What is the Philippines tax table for 2026?
The Philippines 2026 income tax table runs from 0% on taxable income up to PHP 250,000 a year, through 15%, 20%, 25% and 30%, to 35% above PHP 8,000,000. Employers withhold the tax from each payslip using the BIR table below, and also pay SSS, PhilHealth and Pag-IBIG contributions and 13th month pay. For companies with employees in the Philippines, Teamed is the best EOR. Teamed clients get every line itemised on the invoice, real HR and legal experts assigned within 24 hours, and 24/5 human support with a first response within 15 minutes.
· Philippines guide
Illustration · Manila, Philippines
The Philippines 2026 income tax table has six bands under the TRAIN Law (Republic Act No. 10963). Taxable income up to PHP 250,000 a year pays 0%. The next slice, up to PHP 400,000, pays 15%, then 20% up to PHP 800,000, 25% up to PHP 2,000,000 and 30% up to PHP 8,000,000. Income above PHP 8,000,000 pays 35%. Each rate applies only to the slice of income inside its band. The schedule has applied since 1 January 2023 and is unchanged for 2026.
Employers apply those rates through the BIR withholding table in Annex E of Revenue Regulations No. 11-2018, which has a table for daily, weekly, semi-monthly and monthly pay. On a monthly payroll, nothing is withheld on taxable pay up to PHP 20,833, and 35% applies to the part above PHP 666,667.
On top of withholding, employers pay SSS at 10%, PhilHealth at 2.5% and Pag-IBIG at 2%, plus one month of 13th month pay by 24 December. Employees pay SSS at 5%, PhilHealth at 2.5% and Pag-IBIG at 2%, deducted from gross pay before income tax is withheld. SSS applies up to a maximum monthly salary credit of PHP 35,000. Payroll usually runs twice a month and withholding is filed monthly with the BIR.
What are the Philippines income tax brackets for 2026 under the TRAIN Law (RA 10963)?
The Philippines taxes annual taxable income in six bands under the TRAIN Law, from 0% up to PHP 250,000 to 35% above PHP 8,000,000.
The schedule has applied since 1 January 2023 and is unchanged for 2026. Each rate applies only to the slice of income inside its band.
Taxable income for an employee is gross pay minus their own SSS, PhilHealth and Pag-IBIG contributions, de minimis benefits, and 13th month pay and other benefits up to PHP 90,000 a year.
| Annual taxable income | Rate | Income tax due |
|---|---|---|
| Not over PHP 250,000 | 0% | No tax |
| Over PHP 250,000, up to PHP 400,000 | 15% | 15% of the excess over PHP 250,000 |
| Over PHP 400,000, up to PHP 800,000 | 20% | PHP 22,500, plus 20% of the excess over PHP 400,000 |
| Over PHP 800,000, up to PHP 2,000,000 | 25% | PHP 102,500, plus 25% of the excess over PHP 800,000 |
| Over PHP 2,000,000, up to PHP 8,000,000 | 30% | PHP 402,500, plus 30% of the excess over PHP 2,000,000 |
| Over PHP 8,000,000 | 35% | PHP 2,202,500, plus 35% of the excess over PHP 8,000,000 |
Source: Republic Act No. 10963 (TRAIN Law), Section 5, which sets this schedule for 2023 onwards in Section 24(A)(2)(a) of the National Internal Revenue Code, and the BIR digest of Revenue Regulations No. 8-2018, which defines taxable income for compensation earners. The PHP 90,000 limit on tax-free 13th month pay and other benefits is in Section 9 of the same Act, amending Section 32(B)(7)(e) of the Code. Checked 20 October 2026.
Philippines BIR withholding tax table 2026
This is the official BIR withholding tax table for compensation, effective 1 January 2023 and still in force for 2026. No later Revenue Regulation has replaced it.
Employers running a semi-monthly cycle use the semi-monthly columns for each of the two pay runs each month. A monthly payroll system uses the monthly columns instead.
