The Hidden Salary Deductions Every Filipino Worker Should Know

You remember gross salary and start mentally budgeting: rent, bills, groceries, savings, maybe that little “deserve ko ’to” purchase. Then you check your actual take-home pay—and suddenly, kailangan mag-recalculate.

May SSS. May PhilHealth. May Pag-IBIG. May withholding tax. At depende sa situation mo, may iba pang deductions na puwedeng bawas sa paycheck mo. Understanding these deductions can help you make better decisions with your money, from budgeting your monthly expenses to planning your savings and purchases.

Here’s a closer look at the salary deductions every Filipino worker should know.

Before getting into deductions, it’s important to understand two basic terms on your payslip.

Gross salary is the total amount you earn before deductions. Kasama rito ang basic salary at iba pang taxable or non-taxable compensation, depending on your employment package. Net salary or take-home pay, meanwhile, is the actual amount you receive after all applicable deductions.

For example, kung ₱30,000 ang gross monthly salary mo, hindi ibig sabihin na ₱30,000 din ang matatanggap mo. May deductions tulad ng contributions, taxes, at iba pang applicable charges na ibabawas muna sa salary mo.

Kaya when creating a monthly budget, net salary ang mas magandang gawing basis dahil ito ang actual amount na napupunta sa iyo after deductions.

If you’re a private-sector employee covered by the Social Security System (SSS), a portion of your compensation goes toward your SSS contribution.

Ang contribution na ito ay tumutulong pondohan ang mga social security benefits na puwedeng matanggap ng eligible members, tulad ng sickness, maternity, disability, at retirement benefits, pati na rin ang iba pang benefits.

May contribution din ang employer mo sa SSS. Ang amount na kinakaltas sa salary mo ay depende sa applicable contribution schedule at compensation mo.

Ano ang ibig sabihin nito sa paycheck mo? Automatic na kinakaltas sa salary mo ang share mo sa SSS. Kaya after all payroll deductions, mas mababa ang actual na matatanggap mo kaysa sa gross salary mo. 

Another mandatory deduction that may appear on your payslip is your PhilHealth contribution.

Ang PhilHealth contribution ay ginagamit para pondohan ang national health insurance program ng bansa at makatulong na mabigyan ang members ng access sa covered healthcare benefits.

For employed members, hati ang contribution between the employee and employer, depende sa applicable rules at contribution rates. 

Kasama rin sa iyong payslip ang Pag-IBIG Fund contribution, formally known as your contribution to the Home Development Mutual Fund (HDMF).

Ang Pag-IBIG contributions ay tumutulong sa members na makapag-build ng savings habang sinusuportahan din ang iba't ibang programs tulad ng housing loans at iba pang member benefits. At tulad ng ibang mandatory contributions, may corresponding contribution din ang employer mo.

Dahil kadalasan ay relatively small ang amount na kinakaltas sa bawat sweldo, madali itong ma-overlook kapag tinitingnan mo ang iyong payroll deductions. Pero over time, naiipon din ang mga kontribusyong ito—kaya importanteng alam mo kung magkano ang kinakaltas sa iyong payslip at kung saan ito napupunta. 

Isa pa sa deductions na may noticeable impact sa iyong take-home pay ay ang withholding tax.

Ang employers ay nagkakaltas ng income tax mula sa compensation ng employees at nire-remit ito sa Bureau of Internal Revenue (BIR).

Hindi pare-pareho ang withholding tax ng bawat employee. Nakadepende ito sa taxable compensation at applicable income tax rules. Kaya kahit parehong employed ang dalawang tao, puwedeng magkaiba ang tax deductions nila kung magkaiba ang salary o taxable compensation

Importanteng tandaan: hindi arbitrary ang withholding tax. Bahagi ito ng income tax system at karaniwang kino-credit laban sa iyong annual income tax liability. 

May mga companies na nag-o-offer ng employee benefits na may corresponding employee contribution. Depende sa benefits package ng employer mo, puwedeng may deductions sa payslip mo para sa:

• HMO o healthcare plans
• Life o accident insurance
• Dependent coverage
• Company-sponsored programs
• Iba pang voluntary employee benefits

Hindi pare-pareho ang deductions sa bawat company. May employers na fully covered ang ilang benefits, habang ang iba naman ay maaaring mag-require sa employees na mag-shoulder ng part ng cost.

Kung may deduction sa payslip mo na hindi mo recognized o nauunawaan, i-check ang HR o payroll policy ng company mo para malaman kung para saan ito. 

Your salary may also be affected by unpaid absences, undertime, or unpaid leave, depending on your employment arrangement and company policies.

Hindi ito deductions tulad ng SSS or PhilHealth contributions. Instead, these may reduce the compensation you’re entitled to receive for a specific pay period. Kaya posible ring magkaiba ang expected salary mo sa actual amount na pumapasok sa payroll account mo.

If you notice a deduction or adjustment on your payslip that you don’t understand, don’t hesitate to reach out to your payroll or HR team for clarification.

Ang payslip mo ay hindi lang simpleng document na nagpapakita kung magkano ang kinita mo. Para na rin itong mini financial report para sa paycheck mo. Mula rito, i-account mo ang regular expenses, savings, existing financial commitments, at iba pang necessities. Sa ganitong paraan, mas magkakaroon ka ng malinaw na picture kung magkano talaga ang available mong pera para sa discretionary spending.