1. What Are Philippine Salary Deductions?

The main salary deductions in the Philippines for 2025 include Income Tax, SSS (Social Security System), PhilHealth (National Health Insurance), and Pag-IBIG (Home Development Mutual Fund) contributions. These are mandatory deductions for most employees.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Income\ Tax \) — Progressive tax based on 2025 tax brackets
• \( SSS \) — Social Security contribution (4.5% of salary, max 1350 PHP)
• \( PhilHealth \) — Health insurance (4% of monthly salary)
• \( Pag-IBIG \) — Fixed 100 PHP monthly contribution

Explanation: The calculator applies the latest 2025 tax brackets and contribution rates to compute each deduction component.

3. Importance of Calculating Deductions

Details: Understanding your deductions helps with financial planning, ensures proper withholding, and verifies that your employer is making correct contributions.

4. Using the Calculator

Tips: Enter your gross monthly salary in PHP. The calculator will compute all mandatory deductions based on 2025 rates.

5. Frequently Asked Questions (FAQ)

Q1: Are these rates accurate for 2025?
A: This calculator uses projected 2025 rates. Actual rates may change based on government announcements.

Q2: Are there exemptions to these deductions?
A: Some special employment arrangements may have different rules. Consult with your HR department.

Q3: How often are SSS contributions updated?
A: SSS contribution tables are typically updated annually. Check the SSS website for the latest rates.

Q4: Is PhilHealth always 4%?
A: The 4% rate is for employees earning above the minimum threshold. Lower rates may apply to minimum wage earners.

Q5: Can I contribute more to Pag-IBIG?
A: Yes, Pag-IBIG allows voluntary higher contributions which may provide better benefits.