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Knowunity Philippines
12/20/2025
Business Math
Payroll Deductions: SSS, PhilHealth, Pag-IBIG, and Withholding Tax
36
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Dec 20, 2025
•
Understanding Payroll Deductions: SSS, PhilHealth, Pag-IBIG, and Withholding Tax
Knowunity Philippines
@knowunityphilippines
1 / 10
Understanding Philippine Payroll Deductions
Think of payroll deductions as your financial safety net - they might reduce your take-home pay now, but they're building your future security. Every Filipino employee has four mandatory deductions that employers must withhold from their salary.
The big four deductions are SSS (your retirement and disability coverage), PhilHealth (medical insurance), Pag-IBIG (housing fund), and withholding tax (income tax). These aren't optional - they're required by law and protect you in different ways.
Here's the simple formula you need to remember: Net Salary = Gross Salary - SSS - PhilHealth - Pag-IBIG - Withholding Tax. Your gross salary is what you earn before deductions, and your net salary is what actually hits your bank account.
Quick Tip: Keep your pay slips to track these deductions - they're proof of your contributions and essential for claiming benefits later!
SSS Contributions Made Simple
SSS contributions work differently than you might expect - they don't use your exact salary but instead use something called a salary credit system. Your actual salary gets matched to a bracket, and that bracket determines your contribution.
For 2024, you'll pay 4.5% of your salary credit while your employer covers 9.5% . The minimum salary credit is ₱4,000 and the maximum is ₱30,000, so even if you earn ₱50,000, you'll only pay SSS on ₱30,000.
Here's a real example: if you earn ₱15,000 monthly, you'll pay ₱15,000 × 4.5% = ₱675 for SSS. Your employer adds ₱1,425, making the total contribution ₱2,100 that goes toward your future retirement and benefits.
Remember: Higher contributions mean higher benefits later - SSS uses these same salary credits to calculate your retirement pension!
PhilHealth Premium Calculations
PhilHealth premiums are refreshingly straightforward compared to SSS - it's a flat 2.5% of your monthly salary (with your employer matching another 2.5%). But there's a catch: they set minimum and maximum limits on what salary they'll consider.
If you earn less than ₱10,000, PhilHealth treats it as ₱10,000 for calculation purposes. If you earn more than ₱100,000, they cap it at ₱100,000. So someone earning ₱8,000 pays ₱250 monthly, while someone earning ₱25,000 pays ₱625.
The maximum you'll ever pay for PhilHealth is ₱2,500 per month (2.5% of ₱100,000). This system ensures everyone gets basic health coverage while preventing premiums from becoming unaffordable for high earners.
Health Hack: PhilHealth covers you and your dependents, so those premiums protect your whole family's medical needs!
Pag-IBIG Fund Contributions
Pag-IBIG contributions have the simplest rules of all - most employees just pay 2% of their monthly salary up to a maximum of ₱200. Your employer matches this with their own 2% contribution, also capped at ₱200.
There's one exception: if you earn ₱1,500 or less monthly, you only pay 1% while your employer still pays 2%. Since the maximum contribution is ₱200, this means Pag-IBIG only considers salaries up to ₱10,000 for calculation purposes.
Here's the math: someone earning ₱8,000 pays ₱160 monthly, but someone earning ₱15,000 still only pays the maximum ₱200. These contributions build up in your account and can be used for housing loans or withdrawn as savings.
Money Tip: Pag-IBIG contributions are tax-deductible, so they actually reduce your taxable income and lower your withholding tax!
Withholding Tax Calculations
Withholding tax is where things get interesting - it's calculated on your income after all other deductions are removed. First, subtract your SSS, PhilHealth, and Pag-IBIG contributions from your gross salary to get your taxable income.
The Philippines uses a progressive tax system, meaning higher earners pay higher rates. The first ₱20,833 monthly is tax-free, then rates climb from 20% to 35% as income increases. Most entry-level workers fall in the 0% or 20% brackets.
Here's the 2024 breakdown: ₱0-20,833 (0% tax), ₱20,834-33,333 (20% on excess), ₱33,334-66,667 (₱2,500 plus 25% on excess), and it continues upward. The good news? Your mandatory contributions reduce this taxable amount.
