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

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compute sss contribution pagibig philhealth bir taxJust like you, I’ve also been an employee for quite some time and was the go-to person of my friends/colleagues when they’re trying to compute these deductions. So are you here to know how to compute your SSS contribution, Pag-ibig, PhilHealth, and BIR withholding tax? If yes, then you came to the right place because I’m going to show you how to get these amounts in a single post. This will definitely help you to be a financially savvy employee.

Contents (Quicklinks):
1. How to Compute SSS Contribution
2. Compute HDMF or Pag-big Contribution
3. Calculate PhilHealth Monthly Contribution
4. How to Compute BIR Withholding Tax 2018 (if applicable)
5. Compute for the Total Monthly Contribution Deduction

How to Compute Your Monthly SSS Contribution

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

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

new sss contribution table for employed, self-employed, voluntary member, and non-working spousenew sss contribution table for kasambahaynew sss contribution table for OFW

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

The SSS contribution of an employee is computed at 12% of the average monthly salary credit (MSC) but not exceeding Php 20,000. The employee’s share is 4% while the employer pays the remaining 8%.

SSS Contribution Table (Definition of Terms)

  • Range of Compensation – will indicate the row on the table that you’ll be using to compute your contribution.
  • Monthly Salary Credit (MSC) – is used by SSS to calculate the employee’s benefits and 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

This is best understood thru an example so here it goes. This will appear in each section and we’ll sum it up with the total deductions an employee gets.

Can you help an employee to calculate his monthly contribution if he is receiving a monthly compensation of Php 30,000?

If you’ll look on the table, his salary falls in the range of Php 19,750 & above so his MSC is equivalent to 20,000. Once you’ve have identified the range then you can easily spot the contribution of his employer at Php 1,360. While the contribution deductible to the employee is Php 800.

Computation of HDMF or Pag-ibig Contribution

Home and Development Mutual Fund (HDMF) or otherwise known as PAG-IBIG is a mandatory benefit given to employees. With the goal to provide both savings and shelter to every Filipino. Contributing member may get the savings, total contribution plus accumulated dividends when he reached 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.

Monthly Compensation

Employee Share

Employer Share

 Php 1,500 and below  1%   2%
 Over Php 1,500  2%   2%

 

Can you help an employee to calculate his monthly contribution if he is receiving a monthly compensation of Php 30,000?

Although his salary is Php 30,00 we will only use the Php 5,000 because this is the maximum monthly compensation to use in computing the monthly contribution. Because the salary is above Php 1,500 his contribution is computed at 2% of Php 5,000 or equivalent to Php 100 only.

Computation of PhilHealth Contribution 2019

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

 Monthly Salary

 Monthly Premium

 Employee Share

 Employer Share

 Php 10,000 & below  Php 275  Php 137.5  Php 137.5
 Php 10,000.1 to Php 39,000  Php 275.02 to Php 1,099.99  Php 137.51 to Php 549.99  Php 137.51 to Php 549.99
 Php 40,000 & above  Php 1,100  Php 550  Php 550

 

The table seems so complicated, right? This is just actually 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 the maximum monthly salary of Php 40,000.

Can you help an employee to calculate his monthly contribution if he is receiving a monthly compensation of Php 30,000?

Using the formula above (monthly salary*0.0275/2) the resulting contribution is (Php30,000*0.0275/2) Php 412.

How to Compute BIR Withholding Tax (2019)

Currently, 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.

bir withholding tax 2018

BIR Withholding Tax Table 2018

Can you help an employee to calculate his monthly contribution if he is receiving a monthly compensation of Php 30,000?

First, you must identify the bracket where the salary of the employee falls and then deduct SSS, Pag-ibig, and PhilHealth contribution, from his salary. The resulting amount is Php 28,688 which falls on the second bracket. This will give a total withholding tax of Php 1,571 or 20% of Php 28,688 after being reduced by Php 20,833.

Compute for the Total Monthly Contribution Deduction

After learning how to compute for each monthly deductions you get this is the perfect time to compute for the total deduction. Using the previous example let’s see how much an employee can get monthly after these deductions.

The employee gets a total of Php 2,883 worth of deductions in his salary. His takehome pay is Php 27,117 only.

After reading this I know that you can now compute your SSS contribution, Pag-ibig, PhilHealth, and withholding tax with confidence. I hope you did enjoy my blog.

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2 comments… add one
  • Jon Link Reply

    If I give my househelp a salary increase midyear, when should we increase the contribution?

    • Federico Suan, Jr. Link Reply

      Hi Jon. If you remit it monthly then you will have to pay it the month you gave her a raise. Thanks

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