Job offers and raises
Compare Two Salaries
A ₱8,000 raise doesn't put ₱8,000 more in your bank account. See how much of a new salary you actually keep after contributions and withholding tax.
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Your comparison
Salary Difference
- Gross Salary Difference
- ₱8,000.00
- Estimated Take-home Difference
- ₱6,240.00
- Percentage Increase
- 19.05%
- Estimated Annual Gross Difference
- ₱96,000.00
- Estimated Annual Take-home Difference
- ₱74,880.00
Both salaries are treated as basic pay and run through the same SSS, PhilHealth, Pag-IBIG, and BIR rules as the salary calculator.
Salary planning guide
Why you keep less of a raise than you expect
Deductions don't grow evenly with your salary. SSS and Pag-IBIG stop at a ceiling, PhilHealth keeps rising until ₱100,000, and withholding tax takes a bigger share as you move up the brackets. Every extra peso of a raise is taxed at your top bracket, not your average rate.
Example: ₱42,000 to ₱50,000
| Monthly | ₱42,000 | ₱50,000 | Change |
|---|---|---|---|
| SSS | ₱1,750.00 | ₱1,750.00 | ₱0.00 |
| PhilHealth | ₱1,050.00 | ₱1,250.00 | +₱200.00 |
| Pag-IBIG | ₱200.00 | ₱200.00 | ₱0.00 |
| Withholding tax | ₱3,008.33 | ₱4,568.33 | +₱1,560.00 |
| Take-home pay | ₱35,991.67 | ₱42,231.67 | +₱6,240.00 |
Of the ₱8,000 raise, SSS takes nothing because it's already at its ₱1,750 cap. PhilHealth takes 2.5% (₱200). The remaining ₱7,800 of taxable income sits in the 20% bracket, so tax takes ₱1,560. You keep ₱6,240, or 78% of the raise.
How much of a raise you keep, by salary level
| Raise | Gross increase | Take-home increase | You keep |
|---|---|---|---|
| ₱20,000 → ₱25,000 | ₱5,000 | ₱4,311.25 | 86% |
| ₱25,000 → ₱30,000 | ₱5,000 | ₱3,931.25 | 79% |
| ₱42,000 → ₱50,000 | ₱8,000 | ₱6,240.00 | 78% |
| ₱60,000 → ₱80,000 | ₱20,000 | ₱15,130.83 | 76% |
| ₱100,000 → ₱120,000 | ₱20,000 | ₱15,000.00 | 75% |
Basic salary only, using the rates on the deduction tables page.
Asking for a take-home target
If you want a specific amount more in hand each month, divide it by the share you keep. At ₱42,000, you keep about 78% of each extra peso. So to take home ₱10,000 more a month, you would need roughly ₱10,000 ÷ 0.78 ≈ ₱12,800 more in gross salary. Enter the numbers above to check.
What else to compare besides monthly pay
- 13th month pay grows with your basic salary. In the example above, the higher salary also adds ₱8,000 a year to your 13th month pay. It's tax-free up to ₱90,000, so the full annual gain is ₱74,880 + ₱8,000 = ₱82,880.
- Non-taxable allowances are worth more per peso. De minimis benefits like a rice subsidy or laundry allowance, within BIR limits, aren't taxed. A ₱2,000 rice subsidy is worth ₱2,000 to you, while ₱2,000 more in basic pay is worth about ₱1,560 at the 20% bracket.
- Allowances usually don't count toward 13th month pay, overtime, or holiday pay. An offer that shifts pay from basic salary into allowances lowers all of these.
- HMO coverage, leave credits, and work arrangement. Commuting costs and time can easily be worth thousands of pesos a month.
Common questions
Salary comparison FAQs
Can a raise ever lower my take-home pay?
No. Philippine withholding tax is progressive, so only the part of your income above each bracket threshold is taxed at the higher rate. A raise always leaves you with more, just not the full amount.
Why does the take-home difference shrink at higher salaries?
Higher salaries fall into higher tax brackets: 20% from ₱33,333 of taxable income, 25% from ₱66,667, and 30% from ₱166,667. PhilHealth also keeps rising until ₱100,000.
Should I compare offers by gross or take-home pay?
Use take-home pay for your budget and gross pay for negotiating. Then add the benefits that aren't in either figure: 13th month pay, bonuses, allowances, and HMO.