Tax Victory: Remember that your SSS, PhilHealth, and Pag-IBIG contributions all reduce your taxable income - they're working double duty for your financial benefit!
We thought you’d never ask...
What is the Knowunity AI companion?
Our AI companion is specifically built for the needs of students. Based on the millions of content pieces we have on the platform we can provide truly meaningful and relevant answers to students. But its not only about answers, the companion is even more about guiding students through their daily learning challenges, with personalised study plans, quizzes or content pieces in the chat and 100% personalisation based on the students skills and developments.
Where can I download the Knowunity app?
You can download the app in the Google Play Store and in the Apple App Store.
Is Knowunity really free of charge?
That's right! Enjoy free access to study content, connect with fellow students, and get instant help – all at your fingertips.
Most popular content in Business Math
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The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
I think it’s very much worth it and you’ll end up using it a lot once you get the hang of it and even after looking at others notes you can still ask your Artificial intelligence buddy the question and ask to simplify it if you still don’t get it!!! In the end I think it’s worth it 😊👍 ⚠️Also DID I MENTION ITS FREEE YOU DON’T HAVE TO PAY FOR ANYTHING AND STILL GET YOUR GRADES IN PERFECTLY❗️❗️⚠️
Thomas R
iOS user
Knowunity is the BEST app I’ve used in a minute. This is not an ai review or anything this is genuinely coming from a 7th grade student (I know 2011 im young) but dude this app is a 10/10 i have maintained a 3.8 gpa and have plenty of time for gaming. I love it and my mom is just happy I got good grades
Brad T
Android user
Not only did it help me find the answer but it also showed me alternative ways to solve it. I was horrible in math and science but now I have an a in both subjects. Thanks for the help🤍🤍
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
I found this app a couple years ago and it has only gotten better since then. I really love it because it can help with written questions and photo questions. Also, it can find study guides that other people have made as well as flashcard sets and practice tests. The free version is also amazing for students who might not be able to afford it. Would 100% recommend
Aubrey
iOS user
Best app if you're in Highschool or Junior high. I have been using this app for 2 school years and it's the best, it's good if you don't have anyone to help you with school work.😋🩷🎀
Marco B
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This app is phenomenal down to the correct info and the various topics you can study! I greatly recommend it for people who struggle with procrastination and those who need homework help. It has been perfectly accurate for world 1 history as far as I’ve seen! Geometry too!
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
I think it’s very much worth it and you’ll end up using it a lot once you get the hang of it and even after looking at others notes you can still ask your Artificial intelligence buddy the question and ask to simplify it if you still don’t get it!!! In the end I think it’s worth it 😊👍 ⚠️Also DID I MENTION ITS FREEE YOU DON’T HAVE TO PAY FOR ANYTHING AND STILL GET YOUR GRADES IN PERFECTLY❗️❗️⚠️
Thomas R
iOS user
Knowunity is the BEST app I’ve used in a minute. This is not an ai review or anything this is genuinely coming from a 7th grade student (I know 2011 im young) but dude this app is a 10/10 i have maintained a 3.8 gpa and have plenty of time for gaming. I love it and my mom is just happy I got good grades
Brad T
Android user
Not only did it help me find the answer but it also showed me alternative ways to solve it. I was horrible in math and science but now I have an a in both subjects. Thanks for the help🤍🤍
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
I found this app a couple years ago and it has only gotten better since then. I really love it because it can help with written questions and photo questions. Also, it can find study guides that other people have made as well as flashcard sets and practice tests. The free version is also amazing for students who might not be able to afford it. Would 100% recommend
Aubrey
iOS user
Best app if you're in Highschool or Junior high. I have been using this app for 2 school years and it's the best, it's good if you don't have anyone to help you with school work.😋🩷🎀
Marco B
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This app is phenomenal down to the correct info and the various topics you can study! I greatly recommend it for people who struggle with procrastination and those who need homework help. It has been perfectly accurate for world 1 history as far as I’ve seen! Geometry too!
