Want to know your exact take-home pay?

Use our Philippine Salary Calculator to compute your net salary after tax, SSS, PhilHealth, and Pag-IBIG deductions as an Employed Worker or Future Employed Worker.

Updated with the latest contribution rates for 2026.

BIR Income Tax Table

You might have heard of the TRAIN Law or Republic Act No. 10963, also called the Tax Reform for Acceleration and Inclusion Act.

When this law took effect, employees in both government and private sectors enjoyed a big decrease in the income tax deducted from their monthly salary. On the other hand, some goods and services in the market became a bit more expensive.

If you’re curious about how much tax you are actually paying to the Philippine government, check the income tax table below.

This Revised Withholding Tax Table has been in effect since January 1, 2023, and will continue to apply unless new changes are announced by the government.

• Annual Income up to PHP 250,000: Exempt from income tax.
• Over PHP 250,000 to PHP 400,000: 15% of the excess over PHP 250,000.
• Over PHP 400,000 to PHP 800,000: PHP 22,500 plus 20% of the excess over PHP 400,000.
• Over PHP 800,000 to PHP 2,000,000: PHP 102,500 plus 25% of the excess over PHP 800,000.
• Over PHP 2,000,000 to PHP 8,000,000: PHP 402,500 plus 30% of the excess over PHP 2,000,000.
• Over PHP 8,000,000: PHP 2,202,500 plus 35% of the excess over PHP 8,000,000.

How to Compute Deductions From Your Salary

When you see your payslip, you’ll notice that the gross salary (the amount written in your contract) is not the same as the net salary (the actual money you receive). The difference comes from mandatory deductions required by law.

Here’s how to understand it in 3 simple steps.

Step 1: Deduct Mandatory Government Contributions

Every employee in the Philippines is required to pay contributions to:

• SSS (or GSIS for government workers) – for retirement, disability, maternity, and other benefits
• PhilHealth – for health and hospitalization coverage
• Pag-IBIG Fund – for housing, savings, and loans

Example (₱25,000 monthly salary):

• SSS: ₱1,250.00
• PhilHealth: ₱625.00
• Pag-IBIG: ₱200.00
  Total Contributions = ₱2,075.00

Step 2: Subtract Income Tax (TRAIN Law)

After removing contributions, what’s left is your taxable income. This is where the BIR TRAIN Law Income Tax Table applies.

Example:

• Monthly Salary: ₱25,000
• Less Contributions: ₱2,075.00
• Taxable Income = ₱22,925.00

Looking at the tax table, ₱22,925.00 falls under Bracket 2:
Income Tax = ₱0 + 15% of the excess over ₱20,833

= (₱22,925.00 – ₱20,833) × 15%
= ₱2,092 × 15%
= ₱313.75 income tax (rounded off = 313.8)

Step 3: Compute Your Net Take-Home Pay

Finally, subtract both contributions and tax from your gross salary.

Net Salary = Gross Salary – (Contributions + Income Tax)

= ₱25,000 – (₱2,075 + ₱313.75)
= ₱25,000 – ₱2,388.75
= ₱22,611.25

This is the actual cash you’ll receive each month.

But wait — there’s more!

Even if contributions are deducted from your salary, they are still for you. On top of your share, your employer also adds their own contributions to SSS, PhilHealth, and Pag-IBIG.

This means your total compensation package is actually bigger than your net pay because those contributions build up your:

• SSS benefits (pension, sickness, maternity, retirement, etc.)
• PhilHealth coverage (medical and hospital benefits)
• Pag-IBIG savings and housing benefits

So when you look at your payslip, you can check not only your net salary, but also the value of employer contributions, which are still counted as part of your benefits.

References

1. eLibrary Judiciary. (n.d.). [Document Title]. The Supreme Court E-Library. Retrieved from https://elibrary.judiciary.gov.ph/
2. Social Security System (SSS). (2024). 2025 SSS contribution table. https://www.sss.gov.ph/wp-content/uploads/
3. PhilHealth. (n.d.). Contribution table v2. https://www.philhealth.gov.ph/p
4. Triple i Consulting. (2025, June 25). Pag-IBIG contribution table 2025: How to compute for your employees. Triple i Consulting. https://www.tripleiconsulting.com/pag-ibig-contribution