De minimis benefits in the Philippines: list and limits
De minimis benefits are small employee benefits that are exempt from income tax up to a ceiling. The BIR raised several ceilings for 2026 under Revenue Regulations No. 29-2025.
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What the term means
De minimis benefits are benefits so small that they are not treated as compensation for income tax. The employer does not withhold tax on them and the employee does not report them, provided each benefit stays within its ceiling.
Ceilings for 2026
The figures below come from Revenue Regulations No. 29-2025, which applies to taxable year 2026. Confirm them against the regulation before you configure payroll.
| Benefit | Ceiling |
|---|---|
| Rice subsidy | ₱2,500 a month, or one 50 kg sack of rice worth up to ₱2,500 |
| Uniform and clothing allowance | ₱8,000 a year |
| Medical cash allowance to dependents | ₱2,000 per employee a semester, or ₱333 a month |
| Actual medical assistance | ₱12,000 a year |
| Laundry allowance | ₱400 a month |
| Meal allowance for overtime or night work | Up to 30% of the regional minimum wage |
| Collective bargaining agreement and productivity incentive schemes | ₱12,000 a year, one combined ceiling |
| Vacation leave (private employees) | 12 days a year |
Above the ceiling
An amount over the ceiling is taxable. It is added to 13th month pay and other benefits, which is exempt only up to ₱90,000 a year. See Is 13th month pay taxable?.
Setting this up in payroll
Add each benefit as its own line, so that you can see the amount against its ceiling. Keep the amount for each employee within the ceiling, and treat anything extra as taxable income for the period.
This page is general information, not tax advice. Ceilings can change, so check the current BIR issuance.
Questions people ask
What are de minimis benefits?
Small benefits given to employees that are not taxed as compensation, as long as each stays within its ceiling.
What happens to amounts above the ceiling?
The excess is taxable. It is added to the 13th month pay and other benefits, which is exempt only up to ₱90,000 a year.
Did the ceilings change?
Yes. Revenue Regulations No. 29-2025 raised several of them, including the rice subsidy and the uniform allowance, for 2026.
Should I rely on this table for filing?
Check each ceiling against the text of the regulation before you set up payroll. The BIR can issue further changes.
Sources
- BIR Revenue Regulations No. 29-2025, de minimis benefit ceilings (effective for taxable year 2026)
- BIR Revenue Regulations No. 11-2018, de minimis benefits under the TRAIN Law