De minimis benefits list and ceilings for 2026
The ten items below are the complete list. The letters follow the regulation.
| Item | Ceiling from January 2026 | Before (2025) | Source |
|---|---|---|---|
| (a) Monetized unused vacation leave (private sector) — Up to 12 days a year; government employees' monetized leave is fully exempt | 12 days a year | 10 days | RR 29-2025 |
| (c) Medical cash allowance to dependents — ₱2,000 a semester or ₱333 a month | ₱2,000 a semester (₱333 a month) | ₱1,500 a semester | RR 29-2025 |
| (d) Rice subsidy — Or one 50-kg sack worth up to ₱2,500 a month | ₱2,500 a month | ₱2,000 a month | RR 29-2025 |
| (e) Uniform and clothing allowance — ₱7,000 from 14 Feb 2025 (RR 4-2025); ₱6,000 before | ₱8,000 a year | ₱7,000 | RR 29-2025; RR 4-2025 |
| (f) Actual medical assistance — Medical allowance, annual check-up, maternity assistance, routine consultations | ₱12,000 a year | ₱10,000 | RR 29-2025 |
| (g) Laundry allowance | ₱400 a month | ₱300 a month | RR 29-2025 |
| (h) Employee achievement awards — Length of service or safety, in cash, gift certificate or goods, under a written plan | ₱12,000 a year | ₱10,000 | RR 29-2025 |
| (i) Christmas and major anniversary gifts | ₱6,000 a year | ₱5,000 | RR 29-2025 |
| (j) Overtime or night-shift meal allowance — Up to 30% of the regional basic minimum wage per day | 30% of the regional daily minimum wage | 25% | RR 29-2025 |
| (k) CBA benefits and productivity incentives (combined) | ₱12,000 a year | ₱10,000 | RR 29-2025 |
Source: RR 29-2025 Sec. 1 (dated 27 October 2025, signed 18 November 2025, released on the BIR website 22 December 2025; effective 15 days after publication, 6 January 2026). Previous amounts: RR 11-2018 for items (a) to (e) and RR 4-2025 for (e) and (h); older amounts for items (f), (g), (i), (j) and (k) are as reported by accounting firms because RR 5-2011 and RR 1-2015 could not be opened on the BIR site. Government employees' monetized leave credits are fully exempt.
Annual tax-free ceiling per de minimis item, 2026
| Item | Pesos a year |
|---|---|
| Rice subsidy | ₱30,000 |
| Medical assistance | ₱12,000 |
| Achievement awards | ₱12,000 |
| CBA and productivity | ₱12,000 |
| Uniform and clothing | ₱8,000 |
| Christmas gifts | ₱6,000 |
| Laundry | ₱4,800 |
| Dependents' medical | ₱4,000 |
13th month pay tax exemption: the ₱90,000 ceiling
Your 13th month pay, Christmas bonus, productivity incentives not under a CBA, and any excess de minimis are "other benefits". Together they are exempt up to ₱90,000 a year under NIRC Sec. 32(B)(7)(e) as amended by the TRAIN Law; only the amount above ₱90,000 is taxable compensation. On Form 2316 the exempt part goes in item 34 and the excess in item 48.
“Gross benefits received by officials and employees of public and private entities: Provided, however, That the total exclusion under this subparagraph shall not exceed Ninety thousand pesos (₱90,000) which shall cover: … (ii) Benefits received by employees pursuant to Presidential Decree No. 851, as amended by Memorandum Order No. 28, dated August 13, 1986; … and (iv) Other benefits such as productivity incentives and Christmas bonus.”
| Status | Proposal | Ceiling |
|---|---|---|
| In force (2018 to now) | NIRC Sec. 32(B)(7)(e) as amended by RA 10963 | ₱90,000 |
| Pending (filed July 2025) | Senate Bill 56 | ₱150,000 |
| Pending (filed August 2025) | House Bill 3784 | ₱120,000 |
| Pending (filed February 2026) | House Bill 7661 | ₱150,000, with inflation adjustment |
Bills as reported in news and bill copies; none had been enacted as of November 2026. Until a law is signed and takes effect, payroll must use ₱90,000.
Where does the excess go?
How each peso of a benefit is taxed
1Is the benefit on the de minimis list?
Rice, uniform, medical, laundry, awards, Christmas gift, dependents' medical, CBA/productivity, leave, meal allowance.
Within the item's ceiling
Tax-free as de minimis
Form 2316 item 35.
Above the ceiling, or not on the list
Add to 13th month and other benefits
Counted against the ₱90,000 ceiling.
Total other benefits ≤ ₱90,000
Tax-free
Form 2316 item 34.
Total other benefits > ₱90,000
Excess is taxable compensation
Form 2316 item 48; withheld at your bracket.
Worked example: a sample benefits package
- 1
Rice subsidy ₱3,000 a month: ₱2,500 is de minimis, ₱500 × 12 = ₱6,000.00 is excess
Only the amount above the ceiling moves.
- 2
Uniform allowance ₱10,000: ₱8,000 is de minimis, ₱2,000.00 is excess
- 3
Medical ₱12,000 and Christmas gift ₱5,000: both within their ceilings
No excess.
- 4
Other benefits: 13th month ₱80,000 + excess ₱8,000.00 = ₱88,000.00
Below the ₱90,000 ceiling.
Taxable portion
₱0.00
All ₱143,000.00 of benefits is tax-free. With a ₱90,000 13th month instead, ₱8,000.00 would be taxable.
