--- title: "Philippines Tax Table 2026 | BIR Withholding Rates" description: "The 2026 Philippines BIR withholding tax table: monthly and semi-monthly brackets, 0% up to PHP 20,833, rising to 35% above PHP 666,667. Verified against RR No. 11-2018." canonical: https://www.teamed.global/country-hiring-guides/philippines/tax-and-payroll --- Philippines · Tax & payroll child Served by Teamed's own legal entity in the Philippines # How does *Philippines payroll tax* work in 2026? Every Philippines employer runs three separate contribution stacks on each payslip: SSS at 10%, PhilHealth at 2.5%, and Pag-IBIG at 2%. That combined employer burden sits on top of mandatory 13th month pay and a semi-monthly payroll cycle. The 2026 BIR withholding tax table, monthly and semi-monthly brackets, is set out below. Last reviewed 22 September 2026 · Philippines guide ![Manila Bay at dusk with modern financial district towers lit against a warm sky.](/images/country-guides/philippines-tax-payroll.webp) Illustration · Manila, Philippines Answer.cite this The 2026 BIR withholding tax table is unchanged from the one effective 1 January 2023. On a monthly payroll, no tax applies up to PHP 20,833; above that, six bands rise to 35% on income over PHP 666,667. The full table, monthly and semi-monthly, is set out immediately below. Philippines employer payroll cost also carries three mandatory contribution stacks. You pay SSS at 10%, PhilHealth at 2.5%, and Pag-IBIG at 2% on top of gross salary. The employee pays SSS at 5%, PhilHealth at 2.5%, and Pag-IBIG at 2%. SSS contributions apply up to a maximum monthly salary credit of PHP 35,000/month. Employers must also pay one month of 13th month pay each year. Payroll runs semi-monthly and withholding tax is filed monthly with the BIR. ## 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](https://bir-cdn.bir.gov.ph/local/pdf/Annex%20E%20RR%2011-2018.pdf), checked 22 September 2026. ![A busy street market in Makati City with colourful stalls and office workers passing by.](/images/country-guides/philippines-tax-payroll-polaroid-1.webp) Makati at midday ## 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 and Pag-IBIG rates apply to the full basic salary. | 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 | | Pag-IBIG / HDMF (housing fund) | 2% | Monthly salary above PHP 1,500 | ### 13th month pay Every employer in the Philippines must pay a mandatory 13th month bonus equal to **one month of basic salary** per year of service. This is required by Presidential Decree No. 851 and is not discretionary. It must be paid on or before 24 December each year. Employees who have worked at least one month in a calendar year are entitled to a pro-rated amount. 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 Contested Wage Order No. NCR-27 would raise the National Capital Region floor to PHP 755, but a Pasig Regional Trial Court injunction has suspended it since 13 August 2026 while DOLE contests the order. The enforceable NCR minimum wage today is still **PHP 695** under Wage Order No. NCR-26. | Region | Daily minimum (non-agriculture) | Effective from | Status | | --- | --- | --- | --- | | NCR (Wage Order NCR-26) | PHP 695 | In force | In force | | NCR (Wage Order NCR-27) | PHP 755 | 25 Jul 2026 | Under court injunction since 13 Aug 2026 | Minimum wage rates differ by region and are set by Regional Tripartite Wages and Productivity Boards; the NCR-27 dispute does not affect wage orders 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 | | Pag-IBIG / HDMF (housing fund) | 2% | Monthly salary above PHP 1,500 | 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. ## Philippines TRAIN Law income tax bands for 2026 Income tax in the Philippines follows six bands under the TRAIN Law. Annual income up to PHP 250,000 is tax-free. The top rate is 35% on income above PHP 8,000,000. The TRAIN brackets have not changed since January 2023. All six rates and thresholds below are in effect for 2026. | Annual income band | Rate | | --- | --- | | Up to PHP 250,000 (zero-rate band) | 0% | | PHP 250,001 to PHP 400,000 | 15% of excess over PHP 250,000 | | PHP 400,001 to PHP 800,000 | 20% of excess over PHP 400,000 | | PHP 800,001 to PHP 2,000,000 | 25% of excess over PHP 800,000 | | PHP 2,000,001 to PHP 8,000,000 | 30% of excess over PHP 2,000,000 | | Above PHP 8,000,001 | 35% of excess over PHP 8,000,000 | ### 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. At year-end the employer issues BIR Form 2316 to each employee, listing total compensation and total tax withheld for the calendar year. Employees whose only income is from their employer are considered substitution-filed and do not need to file a separate income tax return. ### 13th month pay tax treatment The 13th month bonus is exempt from income tax up to a combined ceiling for 13th month and other bonuses. This ceiling was reported in secondary sources at PHP 90,000 but has not been confirmed from a BIR primary circular in this research run. Treat this ceiling as indicative and verify with BIR Revenue Regulations before withholding decisions. The exemption is provided by law and 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 by the 15th of the month following the pay period. Payroll itself runs semi-monthly. Wages must be paid at least twice a month, at intervals not exceeding 16 days, under the Labor Code. BIR · Monthly Withholding Tax Filing 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. Source: [Emerhub: Payroll in the Philippines](https://emerhub.com/philippines/payroll-in-the-philippines/) The main payroll filing obligations employers manage: - **BIR Form 1601-C**, monthly withholding tax on compensation, filed and paid by the 15th (eFPS) or 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. 1. 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. 2. 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. 3. 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. 4. 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. 5. File BIR Form 1601-C Submit the monthly withholding tax return by the filing deadline. eFPS filers submit by the 15th; manual filers by the 10th of the following month. 6. 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 the monthly salary for salaries above PHP 1,500. 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](/employer-of-record) in the Philippines [**from $599 per employee per month**](/pricing), 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](https://www.teamed.global/tools/employer-cost) 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)](https://www.sss.gov.ph/), [PhilHealth](https://www.philhealth.gov.ph/), [Pag-IBIG Fund (HDMF)](https://www.pagibigfund.gov.ph/), and [TRAIN Law (RA 10963)](https://lawphil.net/statutes/repacts/ra2017/ra_10963_2017.html). ## 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 the monthly basic salary. Pag-IBIG is 2% of the monthly salary for salaries above PHP 1,500. Employers must also pay one month of basic salary as 13th month pay by 24 December each year. 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. Pag-IBIG is 2% for salaries above PHP 1,500. 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 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 by the 15th of the following month for eFPS filers, or the 10th for manual filers. Wages are paid at least twice a month under the Labor Code semi-monthly rule. 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. Teamed Legal Operations 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. A note from Tom Price-Daniel 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. Tom Price-Daniel · Co-founder, Teamed ## Related Philippines guides - Hiring in the Philippines, overviewparent - [Philippines termination and severance](/country-hiring-guides/philippines/termination-and-severance)sibling - [How the Employer of Record model works](/insights/eor)core - [Pricing, Zero FX Fixed](/pricing)core - [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost)tool - [Talk to an expert about hiring in the Philippines](https://www.teamed.global/contact)CTA A note on this page. This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the Bureau of Internal Revenue (BIR), Social Security System (SSS), PhilHealth, and Pag-IBIG Fund before relying on any specific framework. SSS contribution schedules are updated periodically under Republic Act No. 11199. TRAIN Law income tax brackets have been in effect since January 2023 and are unchanged for 2026. Minimum wage rates differ by region and are set by Regional Tripartite Wages and Productivity Boards; NCR rates apply only within the National Capital Region.