The Department of Finance has issued Revenue Regulations 29-2025 on 22 December 2025, raising the thresholds for De Minimis benefits those small but valuable perks that are tax-free for your employees.
These changes mean more allowance for everyday benefits like rice, clothing, medical support, laundry, and even achievement awards helping you give your team a little extra while staying compliant.
Effective Date
The new thresholds take effect on 6 January 2026, 15 days after publication on the BIR website.
With PayrollPlus by Mustard Seed Systems, managing these updates is simple:
- Automatically compute De Minimis benefits according to the new BIR thresholds.
- Generate accurate payroll and government reports easily.
- Track allowances, bonuses, and awards for all employees.
- Employees can view payslips anytime through the Self-Service Portal, making payroll transparent and accessible.
Key Updates for 2026
These 2026 De Minimis updates allow employers to offer more value to their employees without any additional tax liability. It’s a simple way to boost morale, reward performance, and start the year right!
Make 2026 a year of growth, perks, and happy employees with the updated De Minimis benefits.
