Where Does My Salary Go?

It's not just deductions — it's your safety net

Most fresh grads see salary deductions as money taken away. In reality, these deductions build your personal safety net: retirement income, health coverage, housing eligibility, and emergency loans. Think of them as forced savings managed by the government on your behalf.

Sample breakdown: P25,000 monthly salary

Here's what happens to a P25,000 gross monthly salary for a regular employee:

• •SSS (employee share): ~P1,125 — funds your pension, loans, maternity/sickness benefits
• •PhilHealth (employee share): ~P625 — covers hospitalization and outpatient care
• •Pag-IBIG (employee share): P200 — housing loans and MP2 savings eligibility
• •Withholding tax: ~P416 — income tax on earnings above P20,833/month
• •Total deductions: ~P2,366
• •Net take-home: ~P22,634

What you get back

These aren't just costs — they're benefits you can claim:

• •SSS: Retirement pension (after 120 months of contributions), salary loan (up to 2x monthly salary), maternity leave pay, sickness benefit
• •PhilHealth: Hospital bill coverage through case rates, outpatient consultations, Z-benefits for cancer and other conditions
• •Pag-IBIG: Housing loan at 5.75% (after 24 contributions), multi-purpose loan, MP2 savings at 6–7% tax-free dividends
• •Income tax: Funds public services — roads, schools, healthcare. Under TRAIN Law, the first P250,000/year is tax-free

Verify your deductions

Don't blindly trust your payslip. Use the Gov't Contributions calculator to check if your deductions are computed correctly. Then log your contributions monthly to catch any discrepancies early — some employers deduct but fail to remit to SSS/PhilHealth/Pag-IBIG.