What Are De Minimis Benefits?

The De Minimis benefits are those benefits of relatively small values given by employers to their employee on top of the compensation and these benefits are not subject to withholding (tax exempt)

The BIR sets a limit on the value of tax-exempt de minimis benefits. Under RR 8-00, as amended by RR 10-00, the BIR considers the following as de minimis benefits:

• 10 days monetized unused vacation leave credits;
• medical cash allowance to dependents of employees not exceeding P750 per semester or P125 per month;
• rice subsidy of P1,000.00 or one-sack of rice per month;
• uniforms and clothing allowance not exceeding P3,000.00 per year;
• medical benefits not exceeding P10,000.00;
• laundry allowance of P300 per month;
• employee achievement awards in the form of tangible personal property other than cash or gift certificate, with an annual monetary value not exceeding P10,000 received by the employee under an established written plan;
• flowers, fruits, books or similar items given to employees under special circumstances, e.g. on account of illness, marriage, birth of a baby, etc.; and
• daily meal allowance for overtime work not exceeding 25% of the basic minimum wage.