De minimis benefits are the small allowances the BIR lets employers give tax-free, as long as each stays under its ceiling. Revenue Regulations No. 29-2025 raised those ceilings from 6 January 2026. Here are the new limits and what to do with anything above them.
- Within the ceilings, de minimis benefits are not taxable and do not count against the ₱90,000 exemption.
- The excess over a ceiling becomes an "other benefit" under the ₱90,000 exemption, and is taxed only once that is used up.
- The list is closed: benefits not on it are not de minimis, whatever their size.
De minimis ceilings for 2026
| Benefit | Ceiling from 6 January 2026 | Before |
|---|---|---|
| Rice subsidy | ₱2,500 a month (or one 50 kg sack worth up to ₱2,500) | ₱2,000 |
| Uniform and clothing allowance | ₱8,000 a year | ₱7,000 |
| Medical cash allowance to dependents | ₱2,000 a semester (about ₱333 a month) | ₱1,500 |
| Actual medical assistance | ₱12,000 a year | ₱10,000 |
| Laundry allowance | ₱400 a month | ₱300 |
| Christmas and major anniversary gifts | ₱6,000 a year | ₱5,000 |
| Employee achievement awards, in any form | ₱12,000 a year | ₱10,000 |
| Monetized unused vacation leave | 12 days a year | 10 days |
| Meal allowance for overtime or night/graveyard shift | 30% of the regional basic minimum wage per day | 25% |
| CBA and productivity incentive benefits | ₱12,000 a year combined | ₱10,000 |
How the excess is taxed
Anything above a ceiling is not immediately taxable. It joins 13th month pay, bonuses and other benefits under the ₱90,000 yearly exemption. Only the part of that combined total above ₱90,000 is added to taxable compensation.
- Rice subsidy given
- ₱3,000.00
- De minimis, tax-free
- ₱2,500.00
- Excess, counted as an other benefit
- ₱500.00
- Excess over a year, under the ₱90,000 exemption
- ₱6,000.00
The excess is taxable only if the employee's 13th month pay, bonuses and other excesses together pass ₱90,000 for the year.
Where they show on the payroll and Form 2316
De minimis benefits appear on the payslip as non-taxable earnings and are reported in the non-taxable part of the employee's BIR Form 2316 at year end. Payslip.ph applies each ceiling per category and moves the excess into the ₱90,000 bucket automatically. For the tax on the rest of the salary, see the withholding tax table 2026.