Gross to Net Salary Calculator
Calculate your Philippine take-home pay after SSS, PhilHealth, Pag-IBIG deductions, and BIR withholding tax. Updated for 2026.
How Net Salary is Computed in the Philippines
Your net take-home pay is your gross salary minus mandatory deductions and BIR withholding tax:
Net Salary = Gross Salary − Deductions − Withholding Tax
Employment Types
- Private Sector — Deductions: SSS + PhilHealth + Pag-IBIG. Standard BIR withholding tax applies.
- Government — Deductions: GSIS (9% personal share) + PhilHealth + Pag-IBIG instead of SSS.
- Self-Employed — Pays SSS + PhilHealth. Pag-IBIG is voluntary.
- Minimum Wage — SSS + PhilHealth + Pag-IBIG still apply, but exempt from income tax under the TRAIN Law.
- Kasambahay — For household helpers earning ₱5,000/month or below, the employer shoulders all SSS, PhilHealth, and Pag-IBIG contributions.
Night Differential
Work performed between 10:00 PM and 6:00 AM earns a 10% premium on the hourly rate. This is added to gross pay before deductions and tax.
Overtime Pay
Overtime work on regular days is paid at 125% of the hourly rate. Rates are higher for rest days, special holidays, and regular holidays.
Under the TRAIN Law, employees earning ₱250,000 or less annually (approximately ₱20,833/month) are exempt from income tax.
Legal basis: Labor Code Art. 83 (Normal Hours of Work), RA 10963 (TRAIN Law), PD 851 (13th Month Pay), RA 11199 (SSS), RA 11223 (PhilHealth), RA 9679 (Pag-IBIG)
Read our complete Workers' Benefits guide →Taxable vs Non-Taxable Allowances
Allowances from your employer fall into two categories that affect your net pay differently:
- Taxable allowances (transportation, communication, housing, representation) — added to your gross pay before deductions and tax. They increase your SSS, PhilHealth, Pag-IBIG contributions and income tax.
- Non-taxable / De minimis allowances (rice subsidy, uniform, medical, laundry) — added to your take-home pay after tax. You keep the full amount tax-free, as long as each benefit stays within BIR-prescribed ceilings.
Key De Minimis Benefit Ceilings (2026)
Updated under BIR Revenue Regulations No. 29-2025, effective January 6, 2026:
| Benefit | Tax-Free Ceiling |
|---|---|
| Rice subsidy | ₱2,500/month |
| Uniform & clothing | ₱8,000/year |
| Medical assistance | ₱12,000/year |
| Laundry allowance | ₱400/month |
| Meal allowance (OT/night shift) | 30% of regional minimum wage |
| Christmas & anniversary gifts | ₱6,000/year |
Excess amounts above these ceilings may still be tax-exempt if your combined 13th month pay and other benefits total ₱90,000 or less per year.
Read our complete Allowances & De Minimis Benefits guide →Frequently Asked Questions
How is net salary computed in the Philippines?
Net salary is computed by subtracting mandatory deductions from your gross salary. The deductions include SSS, PhilHealth, and Pag-IBIG contributions (employee share), plus BIR withholding tax on the remaining taxable income.
What are the mandatory salary deductions in the Philippines?
Every employed Filipino has three mandatory deductions: SSS (Social Security System), PhilHealth (Philippine Health Insurance Corporation), and Pag-IBIG or HDMF (Home Development Mutual Fund). These contributions are shared between the employee and employer.
Are minimum wage earners exempt from income tax in the Philippines?
Yes. Under the TRAIN Law (RA 10963), minimum wage earners are exempt from income tax. However, they are still required to pay SSS, PhilHealth, and Pag-IBIG contributions.