How to compute your

COMPONENTS: LEGEND:
Monthly Basic Salary (MBS) : 25,000 A – Annual Basic Salary Income (MBS x 12)
Bonus below 90K : 50,000 B – Provisional Income (Overtime, Taxable
Bonus above 90K :0 Allowances, Differentials et. al)
Provisional Income : 35,000 C – 13th and 14th Month Pay and Other
Bonuses in excess of 90,000
1. Gross Taxable Income (GTI) D – Mandatory (Statutory) Contributions
(SSS, HDMF & PhilHealth)
A + B + C = GTI E – Tax Rate on Taxable Income
300,000 + 35,000 + 0 = 335,000

2. Mandatory Deductions (D) ANNUALIZED TAX TABLE 2018-2022

SSS – 581.30 Annual Taxable Incom e Tax Rate
HDMF – 100
PH – 343.75 0 - 250,000 0%

TOTAL – 1,025.05 Over 250,000 - 400,000 20% o f the excess o ver 250,000

1,025.05 x 12 = 12,300.60 Over 400,000 - 800,000 30,000 + 25% o f the excess o ver 400,000

Over 800,000 - 2,000,000 130,000 + 30% o f the excess o ver 800,000

3. Net Taxable Income (NTI)

Over 2,000,000 - 5,000,000 490,000 + 32% o f the excess o ver 2,000,000

Over 5,000,000 1,450,000 + 35% o f the excess o ver 5,000,000

GTI – D = NTI
335,000 – 12,300.60 = 322,699.40

4. Annual Withholding Tax (AWT) using the new

annual tax table
NTI - E = AWT
322,699 – 250,000 = 72,699 x 20% = 14,540

5. Divide annual income tax by 28 pay periods

AWT / 28 = Estimated Semi-Monthly Withholding Tax
14,540 / 28 = 519
Note: Withholding tax may vary depending on the actual income received within the calendar year

6. Multiply the semi-monthly withholding tax by 2

TAX FOR 13TH MONTH PAY = Estimated Semi-Monthly Withholding Tax x 2
519 x 2 = 1,038
Note: 13th Month Pay is considered as two (2) pay periods that is why the multiplier is 2

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respective District HRs or email us at payrollmatters@ngcp.ph.