The sample package, split by tax treatment
- Tax-free de minimis
- Tax-free within ₱90,000
- Taxable
| Bar | Tax-free de minimis | Tax-free within ₱90,000 | Taxable |
|---|---|---|---|
| 13th month ₱80,000 | ₱55,000 | ₱88,000 | ₱0 |
| 13th month ₱90,000 | ₱55,000 | ₱90,000 | ₱8,000 |
Common mistakes and consequences
| Mistake | Consequence | How to avoid it |
|---|---|---|
| Using the 2025 ceilings in 2026 payroll | Over-withholding on rice, uniform and medical | Update payroll to RR 29-2025 from January 2026 |
| Taxing the whole benefit once it passes the ceiling | Over-withholding | Only the excess moves, and only to the ₱90,000 pool |
| Calling any small perk 'de minimis' | Deficiency tax for the employer at audit | Only the ten listed items qualify |
| Ignoring the excess entirely | Under-withholding; tax due at year-end | Add the excess to 13th month and other benefits |
| Achievement awards given without a written plan | Award becomes taxable | Keep a written plan that does not favour highly paid staff |
| Watch-out | Why it matters | What to do |
|---|---|---|
| Mid-month effectivity in January 2026 | RR 29-2025 took effect about 6 January | Apply the new ceilings to January payroll unless your adviser says otherwise |
| Meal allowance tied to the minimum wage | The ceiling moves when your region's wage order changes | Recheck after every wage order |
| Benefits paid by a previous employer | They count toward your ₱90,000 for the year | Give your new employer the old Form 2316 |
Buod sa Tagalog
Ang de minimis benefits ay maliliit na benepisyong walang buwis hanggang sa takdang halaga. Mula Enero 2026 (RR 29-2025): rice subsidy ₱2,500 kada buwan, uniform ₱8,000 kada taon, medical ₱12,000, at Christmas gift ₱6,000. Ang sobra ay idinadagdag sa 13th month pay at iba pang benepisyo, na walang buwis hanggang ₱90,000 kada taon. Ang lalampas sa ₱90,000 lang ang may buwis.
Frequently asked questions
+What are the de minimis benefits for 2026?
Under RR 29-2025, effective about 6 January 2026: rice ₱2,500 a month, uniform ₱8,000 a year, medical assistance ₱12,000, laundry ₱400 a month, achievement awards ₱12,000, Christmas gifts ₱6,000, dependents' medical allowance ₱2,000 a semester, CBA and productivity incentives ₱12,000, 12 days of monetized leave, and meal allowance up to 30% of the minimum wage.
+Is the 13th month pay taxable?
Only above ₱90,000. Your 13th month pay, Christmas bonus, other benefits and any excess de minimis are exempt up to ₱90,000 a year combined under NIRC Sec. 32(B)(7)(e). For most employees the 13th month is fully tax-free. The amount above ₱90,000 is added to taxable compensation.
+Was the ₱90,000 13th month exemption increased?
Not as of November 2026. Senate Bill 56 (₱150,000), House Bill 3784 (₱120,000) and House Bill 7661 (₱150,000) are pending, with more filed after the July 2026 State of the Nation Address, but none has become law. Employers must keep using ₱90,000 until a law takes effect.
+What happens if a de minimis benefit exceeds its ceiling?
Only the excess loses de minimis treatment. It is added to your 13th month pay and other benefits, which stay tax-free up to ₱90,000 a year. Tax applies only if that total goes over ₱90,000. This treatment comes from RR 5-2011 and RR 1-2015 as applied in practice.
+Is a ₱3,000 monthly rice subsidy tax-free?
₱2,500 of it is tax-free as de minimis. The other ₱500 a month (₱6,000 a year) joins your other benefits and stays tax-free as long as your 13th month and other benefits stay within ₱90,000 for the year.
+Are de minimis benefits subject to fringe benefits tax?
No. De minimis benefits are excluded from the fringe benefits tax under NIRC Sec. 33(C)(4), and RR 29-2025 restates that they are exempt from both income tax on compensation and the fringe benefits tax. Benefits for managerial employees outside the list may be subject to the 35% fringe benefits tax.
+Can achievement awards be given in cash?
Yes, since RR 4-2025 (effective February 2025). Length-of-service and safety awards can be cash, gift certificates or goods, up to ₱12,000 a year from January 2026, under a written plan that does not favour highly paid employees.
+Do government employees get the same de minimis benefits?
Mostly, and their monetized vacation and sick leave credits are fully exempt with no day limit, unlike the 12-day ceiling for private employees. Government benefits under the ₱90,000 ceiling also include those received under special laws listed in Sec. 32(B)(7)(e).
Sources and references
- RR 29-2025 — current de minimis ceilings, effective about 6 January 2026 (checked November 12, 2026)
- RR 4-2025 — uniform ₱7,000 and cash achievement awards (2025) (checked November 12, 2026)
- RR 11-2018 — de minimis items (a) to (e) and the ₱90,000 ceiling rules under TRAIN (checked November 12, 2026)
- RA 10963 (TRAIN Law), Sec. 9 amending NIRC Sec. 32(B)(7)(e) — the ₱90,000 ceiling (checked November 12, 2026)
- Grant Thornton Philippines, note on RR 4-2025 — secondary source for the treatment of excess de minimis (checked November 12, 2026)
Related tools and guides
Author and editorial review
Deepak Middha, Chartered Accountant
Chartered Accountant with 18 years in hedge funds; writes and maintains sulat.ph. Every rate, ceiling, deadline and fee on this page is taken from the National Internal Revenue Code or a BIR issuance and was checked against that source on November 12, 2026. Where a figure could not be confirmed officially, the page says so.
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