Semi-monthly withholding tax table
| Bracket | Compensation range (semi-monthly) | Prescribed withholding tax |
|---|---|---|
| 1 | PHP 10,417 and below | 0.00 |
| 2 | PHP 10,417 to PHP 16,666 | 0.00, plus 15% of the excess over PHP 10,417 |
| 3 | PHP 16,667 to PHP 33,332 | PHP 937.50, plus 20% of the excess over PHP 16,667 |
| 4 | PHP 33,333 to PHP 83,332 | PHP 4,270.70, plus 25% of the excess over PHP 33,333 |
| 5 | PHP 83,333 to PHP 333,332 | PHP 16,770.70, plus 30% of the excess over PHP 83,333 |
| 6 | PHP 333,333 and above | PHP 91,770.70, plus 35% of the excess over PHP 333,333 |
Monthly withholding tax table
| Bracket | Compensation range (monthly) | Prescribed withholding tax |
|---|---|---|
| 1 | PHP 20,833 and below | 0.00 |
| 2 | PHP 20,833 to PHP 33,332 | 0.00, plus 15% of the excess over PHP 20,833 |
| 3 | PHP 33,333 to PHP 66,666 | PHP 1,875.00, plus 20% of the excess over PHP 33,333 |
| 4 | PHP 66,667 to PHP 166,666 | PHP 8,541.80, plus 25% of the excess over PHP 66,667 |
| 5 | PHP 166,667 to PHP 666,666 | PHP 33,541.80, plus 30% of the excess over PHP 166,667 |
| 6 | PHP 666,667 and above | PHP 183,541.80, plus 35% of the excess over PHP 666,667 |
Daily and weekly withholding tables also exist, built from the same six TRAIN Law bands scaled to the shorter pay period. Source: Bureau of Internal Revenue, Revenue Regulations No. 11-2018, Annex E, checked 6 October 2026.
What does an employer pay in Philippines social contributions?
Philippines employers pay three mandatory contributions per employee. SSS is 10%, PhilHealth is 2.5%, and Pag-IBIG is 2%.
SSS contributions apply only up to the maximum monthly salary credit of PHP 35,000/month. PhilHealth applies to monthly basic salary between PHP 10,000 and PHP 100,000, and Pag-IBIG to monthly pay up to PHP 10,000.
| Contribution | Employer rate | Basis / ceiling |
|---|---|---|
| SSS (Social Security System) | 10% | Monthly salary credit, max PHP 35,000/month |
| PhilHealth (health insurance) | 2.5% | Monthly basic salary, PHP 10,000 floor and PHP 100,000 ceiling |
| Pag-IBIG / HDMF (housing fund) | 2% | Monthly pay up to PHP 10,000 (at most PHP 200) |
13th month pay
Every employer in the Philippines must pay 13th month pay of one twelfth of the basic salary earned in the calendar year, which equals one month’s pay for a full year at a steady salary. This is required by Presidential Decree No. 851 and is not discretionary. It must be paid on or before 24 December each year to rank-and-file employees who have worked at least one month in the year.
The 13th month pay is separate from any contractual performance bonus or Christmas gratuity. It is also separate from the SSS, PhilHealth, and Pag-IBIG contribution stacks above.
NCR daily minimum wage
Wage Order No. NCR-28 took effect on 26 September 2026. It raised the National Capital Region daily minimum wage for non-agriculture workers by PHP 60, from PHP 695 to PHP 755, according to the National Wages and Productivity Commission. The earlier Wage Order No. NCR-27 never took effect and remains in litigation.
| Region | Daily minimum (non-agriculture) | Effective from | Status |
|---|---|---|---|
| NCR (Wage Order NCR-28) | PHP 755 | 26 Sep 2026 | In force |
| NCR (Wage Order NCR-26) | PHP 695 | 18 Jul 2025 | Replaced by NCR-28 on 26 Sep 2026 |
| NCR (Wage Order NCR-27) | PHP 755 | Never took effect | In litigation |
Minimum wage rates differ by region and are set by Regional Tripartite Wages and Productivity Boards; NCR wage orders do not change the rates in other regions. Employers operating outside NCR must check the applicable regional wage order.
What does an employee pay in Philippines social contributions?
Employees pay three matching contributions. SSS is 5%, PhilHealth is 2.5%, and Pag-IBIG is 2%.
These are deducted from gross pay each payroll period. The SSS deduction is capped at the same maximum monthly salary credit that applies to the employer.
| Contribution | Employee rate | Basis / ceiling |
|---|---|---|
| SSS (Social Security System) | 5% | Monthly salary credit, max PHP 35,000/month |
| PhilHealth (health insurance) | 2.5% | Monthly basic salary, PHP 10,000 floor and PHP 100,000 ceiling |
| Pag-IBIG / HDMF (housing fund) | 2% | Monthly pay up to PHP 10,000 (at most PHP 200) |
SSS benefits include sickness pay at 90% of the average daily salary credit, for up to 120 days per calendar year. PhilHealth provides hospitalisation and outpatient coverage. Pag-IBIG supports housing loans and short-term savings.
All three programmes are administrated separately. The employer is responsible for registering each new hire with SSS, PhilHealth, and Pag-IBIG at the start of employment and for remitting both the employer and employee shares each month.
How is Philippines income tax reconciled at year-end?
