How to Compute Your Take-Home Pay in the Philippines
Your job offer says one number, but your payslip shows another. That gap is your mandatory deductions at work. Learning to compute your take-home pay is the starting point of every real budget — because you cannot plan around money that was never actually yours.
Gross pay vs net pay
Your gross pay is your salary before any deductions. Your net pay — the take-home — is what actually lands in your account after SSS, PhilHealth, Pag-IBIG, and withholding tax are subtracted. Budgeting off your gross salary is one of the most common money mistakes Filipinos make: it quietly plans to spend money that HR already deducted.
The four main deductions
The important detail: withholding tax is computed on your pay after SSS, PhilHealth, and Pag-IBIG come out — not on your full gross. Those contributions lower your taxable income.
Worked example: a ₱25,000 monthly salary
Here is a rough breakdown of how a ₱25,000 gross salary becomes take-home pay:
Less SSS (employee share) — −₱1,125
Less PhilHealth (employee share) — −₱625
Less Pag-IBIG — −₱200
Taxable income — ₱23,050
Less withholding tax — − per BIR table
Approx. take-home — ~₱22,000
The exact centavos depend on the latest contribution tables, which change from time to time. Always confirm the current SSS, PhilHealth, and Pag-IBIG schedules, or check with your HR, before treating any figure as final. Under current rules, many lower-income earners also fall in the 0% income-tax band, which changes the final number.
Why your net number matters
Once you know your true take-home, every budgeting method finally works. The 50-30-20 rule splits your net pay, your envelopes are funded from your net pay, and your savings target is a percentage of what you actually receive. Build the plan on the real number, and it holds up.
Frequently asked questions
Is withholding tax computed on gross or net pay?
On your pay after SSS, PhilHealth, and Pag-IBIG are deducted — not on the full gross. Those mandatory contributions reduce your taxable income, so the tax is calculated on the smaller figure.
Why is my take-home lower than my basic salary?
Because of the four mandatory deductions: SSS, PhilHealth, Pag-IBIG, and withholding tax. Together they can take a noticeable slice, which is why you should always budget from your net take-home, not your gross.
Do these deductions change?
Yes. Contribution rates and tax tables are updated periodically. Check the latest SSS, PhilHealth, and Pag-IBIG schedules or confirm with your HR, since the exact amounts shift over time.
Run payroll the easy way
Whether you pay yourself or a team, our Payroll & Gov’t Contributions Calculator computes net pay with SSS, PhilHealth, and Pag-IBIG in one sheet. Works in Excel and Google Sheets. Pay via GCash, Maya, or Maribank.