De minimis benefits are small benefits that BIR regulations list as free of income tax and of fringe benefit tax. The list is closed: a benefit that is not on it is not de minimis, even if it is small (BIR Revenue Regulations 5-2011, Sec. 1). The ceilings below are from Revenue Regulations 29-2025, dated 27 October 2025, which took effect 15 days after its publication.
The current list and ceilings
For employees in the private sector (RR 2-98 Sec. 2.78.1(A)(3), as amended by RR 29-2025):
| Benefit | Tax-free ceiling |
|---|---|
| Monetized unused vacation leave | Up to 12 days a year |
| Medical cash allowance to employees’ dependants | PHP 2,000 per employee per semester, or PHP 333 a month |
| Rice subsidy | PHP 2,500, or one 50 kg sack of rice worth not more than PHP 2,500, a month |
| Uniform and clothing allowance | PHP 8,000 a year |
| Actual medical assistance | PHP 12,000 a year |
| Laundry allowance | PHP 400 a month |
| Employee achievement awards, in cash, gift certificate or goods, under a written plan open to all staff | PHP 12,000 a year |
| Christmas and major anniversary gifts | PHP 6,000 per employee a year |
| Meal allowance for overtime and night or graveyard shift | 30% of the basic minimum wage for the region |
| Benefits under a collective bargaining agreement and productivity incentive schemes, combined | PHP 12,000 per employee a year |
Scroll the table sideways for more
Read the regulation for the exact conditions on each item, such as who counts as a dependant or how an award must be given.
Going over a ceiling
An amount above a de minimis ceiling is not taxed straight away. BIR treats the excess as part of “other benefits”, together with 13th month pay, and the total of these is tax-free up to PHP 90,000 a year (NIRC Sec. 32(B)(7)(e) as amended by RA 10963; BIR Revenue Memorandum Circular 50-2018, Q5). Only the amount above PHP 90,000 is added to taxable pay. The 2025 tax law RA 12214 (CMEPA) did not change this ceiling.
Example. An employer gives a uniform allowance of PHP 9,000 in a year. PHP 8,000 is de minimis. The other PHP 1,000 is added to the employee’s 13th month pay and other benefits for the year. If that total stays within PHP 90,000, none of it is taxed.
Where HMO premiums and other benefits fit
- Group insurance premiums. The rules on fringe benefit tax leave out the cost of premiums an employer pays for the group insurance of its employees (RR 3-98, Sec. 2.33(B)(10)), and employer contributions to insurance and hospitalization benefit plans (NIRC Sec. 33(C)(2); RR 3-98, Sec. 2.33(C)(2)).
- HMO premiums and income tax. In 2018 BIR deleted its earlier answer on group health card premiums (RMC 96-2018, removing Q7 of RMC 50-2018). It has not published a replacement in the regulations listed here. Check the current treatment with your accountant or Revenue District Office before you decide how to report them.
- Fringe benefits for managers and supervisors that are not de minimis are generally subject to fringe benefit tax, paid by the employer, with exceptions such as the insurance contributions above and benefits required by the nature of the business or given for the employer’s convenience (NIRC Sec. 33). Being outside fringe benefit tax does not settle income tax: BIR’s rules say a benefit exempt from fringe benefit tax may still form part of the employee’s taxable pay (RR 3-98, Sec. 2.33(C)).
Keeping records
- Put the benefit policy in writing: what is given, how much, how often and to whom.
- Apply the same rule to every employee in the same group.
- Keep receipts or acknowledgement slips where the benefit is in kind or reimbursed, such as medical assistance.
- Track each employee’s de minimis excess and other benefits through the year, so the PHP 90,000 ceiling is applied correctly at year-end.
For the full picture of what employers give, see employee benefits in the Philippines.
For benefits required by law, see mandatory employee benefits.
This page is general information, not tax advice. Check how a benefit applies to your business with an accountant or your Revenue District Office.
Questions people ask
Is 13th month pay part of de minimis benefits?
No. 13th month pay is a separate benefit required by PD 851. For tax, it falls under the yearly exclusion for 13th month pay and other benefits, which is capped at PHP 90,000, together with de minimis amounts above their own ceilings.
What are the new de minimis benefits thresholds for 2026?
They are the ceilings in BIR Revenue Regulations 29-2025, which raised most items. For example, the rice subsidy went up to PHP 2,500 a month, the uniform and clothing allowance to PHP 8,000 a year, and Christmas and anniversary gifts to PHP 6,000 a year. The table on this page lists every item.
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- BIR Revenue Regulations 29-2025, amending RR 2-98 Sec. 2.78.1(A)(3), de minimis benefits (bir.gov.ph) (checked 26 October 2026)
- BIR Revenue Regulations 5-2011, Sec. 1, closed list of de minimis benefits (bir.gov.ph) (checked 26 October 2026)
- BIR Revenue Memorandum Circular 50-2018, questions and answers on RR 11-2018 (bir.gov.ph) (checked 26 October 2026)
- RA 10963 (TRAIN), Sec. 9, amending NIRC Sec. 32(B)(7)(e) (lawphil.net) (checked 26 October 2026)
- RA 12214 (CMEPA), Sec. 8, amending NIRC Sec. 32 (lawphil.net) (checked 26 October 2026)
- National Internal Revenue Code, Sec. 33(C), fringe benefits not taxed (lawphil.net) (checked 26 October 2026)
- BIR Revenue Regulations 3-98, Sec. 2.33, fringe benefits tax (Supreme Court E-Library) (checked 26 October 2026)
- BIR Revenue Memorandum Circular 96-2018, amending RMC 50-2018 (bir.gov.ph) (checked 26 October 2026)