month, or ₱12,761.25 every payday.
SSS vs GSIS: why government take-home pay is different
Private-sector workers are members of SSS. Employees of national agencies, local governments, state universities and chartered government corporations are members of GSIS instead. SSS takes 5% of a salary credit that stops at ₱35,000, so the most a private employee pays is ₱1,750 a month. GSIS takes 9% of your whole basic salary with no ceiling, so government employees usually see a bigger deduction, but it also funds larger retirement and life insurance benefits. Both are deducted before withholding tax, and PhilHealth, Pag-IBIG and the BIR tax table are the same for both sectors.
Sample take-home pay (no allowances)
| Basic salary | Sector | Contributions | Tax | Monthly net | Semi-monthly |
|---|---|---|---|---|---|
| ₱15,000 | Private (SSS) | ₱1,325.00 | ₱0.00 | ₱13,675.00 | ₱6,837.50 |
| ₱15,000 | Government (GSIS) | ₱1,925.00 | ₱0.00 | ₱13,075.00 | ₱6,537.50 |
| ₱30,000 | Private (SSS) | ₱2,450.00 | ₱1,007.50 | ₱26,542.50 | ₱13,271.25 |
| ₱30,000 | Government (GSIS) | ₱3,650.00 | ₱827.50 | ₱25,522.50 | ₱12,761.25 |
| ₱100,000 | Private (SSS) | ₱4,450.00 | ₱15,762.50 | ₱79,787.50 | ₱39,893.75 |
| ₱100,000 | Government (GSIS) | ₱11,700.00 | ₱13,950.00 | ₱74,350.00 | ₱37,175.00 |
See the full breakdown of each contribution, including your employer's share, in the SSS, PhilHealth & Pag-IBIG Contribution Calculator. To include bonuses and see your yearly tax, use the Philippine Income Tax Calculator and the 13th Month Pay Calculator.
Frequently asked questions
What deductions are taken from my salary?
For private employees, the mandatory deductions are your SSS, PhilHealth and Pag-IBIG contributions (employee share) and withholding tax. For government employees, GSIS takes the place of SSS. Other deductions like loan payments, HMO upgrades or company cash advances are not included here, so subtract them separately.
What are de minimis benefits?
De minimis benefits are small tax-free allowances allowed by BIR rules, such as rice subsidy up to ₱2,000 a month, uniform and clothing allowance up to ₱7,000 a year, and medical cash allowance for dependents up to ₱1,500 per semester. They are added to your take-home pay without being taxed or counted for contributions.
Why is my withholding tax zero?
Under the TRAIN Law, the first ₱250,000 of annual taxable income is not taxed. That is about ₱20,833 a month after contributions. If your taxable pay is at or below that, no income tax is withheld.
Are minimum wage earners taxed?
No. Statutory minimum wage earners are exempt from income tax on their minimum wage, holiday pay, overtime, night differential and hazard pay. If you earn minimum wage, your take-home pay is your salary minus SSS (or GSIS), PhilHealth and Pag-IBIG only.
Why does my payslip show a slightly different amount?
Employers may compute contributions on different pay items, deduct them on a different cut-off, or apply the BIR withholding table per payroll period. Unpaid absences, overtime and night differential also change your pay. Treat this as a close estimate.
Does this work for government employees?
Yes. Choose "Government (GSIS)" at the top of the calculator. Government employees pay GSIS instead of SSS: 9% of the monthly basic salary with no ceiling, so deductions are usually higher than in the private sector. The GSIS share is deducted before tax, just like SSS. The income tax table, PhilHealth and Pag-IBIG are the same for both.
Is my GSIS contribution taxed?
No. Mandatory GSIS, SSS, PhilHealth and Pag-IBIG contributions are excluded from taxable compensation under the Tax Code (Section 32(B)(7)(f) of the NIRC). That is why the calculator subtracts them before computing withholding tax. Voluntary extra contributions are not excluded.