BIR Graduated Income Tax Rates
Rates from 1 January 2023 onward, on annual taxable compensation:
| Taxable income a year | Rate | Tax |
|---|---|---|
| ₱0 to ₱250,000 | 0% | None |
| Over ₱250,000 to ₱400,000 | 15% | of the excess over ₱250,000 |
| Over ₱400,000 to ₱800,000 | 20% | ₱22,500 plus 20% of the excess |
| Over ₱800,000 to ₱2,000,000 | 25% | ₱102,500 plus 25% of the excess |
| Over ₱2,000,000 to ₱8,000,000 | 30% | ₱402,500 plus 30% of the excess |
| Over ₱8,000,000 | 35% | ₱2,202,500 plus 35% of the excess |
Your share of SSS, PhilHealth and Pag-IBIG is subtracted first. That means ₱20,833.33 a month of taxable pay, or a little more in basic salary, carries no income tax.
Employers use the BIR withholding table in Annex E, which splits the same brackets into daily, weekly, semi monthly and monthly steps. In December they compare what was withheld with the tax due for the whole year, so a raise mid year is settled in the last payroll.
SSS Contribution Schedule
SSS takes 15% of the monthly salary credit: 10% from the employer, 5% from you. The credit is your pay rounded into ₱500 steps, from ₱5,000 to ₱35,000. On ₱30,000 the credit is ₱30,000 and your share is ₱1,500 a month.
Contributions on credits above ₱20,000 go to the MySSS Pension Booster, a personal savings account inside SSS. The maximum employee share is ₱1,750 a month, while the employer pays twice that, plus a small Employees' Compensation premium that never touches your pay.
PhilHealth and HDMF Contributions
- PhilHealth: 5% of monthly basic salary, shared equally, so 2.5% from you. The base is at least ₱10,000 and at most ₱100,000, so your share runs from ₱250 to ₱2,500 a month.
- Pag-IBIG (HDMF): 2% of a fund salary of up to ₱10,000, which is ₱200 a month at most. Your employer adds the same.
On ₱30,000: PhilHealth ₱750 and Pag-IBIG ₱200 a month.
13th Month Pay and the 90,000 Peso Exemption
Employers must pay a 13th month pay of at least one twelfth of a year's basic salary by 24 December. It is tax-free up to ₱90,000 together with other bonuses and benefits. PhilHealth also leaves it out of the salary it charges on.
On ₱30,000 a month the whole ₱30,000 is exempt. At ₱120,000 a month, ₱30,000 of the 13th month becomes taxable. Untick the box to see twelve months only: ₱318,510 net a year.
Worked Example on 30,000 Pesos a Month
- Annual basic ₱360,000; contributions ₱18,000 SSS, ₱9,000 PhilHealth, ₱2,400 Pag-IBIG
- Taxable compensation ₱330,600; tax 15% of ₱80,600: ₱12,090
- 13th month pay ₱30,000, fully exempt
- Net pay: ₱26,542.50 a regular month and ₱348,510 for the year
Total deductions are 10.6% of everything paid, including the 13th month.
Net Pay at Six Monthly Salaries
| Basic a month | SSS | PhilHealth | Pag-IBIG | Tax | Net a month |
|---|---|---|---|---|---|
| ₱20,000 | ₱1,000 | ₱500 | ₱200 | ₱0 | ₱18,300 |
| ₱25,000 | ₱1,250 | ₱625 | ₱200 | ₱313.75 | ₱22,611.25 |
| ₱30,000 | ₱1,500 | ₱750 | ₱200 | ₱1,007.50 | ₱26,542.50 |
| ₱50,000 | ₱1,750 | ₱1,250 | ₱200 | ₱4,568.33 | ₱42,231.67 |
| ₱80,000 | ₱1,750 | ₱2,000 | ₱200 | ₱10,887.50 | ₱65,162.50 |
| ₱150,000 | ₱1,750 | ₱2,500 | ₱200 | ₱29,512.50 | ₱116,037.50 |
Tax shown as a monthly average. The 13th month pay comes on top of each row.
Semi Monthly Pay and What Is Taxed
Most employers pay on the 15th and the 30th. Each payday is half the monthly figure, ₱13,271.25 on ₱30,000, though some split the contributions unevenly between the two.
- Taxed: basic pay, overtime, commissions and allowances above the de minimis limits.
- Not taxed: de minimis benefits such as rice subsidy within BIR limits, and the 13th month up to ₱90,000. Minimum wage earners pay no income tax on their basic pay.
Assumptions and Sources for the Philippines
- Private sector employee on a fixed monthly basic salary for the whole year, not a minimum wage earner.
- SSS on basic pay only; overtime and allowances would raise it for some workers.
- No other bonuses; the 13th month is exactly one month of basic pay.
Sources: BIR revenue regulations and the withholding tax table, SSS contribution schedule, PhilHealth advisories, and Pag-IBIG Circular 460. Rates for 2026. For Indonesian pay, open the Indonesia Gross to Net Calculator.
Frequently Asked Questions
How much is 30,000 pesos net a month?
About ₱26,542.50 in 2026 after SSS, PhilHealth, Pag-IBIG and withholding tax.
How much is the SSS contribution in 2026?
5% of the monthly salary credit for the employee, from ₱250 to ₱1,750 a month.
Is 13th month pay taxable?
Only the part above ₱90,000 a year, counted together with other bonuses and benefits.
What salary is tax-free in the Philippines?
Taxable compensation up to ₱250,000 a year after your contributions is not taxed, along with minimum wage pay.
How much is PhilHealth for employees?
2.5% of monthly basic salary, between ₱250 and ₱2,500 a month.
What is the most I pay to Pag-IBIG?
₱200 a month, which is 2% of the ₱10,000 maximum fund salary.
Why is my net pay lower in some cutoffs?
Many companies take SSS, PhilHealth and Pag-IBIG from only one of the two monthly paydays, so that cutoff looks smaller even though the month adds up to the same figure.