How to Make a Payslip in the Philippines

Manual payslip creation is time-consuming, error-prone, and a major compliance risk for growing Philippine businesses. On average, HR teams waste about 6 hours a month or over 70 hours a year, just creating payslips manually. 

This guide offers a clear, step-by-step process for making DOLE-compliant payslips. It provides HR-verified insights and the latest SSS, PhilHealth, Pag-IBIG guidelines to help keep your payroll accurate and compliant.

A payslip (also called a pay statement or salary slip) is a document given to employees that details their earnings, deductions, and net pay for a specific pay period.

Under Article 103 of the Philippine Labor Code, employers are legally required to provide workers with an itemized pay statement every payday. It helps promote transparency, allows employees to verify correct compensation, and serves as proof of income for loans, visas, or benefits.

A compliant payslip protects both the employer and the employee; it’s a small document with big legal importance.

Below is an example of what a DOLE-compliant payslip looks like. Each section is designed to meet government and audit requirements.

This section includes the essential identifiers for both employer and employee:

• Employer Name, Address, and TIN
• Employee Name, ID, TIN, and Position
• Pay Period Covered and Pay Date

HR Tip: Including complete company and employee details supports accurate record-keeping and helps during BIR or DOLE audits.

Your gross pay is the total amount earned before any deductions. Typical components include:

• Basic Salary – regular pay for standard hours
• Overtime Pay – computed based on DOLE rates: ART. 87. Overtime Work. Conditions of Employment, P.D. 442, Labor Code
  • 125% on regular OT
  • 130% on rest days
  • 150–200% on special/regular holidays
• Holiday Pay – for worked holidays
  • Overtime (Regular Workday): 125% of hourly rate
  • Overtime on Rest Day / Special Day: 130% of hourly rate
  • Special Non-Working Holiday (Worked): 130% of daily rate
  • Regular Holiday (Worked):  200% of daily rate
  • Overtime on Regular Holiday:  260% of hourly rate (200% + 30%)
  • Regular Holiday on Rest Day:  260% of daily rate (200% × 130%)
  • Special Holiday on Rest Day (Worked): 150% of daily rate (100% + 50%)
  • Double Holiday (Two regular holidays on same day):  300% of daily rate
• Allowances – e.g., transportation or meal
• Commissions & Bonuses – Additional income based on performance, sales targets, or company incentives
• 13th Month Pay – required by law under PD 851

Mandatory government deductions are required by law and are remitted to government agencies that provide key social benefits such as health insurance, retirement savings, housing assistance, and income tax.

Every payroll cycle, employers are legally obliged to withhold and remit contributions to SSS, PhilHealth, and Pag-IBIG, as well as withholding tax to the BIR. Each of these deductions serves a specific purpose, from protecting employees during sickness or retirement, to helping them access housing loans and public healthcare.

Based on the TRAIN Law, this covers the employee’s income tax, computed using BIR’s tax tables. View latest BIR Withholding Tax Table.

Funds employee benefits like sickness, maternity, and retirement. Contributions are shared by both employer and employee. Check SSS Contribution Table_2025.

This covers national health insurance for employees. Rates are updated annually by PhilHealth. View PhilHealth Premium Rates_2025.

Supports housing, savings, and short-term loans for employees. See Pag-IBIG Contribution Guide. Pag-IBIG Contribution Guide_2024.

Aside from mandatory contributions, employers may include other authorized deductions such as:

• Company Loans / Salary Advances
• Tardiness or Absences

Note: Under Article 113 of the Labor Code, salary deductions are only allowed if authorized by law or the employee.

While Excel is great for getting started, it comes with major limitations:

• Prone to human error (typos, outdated formulas)
• Time-consuming for larger teams
• Risk of non-compliance when contribution tables aren’t updated

What works for a team of 10 won’t scale to 100, and that’s where payroll automation comes in.

Why spend hours every cutoff when you can generate accurate payslips in seconds?

Sprout Payroll automatically:

• Calculates all mandatory deductions (SSS, PhilHealth, Pag-IBIG, Tax)
• Generates DOLE-compliant payslips instantly
• Ensures real-time compliance with updated government rates
• Lets employees access their payslips anytime, anywhere

Ready to save 90% of your payroll processing time and ensure 100% compliance? Book a meeting today!

Yes. Under Article 103 of the Philippine Labor Code, employers are required to provide an itemized pay statement to employees every payday.

Yes, many small businesses start with Excel because it’s simple and accessible. However, manual Excel payslips can be prone to errors and outdated formulas. For scalability and compliance, payroll automation tools are highly recommended.

Payslips must be provided every payday, whether you follow a bi-weekly, semi-monthly, or monthly pay schedule. DOLE requires that all payments be accompanied by a written or electronic proof of payment to ensure transparency.

While the Labor Code doesn’t prescribe a fixed fine for missing payslips, failure to comply can result in administrative sanctions during DOLE audits. It may also lead to disputes or complaints filed by employees.

To make a payslip in the Philippines, list the employee’s gross pay, deductions ( SSS, PhilHealth, Pag‑IBIG, withholding tax), and net pay. Include the employee’s name, position, pay period, and dates for compliance. Learn how to create one in our guide on making a payslip.