Philippine Mandatory Contributions 2026

Official rates, formulas, legal bases, and worked examples for every deduction on your payslip — in plain language.

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PhilHealth (PHIC)

Philippine Health Insurance Corporation · National Health Insurance Act (RA 7875 as amended by RA 11223)

5.0%
Total premium rate (2026)
2.5%
Employee share
2.5%
Employer share
₱500
Minimum monthly premium (floor salary ₱10k)
₱5,000
Maximum monthly premium (ceiling ₱100k)
Formula: Monthly Premium = min(max(Gross Salary, ₱10,000), ₱100,000) × 5%. Employee and employer each pay half.
Monthly SalaryEffective BaseTotal PremiumEE ShareER Share
₱8,000₱10,000 (floor)₱500.00₱250.00₱250.00
₱20,000₱20,000₱1,000.00₱500.00₱500.00
₱50,000₱50,000₱2,500.00₱1,250.00₱1,250.00
₱100,000+₱100,000 (ceiling)₱5,000.00₱2,500.00₱2,500.00
Self-employed / Freelancers: Pay the full 5% (both shares) themselves. Minimum premium ₱500/mo.
Kasambahay ≤ ₱5,000: Household employer shoulders the full premium. Above ₱5,000, normal 50/50 split applies.
Benefits include: In-patient hospitalization, out-patient procedures, maternity, Z benefit packages for catastrophic illness, and PhilHealth Konsulta for primary care. Register members at philhealth.gov.ph.

Official Sources

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SSS (Social Security System)

Social Security Act of 2018 · RA 11199

15%
Total contribution rate (2025–2026)
5%
Employee share of MSC
10%
Employer share of MSC
₱5,000
Minimum MSC
₱35,000
Maximum MSC
How it works: SSS uses a bracket table — your salary is mapped to a Monthly Salary Credit (MSC), and contributions are a fixed percentage of that MSC. Employers additionally pay an Employees' Compensation (EC) premium of ₱10 (MSC ≤ ₱14,750) or ₱30 (MSC > ₱14,750).
Salary RangeMSCEE (5%)ER (10%)ECTotal
Below ₱5,250₱5,000₱250₱500₱10₱760
₱5,250 – ₱5,749.99₱5,500₱275₱550₱10₱835
₱19,750 – ₱20,249.99₱20,000₱1,000₱2,000₱30₱3,030
₱24,750 – ₱25,249.99₱25,000₱1,250₱2,500₱30₱3,780
₱34,750 and above₱35,000₱1,750₱3,500₱30₱5,280

WISP — Workers' Investment and Savings Program

For members with MSC above ₱20,000, the excess contribution (15% of the amount above ₱20,000) goes into WISP — a mandatory provident fund that earns dividends and is payable upon retirement or total disability. WISP is separate from the regular SSS retirement benefit.

Benefits include: Sickness, maternity, retirement, disability, death, funeral, salary loan, and calamity loan benefits.
Self-employed / Voluntary: Pay both employee and employer shares (15% of MSC). Choose your MSC voluntarily, subject to minimum of your last posted salary.

Official Sources

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Pag-IBIG Fund (HDMF)

Home Development Mutual Fund · RA 9679 · Pag-IBIG Circular No. 460 (2024)

2%
Employee contribution rate
2%
Employer contribution rate
₱10,000
Monthly Fund Salary (MFS) cap (Circular 460, 2024)
₱200
Maximum employee contribution/month
₱200
Maximum employer contribution/month
Formula: Contribution = min(Salary, ₱10,000) × 2%. For salaries ≤ ₱1,500, the employee rate is 1% (employer stays at 2%). Maximum mandatory contribution is ₱200 each per Circular 460 (2024) which raised the MFS cap from ₱5,000 to ₱10,000.
SalaryRateEEERTotal (mandatory)
₱1,500 or below1% / 2%₱15–₱30₱30₱45–₱60
₱5,0002% / 2%₱100₱100₱200
₱10,0002% / 2%₱200₱200₱400
₱30,000+2% / 2%₱200 (capped)₱200 (capped)₱400

Voluntary Contributions (Top-up)

Members may contribute above the mandatory ₱200 to grow their Pag-IBIG savings faster. Voluntary top-ups earn annual dividends (historically 6–8%) and improve your eligibility for housing loans. There is no statutory ceiling on voluntary contributions.

Key Benefits: Multi-purpose loan (up to ₱6M), housing loan (up to ₱6.5M at 6.375% for socialized housing), calamity loan, and modified Pag-IBIG II savings program.

Official Sources

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BIR Withholding Tax (TRAIN Law)

Bureau of Internal Revenue · RA 10963 (TRAIN) · Effective 2023 onwards

How it works: Taxable income = Gross Salary − mandatory deductions (PhilHealth + SSS + Pag-IBIG employee shares). Annual taxable income is computed and tax is looked up from the bracket table, then divided by 12 for monthly withholding.
Annual Taxable IncomeTax Due
₱0 – ₱250,000₱0 (exempt)
₱250,001 – ₱400,00015% of excess over ₱250,000
₱400,001 – ₱800,000₱22,500 + 20% of excess over ₱400,000
₱800,001 – ₱2,000,000₱102,500 + 25% of excess over ₱800,000
₱2,000,001 – ₱8,000,000₱402,500 + 30% of excess over ₱2,000,000
Over ₱8,000,000₱2,202,500 + 35% of excess over ₱8,000,000
Important: This is withholding tax — your employer remits it to BIR on your behalf. Actual tax liability may differ after filing your annual ITR (BIR Form 1700/1701) which accounts for 13th month pay, de minimis benefits, fringe benefits, and other exemptions.
Exempt: 13th month pay and other bonuses up to ₱90,000 are tax-exempt. De minimis benefits (rice allowance, uniform, medical) have separate exemptions.
Break-even salary: Employees earning ~₱20,833/month (₱250,000/year) gross have zero withholding tax after mandatory deductions, depending on contribution levels.

