Your take-home pay is your gross salary minus four deductions: SSS (5% of your salary credit), PhilHealth (2.5% of basic pay), Pag-IBIG (2%, capped at ₱200), and withholding tax — which is charged on your income after those three contributions, not on your raw gross. A ₱25,000 salary nets about ₱22,611 per month.
"Take-home pay" — your net salary — is what actually lands in your bank account after every mandatory deduction. In 2026, a private-sector employee in the Philippines has exactly four things subtracted from gross monthly pay: SSS, PhilHealth, and Pag-IBIG employee contributions, plus withholding tax. Get those four numbers right and the rest is simple subtraction. This guide walks through each one, then shows the full arithmetic for salaries from ₱15,000 to ₱100,000.
The single most common mistake is computing tax on your gross. It isn't — tax is charged on your taxable income, which is gross minus the three contributions. We'll come back to that. If you want to double-check just the SSS piece, see our companion walkthrough on how to compute your SSS contribution. Prefer to skip the math entirely? The Take-Home Pay Calculator runs every step below in one pass.
The formula
Every take-home computation reduces to one line:
The order matters. You total the three contributions first, subtract them from gross to get taxable income, apply the tax table to that figure, and only then subtract the tax. Do it in the wrong order and you'll overstate your tax.
The four deductions, one at a time
1. SSS — 5% of your salary credit
Your employee SSS share is 5% of your Monthly Salary Credit (MSC) — your salary snapped to a ₱500 bracket, with a floor of ₱5,000 and a ceiling of ₱35,000. Because of the ceiling, your SSS deduction never exceeds ₱1,750 (5% of ₱35,000), no matter how high your salary climbs.
2. PhilHealth — 2.5% of basic salary
Your PhilHealth share is 2.5% of your monthly basic salary (the employer pays a matching 2.5%). The salary is clamped between a ₱10,000 floor and a ₱100,000 ceiling, so the employee premium runs from ₱250 up to ₱2,500 per month.
3. Pag-IBIG — 2%, capped at ₱200
Your Pag-IBIG share is 2% of your salary, but only on a fund-salary base capped at ₱10,000 — so the deduction maxes out at ₱200 per month. (It drops to 1% only for salaries of ₱1,500 or below.) For almost every full-time earner, this line is a flat ₱200.
4. Withholding tax — on taxable income, not gross
This is the step people get wrong. First compute taxable income = gross − SSS − PhilHealth − Pag-IBIG. Then apply the BIR monthly withholding table (the TRAIN law, RA 10963):
| Taxable income (monthly) | Tax |
|---|---|
| ₱0 – ₱20,833 | 0 |
| ₱20,833 – ₱33,332 | 15% of excess over 20,833 |
| ₱33,333 – ₱66,666 | 1,875 + 20% over 33,333 |
| ₱66,667 – ₱166,666 | 8,541.80 + 25% over 66,667 |
| ₱166,667 – ₱666,666 | 33,541.80 + 30% over 166,667 |
| ₱666,667 and up | 183,541.80 + 35% over 666,667 |
If your taxable income is ₱20,833 or below, your withholding tax is zero — which is why lower salaries take home nearly all of their gross.
Worked examples (2026)
Here's the full breakdown at seven common salary levels, for a private-sector employee. Every figure assumes all pay is taxable basic salary.
| Gross | SSS | PhilHealth | Pag-IBIG | Tax | Net |
|---|---|---|---|---|---|
| ₱15,000 | 750 | 375 | 200 | 0.00 | 13,675.00 |
| ₱20,000 | 1,000 | 500 | 200 | 0.00 | 18,300.00 |
| ₱25,000 | 1,250 | 625 | 200 | 313.80 | 22,611.20 |
| ₱30,000 | 1,500 | 750 | 200 | 1,007.55 | 26,542.45 |
| ₱40,000 | 1,750 | 1,000 | 200 | 2,618.40 | 34,431.60 |
| ₱50,000 | 1,750 | 1,250 | 200 | 4,568.40 | 42,231.60 |
| ₱100,000 | 1,750 | 2,500 | 200 | 15,762.55 | 79,787.45 |
Notice SSS flattens at ₱1,750 once gross reaches ₱40,000 (the ₱35,000 MSC ceiling), and Pag-IBIG stays at ₱200 throughout.
The ₱25,000 example, step by step
Take the ₱25,000 row and follow the formula exactly:
- Contributions: SSS ₱1,250 + PhilHealth ₱625 + Pag-IBIG ₱200 = ₱2,075.
- Taxable income: 25,000 − 2,075 = ₱22,925.
- Tax: that falls in the 15% band, so (22,925 − 20,833) × 15% = 2,092 × 15% = ₱313.80.
- Net: 25,000 − 2,075 − 313.80 = ₱22,611.20.
So a ₱25,000 gross salary takes home ₱22,611.20 — a total deduction of just under ₱2,389, most of which is your own retirement and health savings rather than tax.
Don't want to do this by hand?
Enter your gross salary and get your exact net — SSS, PhilHealth, Pag-IBIG, and withholding tax broken out line by line, instantly.
Open the Take-Home Pay Calculator →What this computation assumes
The numbers above are the standard case: a private-sector employee whose entire pay is taxable basic salary. A few things can move your real take-home in either direction:
- Non-taxable allowances and de minimis benefits aren't subject to tax, so if part of your package is structured that way, your net will be higher than the table suggests.
- 13th month pay is separate and is tax-exempt up to ₱90,000 per year — it isn't part of the monthly formula above.
- Loans, salary advances, or union dues are voluntary deductions your employer may also net out; they're not part of the four mandatory items.