Philippines salary calculator 2026
Free Philippines salary calculator 2026: net take-home pay for regular employees. TRAIN graduated income tax (0% up to PHP 250,000), SSS, PhilHealth and Pag-IBIG employee contributions. Educational, not tax advice.
by Simon Bodych
Methodology & sources
Methodology - Philippines (2026)
Educational model for tax year 2026, currency PHP - not a payroll system, not a tax return, not tax advice. Employment is a monthly model (annual = month x 12); self-employed is an annual model. Income tax uses the "2023 onward" TRAIN graduated schedule, in force since 1 January 2023 and carried into 2026. The SSS / PhilHealth / Pag-IBIG figures are the latest published schedules (SSS 2025, PhilHealth 2024-2025 terminal, Pag-IBIG February 2024) carried into 2026 and flagged provisional. Out of scope: the PHP 90,000 13th-month / benefits exemption, de minimis benefits, the minimum-wage-earner exemption and substituted filing.
Employment (regular employee)
- Graduated income tax on annual TAXABLE compensation (TRAIN schedule, NIRC sec. 24(A)(2)(a)): first PHP 250,000 at 0%, then 15% / 20% / 25% / 30% / 35% on the bands up to 400k / 800k / 2m / 8m and above. Taxable compensation = gross minus the mandatory employee contributions, which are excluded from gross income under NIRC sec. 32(B)(7)(f).
- SSS (Social Security System), RA 11199 + SSS Circular 2024-006: 15% total of the Monthly Salary Credit (MSC) from January 2025, split employee 5% / employer 10%; MSC range PHP 5,000 to PHP 35,000. Above MSC 20,000 the upper band funds the Mandatory Provident Fund (MPF / WISP). The model clamps the gross to the MSC range and applies the 5% employee share.
- PhilHealth (RA 11223 + Circular 2024-0009): 5% of monthly basic salary shared equally (2.5% employee / 2.5% employer), income floor PHP 10,000 and ceiling PHP 100,000/month.
- Pag-IBIG / HDMF (RA 9679 + HDMF Circular 460): employee 1% up to PHP 1,500 and 2% above, employer 2%, base capped at PHP 10,000/month so the employee share is at most PHP 200/month.
Sources: Bureau of Internal Revenue (BIR) - NIRC of 1997 as amended by RA 10963 (TRAIN), sec. 24(A)(2)(a), graduated rates effective 2023, Social Security System (SSS) - RA 11199 + Circular 2024-006 (15% rate, MSC 5,000-35,000, MPF/WISP), PhilHealth - RA 11223 + Circular 2024-0009 (5% premium, floor 10,000 / ceiling 100,000), Pag-IBIG / HDMF - RA 9679 + Circular No. 460 (1%/2% rates, base cap PHP 10,000).
Self-employed (individual / professional)
- A self-employed individual whose gross sales / receipts do not exceed the PHP 3,000,000 VAT threshold chooses between two income-tax options (NIRC sec. 24(A)(2)(b)).
- Graduated option: the same graduated income tax (0/15/20/25/30/35%) on NET income (gross receipts minus allowable expenses), PLUS the 3% percentage tax on gross receipts (NIRC sec. 116, the non-VAT business tax). Above the threshold the 12% VAT replaces the 3% percentage tax (VAT out of scope).
- 8% flat option: a single 8% income tax on gross receipts in EXCESS of PHP 250,000, in lieu of BOTH the graduated income tax and the 3% percentage tax. Available only at or below the PHP 3,000,000 VAT threshold; above it the engine forces the graduated option. Business expenses are irrelevant under this option.
- Mixed-income earners electing 8% apply it to the FULL gross receipts (no PHP 250,000 deduction); this model assumes purely self-employed income. Self-employed SSS / PhilHealth / Pag-IBIG (declared-income basis) and the 40% Optional Standard Deduction are out of scope.
Sources: Bureau of Internal Revenue (BIR) - NIRC sec. 24(A)(2)(b) (graduated vs 8% option, PHP 250,000 deduction, PHP 3,000,000 VAT threshold), BIR - NIRC sec. 116 (3% percentage tax for non-VAT taxpayers) and Revenue Regulations 8-2018 (graduated and 8% options).