Official Sources

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GSIS (Government Service Insurance System)

For government employees only · RA 8291

Important: Government employees are covered by GSIS, not SSS. GSIS contributions are computed differently and generally cannot be transferred to SSS or vice versa.
9%
Employee share of basic monthly salary
12%
Government (employer) share
21%
Total contribution rate
Formula: Employee pays 9% × Basic Monthly Salary. The government agency pays 12% × Basic Monthly Salary. No salary credit cap applies — it is a flat percentage of actual basic pay.
Basic SalaryEE (9%)Gov't (12%)Total
₱15,000₱1,350₱1,800₱3,150
₱30,000₱2,700₱3,600₱6,300
₱60,000₱5,400₱7,200₱12,600

Additional Programs

GSIS members are also covered by GSIS Financial Assistance Loan (GFAL), Emergency Loan, and the eCard system for benefit access. Unlike SSS, GSIS retirement benefit is computed based on years of service and average salary, not on total contributions.

  • Retirement benefit: Lump sum or monthly pension depending on service length
  • Survivorship benefit for dependents
  • Optional GSIS Enhanced Portability Act (RA 7699) for members with dual service in public and private sectors

Official Sources

  • GSIS Official Website
  • RA 8291 — Government Service Insurance System Act of 1997
  • RA 7699 — Portability Law (public-to-private sector)
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OFW Contributions (Overseas Filipino Workers)

Land-based and sea-based workers · RA 10022 · SSS Circular 2023-010

OFWs are voluntary members of SSS, PhilHealth, and Pag-IBIG. They pay both the employee and employer shares themselves. Continued coverage is optional but highly recommended to maintain benefits access.
AgencyRate / AmountWho PaysMinimumMaximum
SSS15% of MSCOFW (both sides)MSC ₱8,250 (Circular 2023-010)MSC ₱35,000
PhilHealth5% of salaryOFW (full amount)₱500/month (floor ₱10k)₱5,000/month (ceiling ₱100k)
Pag-IBIG2% of MFSOFW (both sides)₱400/month total₱400/month mandatory

Why OFWs should maintain contributions

Active SSS coverage entitles OFWs to sickness, maternity, disability, retirement, and death benefits even while abroad. Gaps in contributions reduce the benefit amount and may disqualify members from some benefits.

PhilHealth coverage for OFWs extends to immediate family (dependents) who remain in the Philippines — a significant benefit for families with children in school or elderly parents.

Pag-IBIG contributions build savings for housing loans upon return. Land-based OFWs may also apply for housing loans while abroad through authorized agents.

SSS OFW Minimum MSC ₱8,250: Per SSS Circular 2023-010, land-based OFWs must contribute on a minimum MSC of ₱8,250 regardless of actual income declared — higher than the regular ₱5,000 minimum for local members.
Where to pay: SSS — SSS overseas offices, OWWA, or accredited banks. PhilHealth — PhilHealth overseas collection partners or online via PhilHealth portal. Pag-IBIG — accredited collecting partners and overseas banks.

Official Sources

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Side-by-Side Comparison

All mandatory contributions at a glance

AgencyRateEE Max/moER Max/moSalary CapLegal Basis
PhilHealth5% total₱2,500₱2,500₱100,000RA 7875 / RA 11223
SSS15% of MSC₱1,750₱3,530MSC ₱35,000RA 11199
Pag-IBIG2% + 2%₱200₱200MFS ₱10,000RA 9679
GSIS21% total9% of salary12% of salaryNo capRA 8291
BIR (WHT)0–35%Varies—No capRA 10963 (TRAIN)
Quick tip: An employed private sector worker earning ₱30,000/month will typically have ₱1,500 (PhilHealth EE) + ₱1,250 (SSS EE) + ₱200 (Pag-IBIG EE) = ₱2,950 in total mandatory deductions before income tax. Use our calculator for your exact figures.

Quick Reference: Deductions by Salary (2026)

Private sector employee deductions using 2026 official rates. BIR tax excluded — use the calculator for exact tax figures.

Gross Salary PhilHealth EE SSS EE Pag-IBIG EE Total Deducted Est. Net Pay
₱10,000₱250.00₱250.00₱100.00₱600.00₱9,400.00
₱20,000₱500.00₱900.00₱100.00₱1,500.00₱18,500.00
₱30,000₱750.00₱1,350.00₱100.00₱2,200.00₱27,800.00
₱40,000₱1,000.00₱1,600.00₱200.00₱2,800.00₱37,200.00
₱50,000₱1,250.00₱1,750.00₱200.00₱3,200.00₱46,800.00
₱100,000₱2,500.00₱1,750.00₱200.00₱4,450.00₱95,550.00

SSS EE capped at MSC ₱35,000 (max ₱1,750). Pag-IBIG capped at MFS ₱10,000 (max ₱200). PhilHealth floor ₱10,000 / ceiling ₱100,000.

For complete net pay including BIR income tax: ← Back to Calculator · Philippines Salary Calculator 2026 · Net Pay Calculator 2026