Sample De Minimis Benefits of Employee with PhP20,000 Monthly Salary
The term “De Minimis” benefits (DMB) 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, good- will, contentment, or efficiency. (See page 103, Tax Solutions on Employee Compensation and Benefits 2nd Edition [Aligned with TRAIN Law], 2019 by Atty. Elvin Villanueva)
With the enactment of the TRAIN Law many wonder whether changes have been made on the non-taxability of the DMB under this new statute.
According to the BIR, there is no change in the tax treatment for the DMB. It is still considered as compensation not subject to income tax and consequently, not subject to withholding tax, and neither to fringe benefit tax. (A3, RMC 50-2018)
The DMB list was amended and made exclusive by RR 5- 2011. Additional P10,000 annual benefit was added by RR 1-2015. It was further amended by RR 11-2018 increasing the Medical cash allowance to dependents of employees, not exceeding P1,500 per employee per semester, of P250 per month, or P3,000 per annum.
Also, rice subsidy of P2,000 or one sack of 50 kg. rice per month amounting to not more than P2,000. Finally, uniform and clothing allowance not exceeding P6,000 per annum. RMC 50-2018 also confirms the changes.
The amended list of DMB as of last amendment by RR 11-2018: (See page 104, Tax Solutions on Employee Compensation and Benefits 2nd Edition)
- Monetized unused vacation leave credits of employees not exceeding ten (10) days during the year;
- Monetized value of vacation and sick leave credits paid to government officials and employees;
- Medical cash allowance to dependents of employees not exceeding P1,500 per employee per semester of P250 per month;
- Rice subsidy of P2,000 per month or one (1) sack of 50 kg. rice per month amounting to not more than P2,000.00 granted by an employer to his employees;
- Uniform and Clothing allowance not exceeding P6,000.00 per annum;
- Actual medical assistance e.g. medical allowance to cover medical and healthcare needs, annual medical/ executive check-up, maternity assistance, and routine consultations, not exceeding P10,000.00 per annum.
- Laundry allowance of P300 per month;
- Employees achievements awards, e.g. for length of service or safety achievement, which must be 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 which does not discriminate in favor of highly paid employees;
- Christmas gifts not exceeding P5,000.00 per employee per annum;
- Daily meal allowance for overtime work and night/graveyard shift not exceeding twenty-five percent (25%) of the basic minimum wage on a per region basis; and
- Benefits received by an employee by virtue of a collective bargaining agreement (CBA) and productivity incentive schemes provided that the total annual monetary value received from both CBA and productivity incentive schemes do not exceed ten thousand pesos (PhP10,000.00) per employee per taxable year.
For instance, Ms. Demina Misbinipit is a rank-and-file employee in NCR with a monthly salary of PhP20,000.00. She is monthly paid where her company uses the 365 factor.
The following would be the sample package integrating DMB in her pay (the amount of SSS contribution used is prior to repeal of the law) and the tax presentation:
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