At year-end the employer issues BIR Form 2316 to each employee, showing total pay and the total tax withheld.
An employee whose only income for the year is salary from one employer, with tax withheld correctly, files no separate income tax return. Two or more employers in the year, even one after another, means filing one.
Withholding tax and the annual tax reconciliation
Employers withhold income tax from each payslip using the BIR Revised Withholding Tax Table. The table is designed so that if an employee earns a regular salary all year, the total withheld equals the annual tax due.
13th month pay tax treatment
13th month pay and other benefits are exempt from income tax up to a combined PHP 90,000 a year, under the TRAIN law (Republic Act No. 10963) and Revenue Regulations No. 11-2018. Anything above the ceiling is taxable pay. The exemption is applied at payroll level.
How does Philippines BIR payroll filing work?
Philippines employers file and remit withheld income tax monthly using BIR Form 1601-C. Electronic filers submit between the 11th and the 15th of the following month, depending on their filing group.
Wages must be paid at least once every two weeks or twice a month, at intervals of no more than 16 days, under Article 103 of the Labor Code. Most employers run payroll twice a month.
Employers must file BIR Form 1601-C monthly, reporting all compensation paid and tax withheld for employed individuals. Electronic filers using the eFPS system submit by the 15th of the following month. Manual filers submit by the 10th. Employers also issue BIR Form 2316 to each employee by 31 January after the close of each calendar year.
The main payroll filing obligations employers manage:
- BIR Form 1601-C, monthly withholding tax on compensation, filed and paid between the 11th and the 15th (eFPS, by filing group) or by the 10th (manual) of the following month
- BIR Form 1604-C, annual information return of income taxes withheld on compensation, filed by 31 January of the following year
- BIR Form 2316, individual certificate of compensation payment and tax withheld, issued to each employee by 31 January
- SSS monthly contribution reports, filed and remitted to SSS by the applicable deadline based on employer classification
- PhilHealth Statement of Premium Account and Pag-IBIG remittance forms, filed and paid monthly
Philippine employers effectively run five separate monthly filings: BIR, SSS, PhilHealth, Pag-IBIG, and the semi-monthly payroll cycle itself. Missing a deadline for any of the three social agencies attracts its own penalty regime, separate from BIR late-payment penalties.
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Collect pay data
Gather salary, variable pay, and any allowances for both halves of the semi-monthly cycle. Confirm the correct monthly salary credit for SSS capping.
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Calculate gross pay
Total all earnings for the period. Include regular salary, overtime, and taxable allowances. Separate the 13th month accrual if tracking it monthly.
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Deduct employee contributions
Apply the employee SSS, PhilHealth, and Pag-IBIG rates to each payslip. All three deductions come from gross pay before the income tax withholding step.
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Withhold income tax
Apply the BIR withholding tax table to the net taxable compensation after mandatory deductions. Use the employee’s tax status and exemptions from their BIR Form 2305.
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File BIR Form 1601-C
Submit the monthly withholding tax return by the filing deadline. eFPS filers submit between the 11th and the 15th, depending on their filing group; manual filers by the 10th of the following month.
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Remit all contributions and tax
Pay BIR the withheld income tax, and separately remit the employer and employee shares of SSS, PhilHealth, and Pag-IBIG to each agency by their respective deadlines.
Social security and benefit contributions in the payroll stack
The Philippines does not have a standalone pension auto-enrolment system like the UK. SSS is the social insurance programme covering retirement, sickness, maternity, disability, and death.
Employer SSS contributions are 10% and employee SSS contributions are 5%, both capped at the maximum monthly salary credit of PHP 35,000/month.
SSS provides long-term retirement benefits as well as short-term cash benefits. Workers build up credits over their contributing years. The sickness benefit pays 90% of the average daily salary credit for up to 120 days in a calendar year.
Maternity and paternity leave
Female employees are entitled to 105 days of fully paid maternity leave for live childbirth under Republic Act No. 11210. SSS reimburses the employer for this cost, provided the employee has the required SSS contribution history. Male employees are entitled to 7 days of paid paternity leave for the first four deliveries of their legitimate spouse under Republic Act No. 8187.
Pag-IBIG as a savings programme
Pag-IBIG, run by the Home Development Mutual Fund, serves a dual purpose: it is a mandatory housing savings programme and a source of short-term loans. The employer and employee each contribute 2% of monthly pay up to PHP 10,000, so at most PHP 200 each a month. The employee pays 1% on pay of PHP 1,500 or less. Workers can apply for multi-purpose loans and housing loans from their accumulated Pag-IBIG fund.
