RR No. 5-2011, as further amended by RR No. 8-2012 De minimis benefits

►   RR No. 5-2011 amends Section 2.78.1 (A)(3)(c) and (d) of RR 2-98, and Section 2.33(C) of RR No. 3-98. The updated list of de minimis benefits are as follows:

a)   Monetized unused vacation leave credits of private employees not exceeding 10 days during the year:

b)   Monetized value of vacation and sick leave credits paid to government officials and employees;

c)   Medical cash allowance to dependents of employees, not exceeding P750 per employee per semester or P125 per month:

d)  Rice subsidy of P1,500 or 1 sack of 50 kg rice per month amounting to not more than P1.500;

e)   Uniform and clothing allowance not exceeding P4.000 per annum; (Now P5.000 per annum per RR No. 8-2012 dated May 11, 2012)

        f) 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 per annum

g) Laundry allowance not exceeding P300 per month;

h) Employees achievement awards, e.g., for length of service or safety achievement, which must be in the form of a 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;

i)   Gifts given during Christmas and major anniversary celebrations not        _£^ y _c.-gJ\ exceeding P5.000 per employee per annum;

j)   Daily meal allowance for overtime work and niflht/qraveyard shift not exceeding 25% of the basic minimum wage on a per region basis.

All other benefits given by employers  shall not be considered as "de minimis" benefits, and hence, shall be subject to income tax as well as withholding tax on compensation income

RR No. 5-2011, as further amended by RR No. 8-2012 De minimis benefits