Paul T
iOS user
Understanding Payroll Deductions: SSS, PhilHealth, Pag-IBIG, and Withholding Tax
Knowunity Philippines
@knowunityphilippines
Ever wondered where chunks of your paycheck disappear to each month? Understanding payroll deductionsis crucial for every Filipino worker - these mandatory contributions fund your social security, health insurance, housing benefits, and taxes. Let's break down how SSS, PhilHealth,... Show more
Understanding Philippine Payroll Deductions
Think of payroll deductions as your financial safety net - they might reduce your take-home pay now, but they're building your future security. Every Filipino employee has four mandatory deductions that employers must withhold from their salary.
The big four deductions are SSS (your retirement and disability coverage), PhilHealth (medical insurance), Pag-IBIG (housing fund), and withholding tax (income tax). These aren't optional - they're required by law and protect you in different ways.
Here's the simple formula you need to remember: Net Salary = Gross Salary - SSS - PhilHealth - Pag-IBIG - Withholding Tax. Your gross salary is what you earn before deductions, and your net salary is what actually hits your bank account.
Quick Tip: Keep your pay slips to track these deductions - they're proof of your contributions and essential for claiming benefits later!
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
SSS Contributions Made Simple
SSS contributions work differently than you might expect - they don't use your exact salary but instead use something called a salary credit system. Your actual salary gets matched to a bracket, and that bracket determines your contribution.
For 2024, you'll pay 4.5% of your salary credit while your employer covers 9.5% . The minimum salary credit is ₱4,000 and the maximum is ₱30,000, so even if you earn ₱50,000, you'll only pay SSS on ₱30,000.
Here's a real example: if you earn ₱15,000 monthly, you'll pay ₱15,000 × 4.5% = ₱675 for SSS. Your employer adds ₱1,425, making the total contribution ₱2,100 that goes toward your future retirement and benefits.
Remember: Higher contributions mean higher benefits later - SSS uses these same salary credits to calculate your retirement pension!
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
PhilHealth Premium Calculations
PhilHealth premiums are refreshingly straightforward compared to SSS - it's a flat 2.5% of your monthly salary (with your employer matching another 2.5%). But there's a catch: they set minimum and maximum limits on what salary they'll consider.
If you earn less than ₱10,000, PhilHealth treats it as ₱10,000 for calculation purposes. If you earn more than ₱100,000, they cap it at ₱100,000. So someone earning ₱8,000 pays ₱250 monthly, while someone earning ₱25,000 pays ₱625.
The maximum you'll ever pay for PhilHealth is ₱2,500 per month (2.5% of ₱100,000). This system ensures everyone gets basic health coverage while preventing premiums from becoming unaffordable for high earners.
Health Hack: PhilHealth covers you and your dependents, so those premiums protect your whole family's medical needs!
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Pag-IBIG Fund Contributions
Pag-IBIG contributions have the simplest rules of all - most employees just pay 2% of their monthly salary up to a maximum of ₱200. Your employer matches this with their own 2% contribution, also capped at ₱200.
There's one exception: if you earn ₱1,500 or less monthly, you only pay 1% while your employer still pays 2%. Since the maximum contribution is ₱200, this means Pag-IBIG only considers salaries up to ₱10,000 for calculation purposes.
Here's the math: someone earning ₱8,000 pays ₱160 monthly, but someone earning ₱15,000 still only pays the maximum ₱200. These contributions build up in your account and can be used for housing loans or withdrawn as savings.
Money Tip: Pag-IBIG contributions are tax-deductible, so they actually reduce your taxable income and lower your withholding tax!
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Withholding Tax Calculations
Withholding tax is where things get interesting - it's calculated on your income after all other deductions are removed. First, subtract your SSS, PhilHealth, and Pag-IBIG contributions from your gross salary to get your taxable income.
The Philippines uses a progressive tax system, meaning higher earners pay higher rates. The first ₱20,833 monthly is tax-free, then rates climb from 20% to 35% as income increases. Most entry-level workers fall in the 0% or 20% brackets.
Here's the 2024 breakdown: ₱0-20,833 (0% tax), ₱20,834-33,333 (20% on excess), ₱33,334-66,667 (₱2,500 plus 25% on excess), and it continues upward. The good news? Your mandatory contributions reduce this taxable amount.
