Quick answer: De minimis benefits are small employee perks that are tax-exempt in the Philippines, within BIR limits. They are not counted in the ₱90,000 benefits ceiling — only amounts above each limit become taxable. See how exempt benefits affect your tax →
What “de minimis” means
De minimis benefits are benefits of relatively small value given for the convenience or welfare of employees. The BIR lists specific categories and a peso limit for each. As long as a benefit stays within its limit, it is exempt from both income tax and withholding tax — and it does not eat into your ₱90,000 “13th month and other benefits” allowance.
The de minimis list and limits (2026)
| Benefit | Tax-exempt limit |
|---|---|
| Rice subsidy | ₱2,000/month (or a 50-kg sack of equivalent value) |
| Uniform and clothing allowance | ₱6,000/year |
| Medical cash allowance to dependents | ₱1,500/semester (₱250/month) |
| Actual medical assistance | ₱10,000/year |
| Laundry allowance | ₱300/month |
| Monetized unused vacation leave (private) | up to 10 days/year |
| Monetized leave credits (government) | unlimited (per rules) |
| Employee achievement awards (tangible) | ₱10,000/year |
| Christmas/anniversary gifts | ₱5,000/year |
| Daily meal allowance for overtime/night shift | up to 25% of the basic minimum wage |
| CBA and productivity incentives | up to ₱10,000/year combined |
These are the commonly applied BIR limits. Specific amounts can be revised by BIR regulations — confirm the current issuance.
How the limits interact with the ₱90,000 ceiling
Two separate exemptions are at work:
- Each de minimis limit — a benefit within its own limit is fully exempt and ignored for the ceiling.
- The ₱90,000 ceiling — covers 13th month pay, other bonuses, and any de minimis excess.
So if your rice allowance is ₱2,500/month, the first ₱2,000 is exempt de minimis; the extra ₱500/month (₱6,000/year) is added to your “13th month and other benefits” and only taxed if the total tops ₱90,000. See is 13th month pay taxable for how that ceiling works.
Why it matters for your tax
De minimis benefits lower your taxable income without lowering your take-home — they are pay you receive tax-free. When you compute your income tax, only your taxable compensation goes into the brackets, so correctly excluding de minimis benefits can meaningfully reduce the tax. Try the Income Tax Calculator to see the effect.
Related guides
- Income tax in the Philippines: complete guide →
- Is 13th month pay taxable? →
- How to compute income tax →
Source: Bureau of Internal Revenue (BIR), Revenue Regulations on de minimis benefits. Limits can be revised — confirm the current figures with the BIR. For guidance only.