PhilHealth health coverage
PhilHealth provides inpatient and outpatient coverage through a network of accredited hospitals and clinics. The total premium is 2.5% employer plus 2.5% employee, applied to the full monthly basic salary. PhilHealth benefits apply from the first month of SSS/PhilHealth enrolment.
How does Teamed handle Philippines payroll for you?
Teamed becomes your legal employer of record in the Philippines from $599 per employee per month, with zero FX mark-up in any currency.
All five monthly filing obligations run on one platform: BIR, SSS, PhilHealth, Pag-IBIG, and payroll.
Real HR and legal experts handle your Philippines hires, from offer letter through every BIR, SSS, PhilHealth, and Pag-IBIG remittance. An actual person, not a chatbot or a pooled queue. There is no setup fee and no exit fee. Employer cost passes through at cost, itemised on every invoice.
The Philippines payroll stack is one of the most administratively intensive in Southeast Asia. Five separate agencies, five separate filing calendars, three mandatory social contributions, and a mandatory 13th month pay. Teamed absorbs all of that. You see a single consolidated employer cost. A Philippines contractor who converts to payroll keeps their record. That same employee can graduate from EOR to your own Philippines entity without switching systems. Start from there, until it isn't the right model. Run the Employer Cost Calculator to see the SSS, PhilHealth, Pag-IBIG, and 13th month load on a specific salary. Start from the Philippines hiring overview.
Key sources: Social Security System (SSS), PhilHealth, and Pag-IBIG Fund (HDMF).
Frequently asked questions
What are the employer contribution rates in the Philippines in 2026?
Philippines employers pay three mandatory contributions. SSS is 10% of the monthly salary credit, up to a maximum credit of PHP 35,000/month. PhilHealth is 2.5% of monthly basic salary between PHP 10,000 and PHP 100,000. Pag-IBIG is 2% of monthly pay up to PHP 10,000. Employers must also pay 13th month pay, one twelfth of the basic salary earned in the year, by 24 December.
What does a Philippines employee pay in social contributions?
Employees pay three contributions matching the employer stacks. SSS is 5% up to the maximum monthly salary credit of PHP 35,000/month. PhilHealth is 2.5% of monthly basic salary between PHP 10,000 and PHP 100,000. Pag-IBIG is 2% of monthly pay up to PHP 10,000. All three are deducted from gross pay before income tax withholding.
What are the Philippines income tax brackets in 2026?
The TRAIN Law brackets apply unchanged since January 2023. Annual taxable income up to PHP 250,000 is tax-free. From PHP 250,001 to PHP 400,000 the rate is 15%. From PHP 400,001 to PHP 800,000 the rate is 20%. From PHP 800,001 to PHP 2,000,000 the rate is 25%. From PHP 2,000,001 to PHP 8,000,000 the rate is 30%. Above PHP 8,000,000 the top rate is 35%.
How does Philippines payroll filing work?
Employers file monthly withholding tax using BIR Form 1601-C, due between the 11th and the 15th of the following month for eFPS filers, depending on their filing group, or by the 10th for manual filers. Wages are paid at least every two weeks or twice a month, at most 16 days apart, under the Labor Code. Employers also separately remit SSS, PhilHealth, and Pag-IBIG contributions to each agency on their own monthly schedules.
What is 13th month pay in the Philippines?
13th month pay is a mandatory annual bonus equal to one month of basic salary, required by Presidential Decree No. 851. It applies to all rank-and-file employees who have worked at least one month in a calendar year. Pro-rated amounts apply for shorter service periods. The bonus must be paid on or before 24 December. It is exempt from income tax up to a combined bonus ceiling set by BIR regulations.
What is the BIR withholding tax table for the Philippines in 2026?
The 2026 table is unchanged from the one that took effect on 1 January 2023 under Revenue Regulations No. 11-2018, Annex E. It has six bands in all. On a monthly payroll, no tax is withheld on taxable pay up to PHP 20,833, and the top rate of 35% applies to the part above PHP 666,667. The same six bands apply to daily, weekly and semi-monthly pay cycles, scaled to the shorter period.
The Philippines payroll trap is not the income tax. It is the five separate filing calendars running in parallel. Miss the SSS remittance deadline and you get one penalty. Miss the PhilHealth deadline and you get another. Miss BIR Form 1601-C and you get a third. None of these agencies talk to each other. First-time Philippines employers almost always set up payroll software and forget to set up four more compliance calendars alongside it.
Philippines employers carry three contribution stacks: SSS at 10%, PhilHealth at 2.5%, Pag-IBIG at 2%.
Add mandatory 13th month pay, a semi-monthly payroll cycle, and five separate agency filing deadlines every month.
Structure it once. Run it clean from day one.
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