Monthly vs Semi‑Monthly Salary Calculator Guide
At a Glance
- Supported pay schedules
- Monthly, Semi-monthly (15th/30th)
- Tax rule
- Independent Annex E tables apply to each frequency
- Key difference
- Semi-monthly tax isn't exactly half of monthly tax
- Common misconception
- Dividing monthly tax by 2 for payroll
How Contributions are Handled
Statutory contributions (SSS, PhilHealth, Pag-IBIG) are fundamentally monthly obligations. When you are paid semi-monthly, employers handle this in different ways:
1. Even split: Deducting exactly half of the monthly contribution per cutoff.
2. Staggered deduction: Deducting SSS on the first cutoff, and PhilHealth/Pag-IBIG on the second cutoff.
Regardless of the split, the total amount deducted for the month is the same.
How Withholding Tax is Handled
Withholding tax computation is strict. The BIR Annex E explicitly defines separate thresholds for Semi-Monthly payroll. For example, the zero-tax threshold for a monthly payroll is ₱20,833, but for semi-monthly it is ₱10,417.
If an employee earns fluctuating amounts per cutoff (e.g., due to overtime), computing tax on each semi-monthly payslip independently using the semi-monthly table is required.
Frequently Asked Questions
Is my net pay exactly half if I switch to semi-monthly?
Related Pages
Salary Calculator
Estimate take‑home pay after SSS, PhilHealth, Pag‑IBIG, and withholding tax from your gross monthly or semi‑monthly salary.
How to Compute Take-Home Pay
Learn the exact step-by-step formulas to compute net pay.
Salary Deductions
Hub for calculators and references covering SSS, PhilHealth, Pag-IBIG, withholding tax, and 13th month pay.