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Deductions Calculator PH: How It Works

Updated · Standard formula, shown below

The calculator for this page is switched off while it is checked. The formula is below, and the worked example in the article shows how to use it by hand.

Deductions Calculator PH: How It Works

This calculator works out the total monthly deductions from a Philippine salary, covering SSS, PhilHealth, and Pag-IBIG contributions, and shows your net take-home pay after these mandatory deductions. You enter your monthly basic salary, and the calculator applies the current contribution tables and formulas to return the breakdown of each deduction and your net pay. The result is an estimate based on standard rates, so check with the official agencies for the latest figures.

Formula

The calculator uses the standard formulas for each mandatory contribution in the Philippines:

  • SSS (Social Security System): Employee share is 4.5% of monthly salary, with a minimum of ₱135 and a maximum of ₱1,125. The formula is: SSS = min(max(salary × 0.045, 135), 1125).
  • PhilHealth: The premium rate is 5% of monthly basic salary, split equally between employee and employer. The employee share is 2.5% of salary, with a floor of ₱250 and a ceiling of ₱2,500. However, for simplicity, many calculators use 5% of salary as the total premium, then halve it. This calculator shows the employee share as PhilHealth = min(max(salary × 0.025, 250), 2500).
  • Pag-IBIG (HDMF): Employee contribution is 2% of monthly salary, capped at ₱100 per month (the employer matches this, but the employee share is what we deduct). The formula is: Pag-IBIG = min(salary × 0.02, 100).

All variables are in Philippine pesos (PHP) per month. The total deduction is the sum of the three, and net pay is salary minus total deductions.

Worked Example

Using the default salary of ₱25,000 per month:

  1. SSS: 25,000 × 0.045 = 1,125. Since 1,125 is within the min/max range, SSS = ₱1,125.00.
  2. PhilHealth: 25,000 × 0.025 = 625. This is above the ₱250 floor and below the ₱2,500 ceiling, so PhilHealth = ₱625.00.
  3. Pag-IBIG: 25,000 × 0.02 = 500. But the cap is ₱100, so Pag-IBIG = ₱100.00.
  4. Total deductions: 1,125 + 625 + 100 = ₱1,850.00.
  5. Net pay: 25,000 − 1,850 = ₱23,150.00.

The calculator shows the same result: SSS ₱1,125, PhilHealth ₱625, Pag-IBIG ₱100, total ₱1,850, and net pay ₱23,150.

When to Use This Calculator

Use this tool when you want a quick estimate of your mandatory deductions for budgeting, job offers, or salary negotiations. It is especially helpful for freelancers, new employees, or HR staff who need a rough figure without opening multiple government websites. The calculator covers only the employee share of SSS, PhilHealth, and Pag-IBIG. It does not include withholding tax, which depends on your taxable income and BIR tax tables. For a full net pay figure including tax, you would need to subtract the withholding tax separately.

How to Read the Results

The first output, Total Deductions, is the sum you will see subtracted from your gross salary on your payslip. The Net Pay is what actually goes into your bank account. If your salary is below ₱10,000, the minimum contributions apply, so your deductions will be higher than the percentage would suggest. If your salary is above ₱25,000, the SSS and Pag-IBIG caps mean your deductions do not increase beyond the maximum, but PhilHealth continues to rise until the ceiling. Always compare the calculator’s output with your payslip; discrepancies may arise from employer-specific benefits or voluntary contributions.

Common Mistakes and Misconceptions

  • Using gross vs. basic salary: These contributions are based on basic salary, not gross pay (which includes overtime, allowances, and bonuses). If you enter gross pay, you will overestimate deductions.
  • Forgetting the caps: Many people assume deductions are a flat percentage. The caps mean that for high salaries, the percentage effectively drops. For example, at ₱100,000 salary, SSS is still ₱1,125 (1.1%), not ₱4,500.
  • PhilHealth change: The rate changed from 4% to 5% in 2024. Old calculators may show outdated figures. Always verify the current rate.
  • Employer share confusion: This calculator shows only the employee share. The employer also pays a matching share, but that is not deducted from your salary.
  • Tax not included: Withholding tax is often the largest deduction for mid-to-high earners. This calculator omits it, so the net pay shown is higher than your actual take-home if you earn above the taxable threshold.

Limitations of the Formula

The formulas are based on standard tables as of 2025, but government agencies can adjust rates. SSS and PhilHealth have periodic changes, and Pag-IBIG has a separate schedule for contributions above ₱5,000. This calculator does not handle:

  • Overtime pay, holiday pay, or other compensation that affects taxable income.
  • Withholding tax (requires BIR tax table).
  • Voluntary or additional contributions to SSS or Pag-IBIG.
  • Employee benefits like HMO or union dues.

For exact figures, use the official SSS, PhilHealth, and Pag-IBIG calculators on their websites, or consult your HR department.

Frequently Asked Questions

Does this calculator include withholding tax?

No. It only computes SSS, PhilHealth, and Pag-IBIG. Withholding tax is a separate deduction based on your taxable income after these contributions and other allowances. To get your full net pay, you need to subtract the tax as per BIR tables.

Why is my Pag-IBIG contribution always ₱100 even if my salary is high?

Pag-IBIG employee contribution is capped at ₱100 per month. For salaries above ₱5,000, the 2% rate would exceed ₱100, so the cap applies. That is why you see a flat ₱100 for most salaries.

What if I earn ₱10,000 or less?

For very low salaries, minimum contributions apply: SSS has a floor of ₱135, PhilHealth has a floor of ₱250, and Pag-IBIG has a floor of ₱200 (but the 2% of ₱10,000 is ₱200, so it equals the floor). The calculator handles these minimums automatically.

Are these rates updated for 2025?

The calculator uses the rates effective as of early 2025: SSS 4.5% (with caps), PhilHealth 5% premium rate (employee share 2.5%), and Pag-IBIG 2% (capped at ₱100). However, rates can change, so always verify with official sources.

Can I use this for freelancers or self-employed?

Yes, but only if you voluntarily pay these contributions. Freelancers can choose their monthly salary base, but the minimum contributions apply. This calculator assumes a regular employee where the employer also pays a share.

Why does my payslip show a different amount?

Your payslip may include withholding tax, voluntary contributions, or company-specific deductions. Also, if your employer uses a different salary base (e.g., includes allowances), the numbers will differ. This calculator gives a standard estimate, not a legal document.

Related

Formula used
in salary | Monthly Basic Salary | PHP | 25000 | 0
out sss | SSS Contribution | PHP | min(max(salary * 0.045, 135), 1125) | 2
out philhealth | PhilHealth Contribution | PHP | min(max(salary * 0.05, 500), 5000) | 2
out pagibig | Pag-IBIG Contribution | PHP | min(max(salary * 0.02, 200), 200) | 2
out total | Total Deductions | PHP | sss + philhealth + pagibig | 2
out net | Net Pay After Deductions | PHP | salary - total | 2

Each line is one input (in, sel, list) or one result (out: label, unit, formula, decimals). How the calculators work

Method: the standard formula for this calculation, rounded as each result states. See how the calculators work or report an error.