Salary Calculator
Compute your monthly salary based on Philippine labor standards.
How to Compute Your Monthly Salary in the Philippines
Understanding how your monthly salary is computed is essential for every Filipino worker. Whether you are a minimum wage earner, a rank-and-file employee, or a professional, knowing how your gross and net pay are calculated helps you verify your payslip, plan your budget, and assert your labor rights under Philippine law.
Basic Salary Computation Formula
The standard formula used by Philippine employers to compute monthly salary from a daily rate is:
Most Philippine companies use 22 working days per month as the standard (based on 5-day workweek, 52 weeks/year ÷ 12 months). Some use the "factor 313" method for computing daily equivalents from a monthly salary: Annual Pay ÷ 313 = Daily Rate, where 313 accounts for holidays and rest days.
Mandatory Payroll Deductions
Philippine law requires employers to deduct three mandatory government contributions from employee salaries each month:
| Contribution | Employee Share | 2024 Monthly Cap | Coverage |
|---|---|---|---|
| SSS (Social Security System) | 4.5% of MSC | ₱1,350 | Sickness, maternity, disability, retirement |
| PhilHealth | 2.5% of basic salary | ₱500 | Hospitalization and medical benefits |
| Pag-IBIG (HDMF) | 2% of monthly salary | ₱200 | Housing loans and savings |
MSC = Monthly Salary Credit. Rates are as of 2024. Check official agency websites for the latest contribution tables.
Minimum Wage Rates by Region (2024)
Minimum wages in the Philippines are set by Regional Tripartite Wages and Productivity Boards (RTWPB) and vary per region:
| Region | Non-Agriculture (Daily) | Agriculture (Daily) |
|---|---|---|
| NCR (Metro Manila) | ₱610 | ₱573 |
| Region III (Central Luzon) | ₱420–₱500 | ₱400–₱480 |
| Region IV-A (CALABARZON) | ₱420–₱470 | ₱400–₱450 |
| Region VII (Central Visayas) | ₱444 | ₱424 |
| Region XI (Davao Region) | ₱432 | ₱412 |
| CAR (Cordillera) | ₱390–₱420 | ₱370–₱400 |
Rates are approximate and subject to change. Visit DOLE (dole.gov.ph) for the most current regional rates.
Overtime Pay Rules Under Philippine Labor Law
The Labor Code of the Philippines (Presidential Decree No. 442) mandates overtime pay for work beyond 8 hours per day. The rates are:
- Regular workday OT: Hourly rate + 25% (multiplier: 1.25)
- Rest day / special holiday OT: Hourly rate + 30% (multiplier: 1.30)
- Regular holiday OT: Hourly rate + 50% (multiplier: 1.50)
- Night differential (10PM–6AM): Additional 10% of hourly rate
Frequently Asked Questions — Philippine Salary
How many working days per month does the Philippines use?
Most Philippine employers use 22 working days per month (based on a 5-day workweek). However, some industries use 26 days (6-day workweek). For exact computation, your employment contract and company policy take precedence. DOLE's factor method uses 313 ordinary working days per year.
Is the 13th month pay included in salary computation?
No. The 13th month pay is computed separately as Total Basic Salary Earned in a Year ÷ 12. It is a mandatory benefit under Presidential Decree No. 851 and must be paid on or before December 24 of each year. It is separate from your regular monthly salary.
What is the difference between gross pay and net pay?
Gross pay is your total earnings before any deductions — it includes basic pay, overtime pay, and allowances. Net pay (take-home pay) is gross pay minus mandatory deductions (SSS, PhilHealth, Pag-IBIG) and income tax withholding. This is the actual amount deposited to your account.
Are allowances taxable in the Philippines?
De minimis benefits (small allowances within BIR-prescribed limits) are tax-exempt. These include meal allowances up to ₱25/day, rice subsidy up to ₱2,000/month, and laundry allowance up to ₱300/month. Allowances above these limits are added to taxable income and subject to withholding tax under the TRAIN Law.
Can my employer deduct amounts other than SSS, PhilHealth, and Pag-IBIG?
Yes, but only with your written authorization or if required by law or court order. Common authorized deductions include: income tax withholding, SSS/PhilHealth/Pag-IBIG employer loans, company loans (with written consent), and union dues. Unauthorized deductions violate Article 113 of the Labor Code.