Free founder tool · 2026 rates
What does a hire really cost?
Enter a monthly salary to see SSS, PhilHealth, Pag-IBIG, and withholding tax, the employee's take-home pay, and what the role costs you each month and year.
What this hire costs you
₱33,980a month
Salary plus ₱3,980 in employer contributions.
- Per year, with 13th month
- ₱437,760
- Take-home pay, each
- ₱26,542.45
- On top of salary
- 13.3%
| Item | Employee pays | Employer pays |
|---|---|---|
| SSS (credit ₱30,000) | ₱1,500 | ₱3,000 |
| SSS employees' compensation | — | ₱30 |
| PhilHealth | ₱750 | ₱750 |
| Pag-IBIG | ₱200 | ₱200 |
| Withholding tax | ₱1,007.55 | — |
| Total | ₱3,457.55 | ₱3,980 |
Basic salary only, at 2026 rates. A planning estimate, not payroll advice.
The rates
2026 contributions and tax, in brief
SSS
15% of salary credit
Employer 10%, employee 5%, on a monthly salary credit from ₱5,000 to ₱35,000. The employer adds ₱10 or ₱30 for employees' compensation.
PhilHealth
5% of basic salary
Split equally. Salaries under ₱10,000 pay on ₱10,000; salaries over ₱100,000 pay on ₱100,000.
Pag-IBIG
2% each, up to ₱200
Computed on up to ₱10,000 of monthly pay. Employees earning ₱1,500 or less pay 1%.
Withholding tax
0% to 35%
From the BIR table in force since 2023, on salary after the employee's SSS, PhilHealth, and Pag-IBIG. Up to ₱20,833 a month is not taxed.
Questions
Frequently asked questions
- How much does it cost to hire an employee in the Philippines?
- Budget the salary plus roughly 6% to 15% (lower at higher salaries) for the employer's SSS, PhilHealth, and Pag-IBIG contributions, plus a 13th month pay equal to one month's basic salary each year. A ₱30,000 salary costs about ₱33,980 a month, or ₱437,760 a year with the 13th month.
- What are the SSS contribution rates in 2026?
- The total is 15% of the monthly salary credit: 10% from the employer and 5% from the employee. The salary credit ranges from ₱5,000 to ₱35,000, so the most an employee pays is ₱1,750 a month and the most an employer pays is ₱3,500, plus employees' compensation.
- How much is the PhilHealth contribution in 2026?
- 5% of the monthly basic salary, split equally between employer and employee. The salary used is at least ₱10,000 and at most ₱100,000, so each side pays between ₱250 and ₱2,500 a month.
- How much is the Pag-IBIG contribution?
- 2% each from the employer and the employee, on up to ₱10,000 of monthly compensation, so at most ₱200 each. Employees earning ₱1,500 or less contribute 1%.
- How is withholding tax on salary computed?
- Subtract the employee's SSS, PhilHealth, and Pag-IBIG from the monthly salary, then apply the BIR withholding table. Nothing is withheld up to ₱20,833 a month; above that the rate rises in steps from 15% to 35% on the excess.
- What does this calculator leave out?
- Allowances, overtime, night differential, holiday pay, and de minimis benefits, which change both cost and tax. Minimum wage earners are exempt from income tax. Treat the result as a planning estimate and confirm payroll with your accountant.
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