De Minimis Benefits (Certain Items) Increased under RR 11-2018

De Minimis Benefits (Certain Items) Increased under RR 11-2018

De Minimis Benefits (DMB) are among those sources of compensation income which are exempt from tax. Most employers rely on these benefits to augment the net pay of their employees.

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Recently, Revenue Regulation No. 11-2018, implementing the provisions of R.A. 10963 or the TRAIN Law increased certain items of the De Minimis Benefits.

It further amended Section 2.78.1 of RR No. 2-98 which now provides a higher amount for the following DMB items:

  1. Medical cash allowance to dependents of employees, not exceeding ₱1,500 per employee per semester of ₱250 per month.
  2. Rice subsidy of ₱2,000 or one sack of 50kg. rice per month amounting to not more than ₱2,000
  3. Uniform and clothing allowance not exceeding ₱6,000 per annum.

Here is the matrix of DMB showing the recent change per RR 11-2018:


The term “DE MINIMIS” benefits which are exempt from the fringe benefit tax and income tax shall, in general, be limited to facilities or privileges furnished or offered by an employer to his employees that are of relatively small value and are offered or furnished by the employer merely as a means of promoting the health, goodwill, contentment, or efficiency.

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The list was amended and made exclusive by RR 5-2011. Additional P10,000 annual benefit was added by RR 1-2015 and now, under RR 11-2018, the amounts pertaining to medical cash allowance, rice subsidy, uniform and clothing were increased.

Related: DMB Remain to be Exempt Under TRAIN Law

Withholding Tax Computation under TRAIN Law

Tax Rules on Employee Compensation under TRAIN Law

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