RR No. 29-2025: Further amends the “De Minimis” benefits provisions of Revenue Regulations (RR) No. 2-98, as amended, increasing the ceiling of non-taxable benefits

Key points

1. Leave and medical benefits. Monetized unused vacation leave credits of private employees are covered up to twelve (12) days a year. Medical cash allowance to dependents is covered up to ₱2,000.00 per employee per semester or ₱333.00 per month, and actual medical assistance up to ₱12,000.00 per annum.
2. Rice, uniform, and laundry. Rice subsidy is covered up to ₱2,500.00 or one sack of 50 kg. rice per month worth not more than ₱2,500.00. Uniform and clothing allowance is covered up to ₱8,000.00 per annum, and laundry allowance up to ₱400.00 per month.
3. Awards and gifts. Employee achievement awards are covered up to an annual value of ₱12,000.00 under an established written plan that does not discriminate in favor of highly paid employees. Christmas and major anniversary gifts are covered up to ₱6,000.00 per employee per annum.
4. Meals and CBA benefits. Daily meal allowance for overtime and night shifts is covered up to thirty percent (30%) of the basic minimum wage per region. CBA and productivity incentive benefits combined are covered up to 12,000.00 per employee per taxable year.
5. Government employees. The monetized value of vacation and sick leave credits paid to government officials and employees is also listed.

Who is affected

• Employees receiving de minimis benefits
• Private employees and government officials and employees

Deadlines and effectivity

• Issued: December 22, 2025