Your payslip is more than a piece of paper (or a PDF) telling you what landed in your bank account. It is a complete record of what you earned, what was deducted, and what your employer remitted to the government on your behalf. Yet most Filipino employees glance only at the net pay and file the rest away. This guide teaches you how to read every line so you can spot errors, verify your benefits, and plan your finances accurately.
👉 After reading, compute your correct take-home pay with our calculators.
The Earnings Side of Your Payslip
Basic Pay
Your fixed monthly (or daily) salary before any additions or deductions. This is the figure used to compute your 13th month pay and most benefit contributions.
Overtime Pay
Hours worked beyond 8 hours a day, paid at 125% of your hourly rate on regular days, and higher on rest days and holidays. Verify with our Overtime Pay Calculator.
Night Differential
Work between 10:00 PM and 6:00 AM earns a premium of 10% (regular days) up to 20% (holidays/rest days). Check the Night Differential Calculator.
Holiday Pay
Pay for regular holidays even without working, plus premium rates if you do work. See the Holiday Pay Calculator.
The Deductions Side of Your Payslip
SSS (Social Security System)
Mandatory retirement, disability, and maternity coverage. The employee share is a percentage of your monthly salary credit (MSC). Read the full breakdown in our SSS, PhilHealth & Pag-IBIG guide.
PhilHealth
National health insurance. The employee share is currently 2.5% of monthly salary (split with the employer), subject to a ceiling.
Pag-IBIG (HDMF)
Housing and savings fund. Employee contribution is typically ₱100–₱200/month depending on monthly compensation.
Withholding Tax (BIR)
Income tax withheld from your salary under the TRAIN Law graduated rates. If too much is withheld, you may be due a BIR tax refund.
How to Spot Errors on Your Payslip
- Check the basic pay — does it match your contract?
- Verify overtime and night differential — are the hours and rates correct?
- Compare SSS / PhilHealth / Pag-IBIG — are the contributions based on your actual salary?
- Check withholding tax — does it match the TRAIN Law table for your bracket?
- Confirm 13th month — is it being accrued and paid in December (or prorated on resignation)?
Why Understanding Your Payslip Matters for Final Pay
Every component on your payslip feeds into your final pay when you leave. Unpaid overtime, under-remitted SSS, or miscalculated leave conversion can all reduce what you receive. The clearer you are about your regular payslip, the easier it is to verify your final pay computation when the time comes.
👉 Run your numbers through the Final Pay Calculator.
Thinking About a Career Move?
If your payslip keeps showing deductions and net pay that do not add up to a living wage, it may be time to compare options. Use the Job Change Calculator to model a move, or explore workpinoy.com for remote roles that pay in USD and bypass many local deductions.