Salary breakdown

Salary breakdown calculator

Enter a monthly salary. You see the whole waterfall in order: gross pay, each government share, the taxable income that is left, the withholding tax, and the net pay.

Use gross monthly pay before any deduction.

Common salaries

Taxable income used

₱22,925.00

Gross pay less the three employee shares. Annualised it is ₱275,100.00.

Same salary, other rules

SSS on ₱25,000.00₱1,250.00
PhilHealth on ₱25,000.00₱625.00
Pag-IBIG on ₱25,000.00₱200.00
Withholding tax on ₱25,000.00₱313.75

Net pay

₱22,611.25

Total deductions

₱2,388.75

Gross pay for the month₱25,000.00
SSS employee share₱1,250.00
PhilHealth employee share₱625.00
Pag-IBIG employee share₱200.00
=Taxable income₱22,925.00
Withholding tax₱313.75
=Net pay₱22,611.25

How it works

Follow the pay waterfall

This example uses one full month and no extra deductions.

1

Start with gross pay

The fixed monthly salary is ₱25,000.00. For a semi-monthly cutoff, the product splits fixed pay into two period amounts.

2

Remove employee government shares

Subtract SSS ₱1,250.00, PhilHealth ₱625.00, and Pag-IBIG ₱200.00. Employer shares do not reduce employee pay.

3

Find taxable income

₱25,000.00₱1,250.00 ₱625.00₱200.00 = ₱22,925.00. Annual taxable income is ₱275,100.00.

4

Apply tax, then get net pay

Annual tax is ₱3,765.00. Monthly tax is ₱313.75. Net pay is ₱22,611.25.

Worked example

From ₱25,000.00 gross to net pay

Monthly view. No loans, company deductions, allowances, or other pay items.

StageAmountGross retained
Gross monthly pay₱25,000.00100.00%
After SSS employee share₱23,750.0095.00%
After PhilHealth employee share₱23,125.0092.50%
Taxable income after Pag-IBIG₱22,925.0091.70%
Net pay after withholding tax₱22,611.2590.44%

Questions

What people ask about salary breakdowns

Why is taxable income lower than gross pay?

The product subtracts the employee SSS, PhilHealth, and Pag-IBIG shares before it computes withholding tax.

Do employer contributions reduce my pay?

No. Employer SSS, PhilHealth, Pag-IBIG, and EC amounts are employer costs. They do not reduce employee net pay.

Can the real payslip have more deductions?

Yes. Loans and configured monthly deductions can add more lines. This worked example has none.

Why can two cutoffs have different deductions?

The business can split government contributions across both cutoffs or take the full monthly amount on the first or last cutoff. Tax is still computed for each pay period.

A calculator is useful. A complete payroll is better.

Timekeep applies the same deduction order to every payslip and keeps employee shares separate from employer costs.