A mid-level software engineer in the Philippines earns a median of about PHP 70,625 a month in 2026. Metro Manila sits about 21% above that and Davao about 9% below, a spread of roughly 33% between them.
On PHP 73,000 a month the take-home is about PHP 60,044, an effective deduction rate near 17.7%. The statutory 13th month pay sits on top of that, and for most engineers it arrives untaxed.
National median
PHP 70,625
a month, mid-level, measured
Net a month
PHP 60,044
on PHP 73,000
Year-on-year growth
10%
fastest of our six markets
Check a salary against BIR withholding and contributions.
Open the Philippines take-home calculatorGross and net by level
| Level | Gross a month | Net a month | Effective rate |
|---|---|---|---|
| Junior | PHP 46,000 | PHP 39,112 | 15.0% |
| Mid-level | PHP 73,000 | PHP 60,044 | 17.7% |
| Senior | PHP 110,500 | PHP 87,663 | 20.7% |
| Lead or Architect | PHP 153,500 | PHP 119,913 | 21.9% |
Even at lead level the effective rate stays below 22%, low against most of the markets we model. The contribution ceilings for SSS, PhilHealth and Pag-IBIG are reached well before these salaries, so above mid-level almost every extra peso is taxed only by BIR withholding.
How solid are these numbers?
The city medians and the national figure are measured mid-level benchmarks from PayMetric's 2026 Philippine dataset, drawn from a single source with a confidence score of 0.65. The junior, senior and lead bands are modelled outward from that mid-level point rather than measured separately. Net pay is computed with our Philippine tax engine at 2026 TRAIN rates and current contribution schedules. For the live market range see software engineer salaries in the Philippines.
Metro Manila pays a third more than Davao
| City | Mid-level median | Against the national figure |
|---|---|---|
| Metro Manila | PHP 85,750 | +21.4% on the national median |
| Cebu | PHP 72,000 | +1.9% |
| Clark | PHP 69,250 | -1.9% |
| Davao | PHP 64,250 | -9.0% |
Cebu and Clark both sit within 2% of the national median, so the real decision is Metro Manila or elsewhere. Manila rent and commuting time absorb a good part of the 21% premium, and a Cebu role with the same employer is often the better net outcome once those are counted.
The parts of the package that are not salary
13th month pay. One twelfth of basic annual salary, statutory, due by 24 December. Combined with other bonuses it is tax-exempt up to PHP 90,000 a year, so for a mid-level engineer it usually lands whole.
Night differential. Work between 10pm and 6am carries a statutory premium, which matters for the many engineering teams aligned to US hours. On a full night schedule it is a real addition to annual pay, not a rounding item.
De minimis benefits. Rice subsidy, clothing allowance, medical allowance and the like are tax-exempt within set caps. Employers use them precisely because they are more efficient than salary, so a package with generous allowances can beat a higher basic.
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Frequently asked questions
What does a software engineer earn in the Philippines in 2026?
The national mid-level median is about PHP 70,625 a month, with the middle of the market between roughly PHP 68,000 and PHP 75,438. Metro Manila is the outlier at PHP 85,750, about 21% above the national figure and about 33% above Davao.
What does PHP 73,000 a month leave after tax?
About PHP 60,044, an effective deduction rate near 17.7% once withholding tax, SSS, PhilHealth and Pag-IBIG are taken. Philippine effective rates are low by regional standards, and the first PHP 250,000 of annual taxable income is not taxed at all under TRAIN.
Is the 13th month pay included in these figures?
No. The figures here are the monthly salary. The statutory 13th month pay is one twelfth of your basic annual salary, due by 24 December, and it sits on top. Up to PHP 90,000 a year of 13th month pay and other bonuses is tax-exempt, which for a mid-level engineer means most or all of it arrives untaxed. That effectively adds about 8% to the annual package at a lower tax cost than ordinary salary.
Why is the Metro Manila premium so large?
Because the IT-BPM and global capability centre employers that pay the top of the market are concentrated there, particularly in BGC, Makati and Ortigas. Cebu and Clark have grown as alternatives but the largest multinational engineering teams still sit in the capital. Against Davao the gap is about 33%, one of the widest city spreads in our Asian markets.
How reliable are the level bands on this page?
Treat them as a shape, not a measurement. PayMetric's 2026 Philippine dataset measures the mid-level market from a single source with a confidence score of 0.65. The junior, senior and lead figures are modelled outward from that mid-level benchmark, not observed separately. The city medians are measured.
Should I freelance for foreign clients instead?
Freelancing for overseas clients is common and the tax treatment differs sharply: you choose between the 8% flat rate on gross receipts above the PHP 250,000 allowance and the graduated rates with deductions. The 8% option is often better for a service business with low expenses. You also lose employer-paid SSS, PhilHealth and Pag-IBIG contributions and the 13th month.
Why does my offer look different from these numbers?
Allowances. Philippine packages routinely split pay into basic salary plus de minimis benefits, rice subsidy, clothing allowance, medical allowance and night differential, and the tax treatment of each differs. An offer quoting total monthly cash is not comparable with a basic salary figure. Night differential in particular can add a significant amount for teams working US hours.
Are Philippine tech salaries growing?
Faster than any other market we model here, at about 10% year-on-year against 7% for Japan, Brazil, Mexico, Poland and Vietnam. Global capability centres expanding beyond call-centre work into engineering are the main reason, and the growth is concentrated in the senior and lead bands rather than at entry level.
Salary figures are PayMetric Labs' own modelled estimates from a 2026 single-source dataset with a confidence score of 0.65, not a survey or an offer. Level bands are modelled from the measured mid-level benchmark. Net pay comes from our Philippine tax engine at 2026 TRAIN rates and current SSS, PhilHealth and Pag-IBIG schedules. General information only, not personal tax advice.