Payslip
Learn what a payslip is, why Philippine employers must issue one, and the deductions it shows.
Published Monday 31 August 2026
Table of contents
Key takeaways
- A payslip records an employee’s earnings and deductions for a pay period, along with the net pay they take home.
- Philippine employers are required to issue an itemised payslip every payday.
- Mandatory deductions on a Philippine payslip include SSS, PhilHealth, Pag-IBIG, and withholding tax.
- Gross pay is total earnings before deductions; net pay is what the employee actually receives once every deduction is taken out.
What is a payslip?
A payslip (also called a pay slip, pay stub, or pay advice) is a document you give an employee each payday that shows their earnings, deductions, and net pay. In the Philippines, issuing one is a legal requirement, so every payday your business needs to hand over a clear, itemised breakdown of how each person’s pay was worked out.
Are payslips required by law in the Philippines?
Yes. The Department of Labor and Employment (DOLE) requires employers to issue an itemised payslip at every payment of wages, under the Omnibus Rules Implementing the Labor Code and DOLE Labor Advisory No. 11, Series of 2014.
The rule also covers household staff. The Domestic Workers Act, or Batas Kasambahay (Republic Act No. 10361), requires you to give a payslip every payday showing pay and deductions, and to keep copies for three years. These payslip duties sit within your broader obligations as an employer.
What information is included on a payslip?
A payslip brings together everything that makes up an employee’s pay for the period. A clear, itemised payslip usually shows:
- pay period dates
- basic pay, plus any overtime, holiday pay, night differential, allowances, or commissions
- gross pay
- mandatory deductions for SSS, PhilHealth, Pag-IBIG, and withholding tax
- other deductions, such as salary loans
- net pay, also called take-home pay
- employer contributions
- year-to-date totals
Each of these lines is calculated when you process a pay run for your team.
Gross pay vs net pay
Gross pay is the total an employee earns before any deductions come out. It covers basic pay plus additions like overtime and allowances.
Net pay is the take-home amount left after every deduction, and it is the figure the employee actually receives on payday. These are standard payroll terms rather than statutory definitions.
Common payslip deductions in the Philippines
Four mandatory contributions come out of most Philippine payslips, each set by a government agency. Here are the current rates and where they come from:
- SSS (Social Security System): the total contribution is 15% of the monthly salary credit, split 10% from you and 5% from the employee. The monthly salary credit runs from PHP 5,000 to PHP 35,000, based on SSS Circular 2024-006, effective January 2025 and unchanged for 2026.
- PhilHealth: the premium rate is 5% of the monthly basic salary, shared equally by you and the employee. This applies to salaries from PHP 10,000 up to a PHP 100,000 ceiling, set by PhilHealth under the Universal Health Care Act.
- Pag-IBIG (HDMF): you and the employee each contribute 2% of the monthly fund salary. That salary is capped at PHP 10,000, so the maximum is PHP 200 each per month, per HDMF Circular No. 460.
- Withholding tax on compensation: you withhold income tax under the graduated rates of the TRAIN law. Annual compensation of PHP 250,000 or below is exempt, with rates from 15% up to 35% above that, according to the Bureau of Internal Revenue.
13th month pay and your payslip
Rank-and-file private-sector employees are entitled to 13th month pay. This is equal to at least one twelfth (1/12) of the basic salary they earn in the calendar year, and you must pay it on or before December 24, under Presidential Decree No. 851 and DOLE Labor Advisory No. 16, Series of 2025.
On the payslip, 13th month pay shows up as earnings, usually in the December pay period.
Electronic and paper payslips
Payslips were once printed and tucked into a cash pay envelope or clipped to a cheque. Today, most Philippine employers issue electronic payslips by email or through a payroll portal.
Whichever format you use, make sure every employee can open, view, and keep a copy of their payslip. If you are setting up pay runs for the first time, it helps to understand the full payroll process and how online payroll works.
Manage payslips and payroll with Xero
Xero payroll and accounting software helps you produce accurate, itemised payslips and account for SSS, PhilHealth, Pag-IBIG, and withholding tax correctly, so your business stays compliant every payday. If you would rather hand the work to a specialist, see how payroll outsourcing can lighten the load. When you are ready to run your own numbers, start with Xero and get one month free.
FAQs on payslips
Here are quick answers to some of the questions Philippine employers and employees ask most about payslips.
What is the difference between a payslip and a paycheck?
A payslip is the record showing how pay was calculated, while a paycheck is the payment of that money itself. In the Philippines, wages are usually paid by bank deposit with a payslip attached rather than by physical cheque.
How can I check my payslip online?
If your employer emails payslips or uses a payroll portal, you can open the email or log in to view and download each one. Ask your HR or payroll team for your access details if you have not received them.
Can a payslip be used as proof of income?
Yes, payslips are widely accepted as proof of income for loan, visa, and rental applications. Lenders and agencies often ask for your most recent payslips together with a certificate of employment.
What is the difference between gross pay and net pay on a payslip?
Gross pay is your total earnings before anything is deducted, while net pay is what you receive after SSS, PhilHealth, Pag-IBIG, tax, and any loans are taken out. The gap between the two equals the total of all your deductions for that period.
Are employers in the Philippines required to give payslips?
Yes. DOLE rules require every employer to give employees an itemised payslip at each payment of wages, and the same duty applies to household employers under Batas Kasambahay.
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Disclaimer
This glossary is for small business owners. The definitions are written with their requirements in mind. More detailed definitions can be found in accounting textbooks or from an accounting professional. Xero does not provide accounting, tax, business or legal advice.