REVENUE REGULATIONS (RR) NO. 029-2025
This RR further modifies and supplements the provisions of RR No. 2-98, as last amended by RR No. 004-2025.
In accordance with this Regulation, the prescribed ceilings for non-taxable de minimis benefits are hereby adjusted and increased to the amounts set forth below, for application in determining the tax-exempt status of such benefits in compliance with existing tax laws and regulations.
| De Minimis Benefits | Previous Threshold | New Threshold |
| Monetized unused vacation leave credits (private employees) | Not exceeding ten (10) days during the year | Not exceeding twelve (12) days during the year |
| Monetized vacation and sick leave credits (government officials/employees) | Monetized value of credits paid | No change |
| Medical cash allowances to dependents of employees | Not exceeding ₱1,500.00 per employee per semester or ₱250.00 per month | Not exceeding ₱2,000.00 per employee per semester or ₱333.00 per month |
| Rice subsidy | ₱2,000.00 or one (1) sack of rice per month amounting to not more than ₱2,000.00 | ₱2,500.00 or one (1) sack of rice per month amounting to not more than ₱2,500.00 |
| Uniform and clothing allowance | Not exceeding ₱7,000.00 per annum | Not exceeding ₱8,000.00 per annum |
| Actual medical assistance (including medical allowance, check-ups, maternity assistance, routine consultations) | Not exceeding ₱10,000.00 per annum | Not exceeding ₱12,000.00 per annum |
| Laundry allowance | Not exceeding ₱300.00 per month | Not exceeding ₱400.00 per month |
| Employee’s achievement awards | With an annual value not exceeding P10,000.00, under a non-discriminatory written plan | With an annual value not exceeding P12,000.00, under a non-discriminatory written plan |
| Gifts during Christmas or major anniversaries | Not exceeding ₱5,000.00 per employee per annum | Not exceeding ₱6,000.00 per employee per annum |
| Daily meal allowance (overtime/night/graveyard shift) | Not exceeding twenty-five percent (25%) of the basic minimum wage on a per region basis | Not exceeding thirty percent (30%) of the basic minimum wage on a per region basis |
| De Minimis Benefits | Previous Threshold | New Threshold |
| Benefits received by an employee by virtue of a collective bargaining agreement (CBA) and productivity incentive scheme | Combined (amount received from CBA and productivity incentive scheme) annual value does not exceed ten thousand pesos (10,000.00) per employee per taxable year | Combined (amount received from CBA and productivity incentive scheme) annual value does not exceed twelve thousand pesos (12,000.00) per employee per taxable year |
All prior rules, regulations, and other issuances, including any parts, sections, or provisions thereof, which are inconsistent, contrary, or in conflict with any of the provisions of these Regulations, are hereby expressly amended, modified, or repealed to the extent of such inconsistency, conflict, or contravention.
This regulation shall take effect fifteen (15) days following its publication in the Official Gazette or in the BIR Official Website, whichever comes first.