1. What are Philippine Salary Deductions?

In the Philippines, salary deductions typically include Income Tax and mandatory contributions to SSS (Social Security System), PhilHealth (Philippine Health Insurance Corporation), and Pag-IBIG (Home Development Mutual Fund). These deductions are required by law for employees.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Income Tax — Based on progressive tax brackets
• SSS — Employee contribution based on salary range
• PhilHealth — 4% of monthly salary (with minimum and maximum)
• Pag-IBIG — PHP 100/month for salaries ≥5000, or 2% for lower salaries

3. Components of Salary Deductions

Income Tax: Progressive tax rates from 0% to 35% based on salary level.
SSS: Social security contribution with fixed amounts per salary bracket.
PhilHealth: Health insurance contribution at 4% of salary (PHP 400-3200 range).
Pag-IBIG: Savings program for housing, with fixed PHP 100/month contribution.

4. Using the Calculator

Tips: Enter your monthly salary in PHP. The calculator will compute all mandatory deductions and show your net take-home pay.

5. Frequently Asked Questions (FAQ)

Q1: Are these rates up to date?
A: This calculator uses 2023 rates. Always verify with BIR, SSS, PhilHealth, and Pag-IBIG for updates.

Q2: Are there exemptions to these deductions?
A: Minimum wage earners are exempt from income tax but still pay mandatory contributions.

Q3: How often are contributions paid?
A: Monthly, deducted from salary and remitted by the employer.

Q4: What's the difference between employee and employer contributions?
A: This calculator only shows employee contributions. Employers pay additional amounts.

Q5: Can I contribute more than the required amounts?
A: For SSS and Pag-IBIG, yes (voluntary contributions). PhilHealth and tax are fixed by law.