Tax Victory: Remember that your SSS, PhilHealth, and Pag-IBIG contributions all reduce your taxable income - they're working double duty for your financial benefit!
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
We thought you’d never ask...
What is the Knowunity AI companion?
Our AI companion is specifically built for the needs of students. Based on the millions of content pieces we have on the platform we can provide truly meaningful and relevant answers to students. But its not only about answers, the companion is even more about guiding students through their daily learning challenges, with personalised study plans, quizzes or content pieces in the chat and 100% personalisation based on the students skills and developments.
Where can I download the Knowunity app?
You can download the app in the Google Play Store and in the Apple App Store.
Is Knowunity really free of charge?
That's right! Enjoy free access to study content, connect with fellow students, and get instant help – all at your fingertips.
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Students love us — and so will you.
4.9/5
App Store
4.8/5
Google Play
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
I think it’s very much worth it and you’ll end up using it a lot once you get the hang of it and even after looking at others notes you can still ask your Artificial intelligence buddy the question and ask to simplify it if you still don’t get it!!! In the end I think it’s worth it 😊👍 ⚠️Also DID I MENTION ITS FREEE YOU DON’T HAVE TO PAY FOR ANYTHING AND STILL GET YOUR GRADES IN PERFECTLY❗️❗️⚠️
Thomas R
iOS user
Knowunity is the BEST app I’ve used in a minute. This is not an ai review or anything this is genuinely coming from a 7th grade student (I know 2011 im young) but dude this app is a 10/10 i have maintained a 3.8 gpa and have plenty of time for gaming. I love it and my mom is just happy I got good grades
Brad T
Android user
Not only did it help me find the answer but it also showed me alternative ways to solve it. I was horrible in math and science but now I have an a in both subjects. Thanks for the help🤍🤍
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
I found this app a couple years ago and it has only gotten better since then. I really love it because it can help with written questions and photo questions. Also, it can find study guides that other people have made as well as flashcard sets and practice tests. The free version is also amazing for students who might not be able to afford it. Would 100% recommend
Aubrey
iOS user
Best app if you're in Highschool or Junior high. I have been using this app for 2 school years and it's the best, it's good if you don't have anyone to help you with school work.😋🩷🎀
Marco B
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This app is phenomenal down to the correct info and the various topics you can study! I greatly recommend it for people who struggle with procrastination and those who need homework help. It has been perfectly accurate for world 1 history as far as I’ve seen! Geometry too!
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
I think it’s very much worth it and you’ll end up using it a lot once you get the hang of it and even after looking at others notes you can still ask your Artificial intelligence buddy the question and ask to simplify it if you still don’t get it!!! In the end I think it’s worth it 😊👍 ⚠️Also DID I MENTION ITS FREEE YOU DON’T HAVE TO PAY FOR ANYTHING AND STILL GET YOUR GRADES IN PERFECTLY❗️❗️⚠️
Thomas R
iOS user
Knowunity is the BEST app I’ve used in a minute. This is not an ai review or anything this is genuinely coming from a 7th grade student (I know 2011 im young) but dude this app is a 10/10 i have maintained a 3.8 gpa and have plenty of time for gaming. I love it and my mom is just happy I got good grades
Brad T
Android user
Not only did it help me find the answer but it also showed me alternative ways to solve it. I was horrible in math and science but now I have an a in both subjects. Thanks for the help🤍🤍
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
I found this app a couple years ago and it has only gotten better since then. I really love it because it can help with written questions and photo questions. Also, it can find study guides that other people have made as well as flashcard sets and practice tests. The free version is also amazing for students who might not be able to afford it. Would 100% recommend
Aubrey
iOS user
Best app if you're in Highschool or Junior high. I have been using this app for 2 school years and it's the best, it's good if you don't have anyone to help you with school work.😋🩷🎀
Marco B
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This app is phenomenal down to the correct info and the various topics you can study! I greatly recommend it for people who struggle with procrastination and those who need homework help. It has been perfectly accurate for world 1 history as far as I’ve seen! Geometry too!
Paul T
iOS user