Philippines Take-Home Pay After SSS, PhilHealth and Pag-IBIG

The direct answer: three employee shares, three different rules

Most payslips in the Philippines show three mandatory employee deductions: SSS, PhilHealth and Pag-IBIG. Each one has its own base, its own rate and its own ceiling, so you cannot apply one percentage to your whole salary and get the right result. The employer pays its own share on top, and those employer amounts never come out of your pay.

The SSS rule comes from the Social Security Act of 2018, Republic Act No. 11199. SSS Circular 2024-006 set the schedule that took effect in January 2025. The total contribution is 15% of the monthly salary credit for employed members, split as 5% from the employee and 10% from the employer. The salary credit runs from ₱5,000 to ₱35,000, so your share is at least ₱250 and at most ₱1,750 a month. The official schedule is published on sss.gov.ph.

The PhilHealth rule comes from the Universal Health Care Act and PhilHealth Advisory No. 2025-0002, issued for January 2025. The premium is 5.0% of monthly basic salary, with an income floor of ₱10,000 and a ceiling of ₱100,000. The total is shared equally between employer and employee. The employee's half therefore runs from ₱250 to ₱2,500 a month.

The Pag-IBIG rule comes from HDMF Circular No. 460, which took effect in February 2024 under Republic Act No. 9679, the Home Development Mutual Fund Law of 2009. It set the Maximum Fund Salary at ₱10,000. An employee whose monthly compensation is ₱1,500 or below pays 1%. Above ₱1,500, the employee pays 2% of the fund salary, which can never be more than ₱10,000 times 2%. The employer pays 2% on the same base.

You will still find published tables that show older figures. Some show a 14% SSS rate with a 4.5% employee share, which was the 2024 schedule. Others show a ₱5,000 Pag-IBIG cap, which applied before February 2024. Both are out of date for payroll in 2025 and 2026.

How the figure is worked out, step by step

Start with the monthly basic salary written in the employment contract, not the total package. The PhilHealth advisory defines the monthly basic salary as the fixed basic rate, and says it excludes sales commission, overtime pay, allowances, 13th month pay, bonuses and other gratuity payments. That exclusion catches many first-time payroll checks, because allowances are often included by mistake.

Then apply the three rules in this order, which is also the order most payroll systems use:

1. SSS: find the salary credit bracket that contains your monthly pay, then take 5% of that salary credit.
2. PhilHealth: take 5% of your basic salary, using the ₱10,000 floor and ₱100,000 ceiling, then take half.
3. Pag-IBIG: take 2% of your pay up to ₱10,000 (or 1% if pay is ₱1,500 or below).
4. Add the three employee shares together, then subtract the total from gross pay. This gives the amount that is used to compute withholding tax.

The table below shows the employee-side rule for each contribution. Employer shares are shown only for context.

Withholding tax is the last step. Under the TRAIN Law, Republic Act No. 10963, the employer applies the Bureau of Internal Revenue withholding table to taxable compensation after the mandatory employee contributions are removed. This page does not calculate the tax itself, because the table changes and depends on the rest of your pay. Your payroll team or the BIR tables on bir.gov.ph will give that figure.

Worked example: ₱25,000 monthly basic salary

Take an employee with a monthly basic salary of ₱25,000 and no non-taxable allowances. The three employee shares are calculated as follows.

• SSS: ₱25,000 falls in the bracket with a salary credit of ₱25,000. Employee share at 5% is ₱1,250.
• PhilHealth: 5% of ₱25,000 is ₱1,250 in total. The employee pays half, which is ₱625.
• Pag-IBIG: ₱25,000 is above the ₱10,000 Maximum Fund Salary, so the base is ₱10,000. At 2%, the employee pays ₱200.

Total employee contributions are ₱2,075. Subtracting that from gross pay gives taxable compensation of ₱22,925 before the withholding table is applied. Take-home pay before withholding tax is therefore ₱22,925. The actual net pay will be lower once the BIR withholding amount is removed. The same employee on a ₱50,000 basic salary would still pay ₱200 to Pag-IBIG, but ₱2,500 to PhilHealth and ₱1,750 to SSS, which shows how the caps change the result at higher pay.

Cases that change the answer

Pay below the thresholds changes the numbers. At ₱1,500 or below, Pag-IBIG takes 1% from the employee, not 2%. SSS still applies its minimum of ₱250 at the lowest bracket. PhilHealth still applies its ₱10,000 floor, which means a person earning ₱8,000 pays on ₱10,000, so the employee share is ₱250.

High pay hits the caps. A salary credit above ₱35,000 does not increase SSS beyond ₱1,750. PhilHealth stops at a ₱100,000 base, so the employee share does not pass ₱2,500. Pag-IBIG stops at ₱200. At a ₱150,000 monthly basic salary, the three employee shares total ₱4,450, which is the highest combined employee amount under these rules.

Contract type changes who pays. A self-employed or voluntary member pays the full SSS rate of 15% and the full Pag-IBIG rate of 4%, with no employer to split the cost. Household workers, called kasambahay, follow a separate schedule under SSS Circular 2024-007. Land-based overseas Filipino workers follow SSS Circular 2024-010, which sets a higher minimum salary credit of ₱8,000. Part-time and project-based staff are covered by the same formulas on their actual monthly pay, but the way a partial month is handled depends on the employer's payroll.

Minimum service and resignation are not covered by a rule this page could verify. This research did not find a minimum period of employment for these three contributions. It also did not find a rule for how a mid-month resignation is split across payroll. Treat those points as questions for the employer's payroll team before you assume a figure.

Common mistakes

The most frequent error is applying an old rate. Schedules from 2024 used a 14% SSS total and a ₱5,000 Pag-IBIG base. A payslip that still uses those numbers in 2025 or 2026 is out of date.

The second error is charging Pag-IBIG on full salary. A person earning ₱30,000 pays ₱200, not ₱600. The third is including allowances in the PhilHealth base, which the advisory excludes. The fourth is confusing the salary credit with actual pay. SSS uses the bracket that contains your pay, so a salary of ₱16,700 is taken at the bracket's salary credit, not at the exact amount.

The last error is treating take-home as final. The number on the payslip after the three contributions is before withholding tax. Year-end adjustments and any bonus or 13th month amounts above the tax-exempt limit also change the final tax.

What to check with HR, payroll or a lawyer

Start with the basic salary in the contract, because every calculation depends on it. Ask HR which allowances are excluded from the PhilHealth base, and confirm the SSS salary credit bracket used on the payslip. Then compare the payslip with the current tables on sss.gov.ph, philhealth.gov.ph and pagibigfund.gov.ph. The figures on this page come from the agencies' own circulars and advisories, but this review did not open the live tables on each site, so verify them before setting up a payroll run.

Automation can handle the arithmetic, the bracket lookup and the cap checks. It cannot confirm what is in an employee's contract, and it cannot decide how a partial month or a special pay type should be treated. A person must check those points, and must check the withholding figure against the BIR table in force.

How employers take routine payroll checks off their staff with AI workers

Many employers rebuild these deductions every payroll run by hand in a spreadsheet. An AI worker can take the routine part of that job. It can read the payroll export, apply the bracket, floor and ceiling rules to each employee, and flag any salary change that moves someone into a different bracket. A person then reviews the flagged cases, approves the remittance schedule and handles the exceptions. This explains the rule in general terms; it is not legal or tax advice for your case.