1. What is Philippine Salary Tax?

The Philippine salary tax consists of four main components: Income Tax (based on progressive tax brackets), SSS (Social Security System), PhilHealth (national health insurance), and Pag-IBIG (Home Development Mutual Fund). These mandatory deductions are withheld by employers from employees' salaries.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Income Tax — Calculated based on 2025 progressive tax brackets
• SSS — 4.5% of monthly salary, capped at PHP 1,350
• PhilHealth — 4% of monthly salary, capped at PHP 1,800
• Pag-IBIG — PHP 100 for salaries above PHP 5,000

3. Importance of Tax Calculation

Details: Accurate tax calculation ensures compliance with Philippine tax laws, proper budgeting, and understanding of take-home pay. It helps both employers and employees plan their finances.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Are these rates accurate for 2025?
A: This calculator uses projected 2025 rates based on current legislation. Always verify with BIR, SSS, PhilHealth, and Pag-IBIG for official rates.

Q2: Are there exemptions to these taxes?
A: Minimum wage earners are exempt from income tax but still contribute to SSS, PhilHealth, and Pag-IBIG.

Q3: How often are these deductions made?
A: These are monthly deductions for regular employees. Some voluntary contributors may pay differently.

Q4: Can I adjust my contributions?
A: SSS and Pag-IBIG allow voluntary higher contributions, but PhilHealth contributions are fixed percentages.

Q5: Are bonuses taxed differently?
A: Yes, bonuses are subject to different tax rules and are not included in this calculator.