How much would be your monthly witholding tax effective January 2018
What is your Monthly Basic Salary
Estimated Witholding Tax :

How to compute

Please refer to BIR Revenue Memorandum Circular No. 1-2018 .

Step 1: Determine the total amount of monetary and non-monetary compensation for the payroll period segregating non-taxable benefits (Bonuses/incentives in excess of P90,000) and mandatory contributions (GSIS, PagIbig and PhilHealth).

GSIS = 9% of Monthly Basic Salary

PagIbig = up to P100 only.

PhilHealth = 2.75% of Monthly Basic Salary divided by 2. The minimum is 275 and the maximum is 550. Please refer to PhilHealth Circular No. 2017-0024.

Other benefits included for purpose of this computation are:

Midyear Bonus = One month salary
Yearend Bonus = One month salary
PBB = 5000
PEI = 5000
Cash Gift = 5000

Step 2: Use the appropriate table in Annex "A" for the applicable payroll period.

Step 3: Determine the compensation range and apply the applicable tax rates prescribed thereon.

Step 4: Compute the witholding tax due by adding the tax predetermined in the compensation range indicated on the column used and the tax on the excess of the total compensation over the minimum of the compensation range.


Compensation Range
P20,833 and below
P20,833 - P33,332
P33,333 - P66,666
P66,667 - P166,666
P166,667 - P666,666
P666,667 and above
Prescribed Witholding Tax
0.00 + 20% over P20,833
P2,500 + 25% over P33,333
P10,833.33 + 30% over P666,667
P40,833.33 + 32% over P166,667
P200,833.33 + 35% over P666,667