A Guide to Understanding Your Payslip in the Philippines
A Philippine payslip has five moving parts. Once you can read them, you can check whether you are being paid correctly and, as an employer, whether your payslips meet the legal requirement to itemize pay. Here is the anatomy.
1. Employee information
Name, employee ID, and the exact pay period covered. The period matters: it defines which cut-off the earnings and deductions belong to.
2. Basic pay
The base salary for the period before any additions or deductions. Everything else on the payslip adjusts up or down from here.
3. Other earnings
Everything added on top of basic pay, including:
- Attendance-related pay such as overtime, rest day and holiday premiums, and night differential, net of absences, tardiness, and undertime.
- Recurring allowances, including de minimis benefits and company-initiated allowances.
- Bonuses such as the 13th month pay.
4. Deductions
Everything subtracted from pay, in three groups:
- Government-mandated contributions: withholding tax, SSS, PhilHealth, and Pag-IBIG, each computed from the employee's income.
- Government loans, such as SSS and Pag-IBIG salary or calamity loans.
- Company deductions, such as company loans and other recurring or one-off items.
5. Net pay
Take-home pay after all deductions, the amount that actually reaches the employee's account.
Why accurate payslips matter
- Employees can confirm they are paid correctly and that contributions are remitted.
- Itemized payslips are a legal requirement, and incorrect computations create labor exposure.
- Clear payslips cut down on payroll queries to HR.
Zalamea's payroll platform generates itemized online payslips and handles the government computations automatically. See our payroll and HR solutions.
Frequently asked questions
What are the main parts of a Philippine payslip?
Five: employee information, basic pay, other earnings (overtime, allowances, bonuses), deductions (government contributions, loans, company deductions), and net pay.
What deductions appear on a Philippine payslip?
Government-mandated contributions (withholding tax, SSS, PhilHealth, Pag-IBIG), government loan repayments, and company deductions such as company loans.
Is an employer legally required to issue a payslip?
Yes. Employers must provide employees with an itemized statement of pay showing earnings and the amount and purpose of every deduction. Inaccurate or missing payslips create labor compliance exposure.
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Make payroll easier for your team
A clear, accurate payslip starts with a payroll that gets every deduction right. We can run your payroll for you through payroll outsourcing, or set your team up on our cloud payroll software so you run it in house. Either way, computations and government contributions stay up to date. Tell us about your company and our payroll team will reach out.