How to Compute Your SSS, Pag-ibig, PhilHealth, and BIR WT Contributions (2019)

I’m the go-to person of my friends and colleagues in work when they’re trying to compute these deductions. So if you are looking on how to compute SSS contribution, Pag-ibig, PhilHealth, and BIR withholding tax, then I think you came to the right place. You’ll be dealing with numbers but don’t worry because I made sure that you can easily follow the steps.

New SSS Contribution Table 2019

This post is updated due to the changes in SSS contribution in view of the recently approved “Social Security Act of 2018”. As a result, the table below shows the new SSS contribution for an employed, self-employed, voluntary member, non-working spouse, kasambahay, and OFW member.

READ: New SSS Contribution Schedule 2019 | Bigger and Better Benefits

Credits go to SSS official website, www.sss.gov.ph

Definition of Terms

• Range of Compensation – is the lower and upper bound of your Monthly Salary Credit
• Monthly Salary Credit (MSC) – is used by SSS to calculate the employee’s benefits and is just right beside the range of compensation.
• Employee Contribution (EE) – is the amount of contribution shouldered by the employee.
• Employer Contribution (ER) – is the amount of contribution shouldered by the employer.
• Self-employed (SE), Voluntary Member (VM), and OFW

How to Compute Your Monthly SSS Contribution

The SSS contribution is the amount paid by the member in exchange for government-initiated social benefits. This is computed at 12% of your average monthly salary credit (MSC) but not exceeding Php 20,000. The employee’s share is 4%, while the employer pays the remaining 8%.

Here is how to compute SSS contribution:

1. Use the Right SSS Contribution Table

SSS provided several tables to use, depending on which category you fall into. So remember to always use the employee’s table if you are an employee, self-employed if you are doing business, non-working spouse if you are dependent on your spouse’s income, and so on.

2. Get your MSC

Look at the right table and search which bracket falls under the range of compensation your salary fits in. For example, if you are earning Php 20,00month, month then your salary is in the last bracket which is Php 19,750 and above. The corresponding MSC for the range of compensation is Php 20,000.

3. Look at the Employees Share

Using the MSC you found in step 2, the resulting employee (EE) share is Php 800. You can also manually compute this by multiplying your MSC with 4%.

So for example, if you are an employee earning Php 30,000 per month, your SSS contribution will be Php 800, while your employer share is at Php 1,630. Recall that the maximum MSC is pegged at PHP 20,000 only.

How to Compute Pag-ibig Contribution

Home and Development Mutual Fund (HDMF), otherwise known as Pag-ibig, is a mandatory benefit given to employees. With the goal of providing both savings and shelter to every Filipino. Contributing member like you may get the savings, total contribution and accumulated dividends when you reach any of the following:

• after 20 years of contribution
• at retirement
• when no longer able to work because of injury, illness, and/or insanity
• decided to migrate to another country

Also, note that the maximum compensation used to compute the contribution for this benefit is being shared by the employee and the employer is pegged at Php 5,000 only.

Here is the Pag-ibig contribution table 2019:

So if you are earning Php 30,000 per month, then your Pag-ibig contribution will be Php 100. Your salary is already above Php 1,500 so your contribution will be computed using 2% of Php 5,000 or simply Php 100.

How to Compute PhilHealth Contribution

PhilHealth, or the Philippine Health Insurance Corporation, has increased its premium contribution for the purpose of sustaining the growing need of Filipinos for medical care. The change in contribution has started last January 2018 and increased to 2.75% from 2.5% of the member’s basic monthly salary.

Here is the PhilHealth contribution table 2019:

The table was derived from the simple formula of multiplying your monthly salary by 2.75% and dividing it by 2. This is done because the contribution is equally shared by the employer and employee, with a maximum monthly salary of Php 40,000.

If you are earning Php 30,000 per month, then your contribution is simply computed using the formula above (monthly salary * 0.0275/2). In short, you just need to insert your monthly salary to the formula, that will result to (Php30,000 * 0.0275/2) = Php 412.

How to Compute BIR Withholding Tax (2019)

BIR Withholding Tax Table 2018

Presently, the update in tax system, commonly called as the TRAIN law, has increased the threshold for non-taxable income up to Php 20, 833. This means that if you are earning less than Php 20,833, then you’re not subject for withholding tax.

Here is how you can compute for your BIR withholding tax:

1. Identify how frequent you receive your salary

Are you receiving your income weekly, semi-monthly, or monthly? Knowing this can help you recognize which bracket to use.

2. Compute for your net income

Withholding tax is computed using the net income. Remove first all the deductions like SSS, Pag-ibig, and PhilHealth from your gross income and look for the appropriate bracket.

3. Compute for the BIR withholding tax

Once you figure out which bracket to use, you may now subtract the Compensation Level (CL). The resulting amount must then be multiplied to the corresponding withholding tax rate. And then add the minimum prescribed withholding tax under your bracket to get your withholding tax for that period.

As an example, if you are an employee earning Php 30,000 per month, your withholding tax can be computed using the table above. First, you must identify the tax bracket where your salary falls after deducting SSS, Pag-ibig, and PhilHealth contribution. The resulting amount is Php 28,688, which falls on the second bracket. Your withholding tax should be Php 1,571 or 20% of Php 28,688, after being reduced by Php 20,833.

Computation of the Total Monthly Contribution

After learning how to compute for each monthly deduction, you can now compute for the total deduction in your monthly salary. Using the previous example, let’s see how much you can get after the deductions.

You will get a total of Php 2,883 worth of deductions in your salary. Thus, your take-home pay is only PHP 27,117.

I hope this post helped you compute your SSS contribution, Pag-ibig, PhilHealth, and withholding tax with confidence. Always remember that knowing where your money goes is power when it comes to personal finance.

Final Thoughts:

Even having all these memberships may not be enough to give you peace of mind and financial security. So you must have a contingency plan or what we call “Plan B,” to guard your future and the people you love the most.

You may consider getting a VUL plan from Sun Life that will keep your mind free of worries while growing your money over time. You may request for a FREE proposal or financial consultation by clicking the link below.

READ: Sun Maxilink Prime | Best-Selling VUL Plan From Sun Life

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Ton Suan

Ton is an electronics engineer, financial blogger, insurance agent, and a certified investment solicitor. A multi-awarded financial advisor with clients ranging from lawyers, doctors, engineers, accountants, business owners, company directors, and OFWs to minimum wage earners had sought advice from him in achieving lifetime financial freedom.