Take-home pay, income tax and contributions
In the Philippines your take-home pay depends on BIR income tax and your mandatory contributions to SSS, PhilHealth and Pag-IBIG. These calculators use the 2026 tables so you can see your net pay right away.
From gross to net
Under the TRAIN law, the first ₱250,000 of annual income is tax-free; above that, income tax runs from 15% to 35%. Your mandatory contributions are SSS (5% of salary credit), PhilHealth (2.5%) and Pag-IBIG (1–2%, max ₱200/month).
13th month pay, the peso and inflation
Your 13th month pay (one-twelfth of your basic annual salary) is tax-free up to ₱90,000. As a reference, the US dollar is around ₱60, and since 2010 prices are up about 1.72× (PSA CPI).
Key 2026 numbers
| Item | 2026 value (reference) |
|---|---|
| Income tax (BIR) | 0% up to ₱250,000, then 15% – 35% |
| SSS (employee) | 5% (₱250 – ₱1,750/mo) |
| PhilHealth (employee) | 2.5% |
| Pag-IBIG | 1 – 2% (max ₱200/mo) |
| 13th month pay | tax-free up to ₱90,000 |
| USD / PHP | ~₱60 |
| Inflation since 2010 (CPI) | prices ~1.72× (100 → 172) |
Heads up
These figures are estimates and change with the annual contribution tables. This is not tax advice — use it as a quick estimate.
Common questions
The first ₱250,000 a year is tax-free. Above that, the BIR graduated rates run from 15% to 35%, and only the income within each bracket is taxed at that rate.
They're mandatory contributions: SSS (social security, 5% of your salary credit), PhilHealth (health insurance, 2.5%) and Pag-IBIG (housing fund, 1–2% up to ₱200 a month).
It's tax-free up to ₱90,000. Any amount above that, combined with other benefits, is added to your taxable income.
It equals one-twelfth of your total basic salary earned during the year, so a full year of work gives roughly one extra month's basic pay.
By PSA CPI (base 100 in 2010), prices are around 172 — roughly 72% higher than in 2010.