The Bureau of Internal Revenue (BIR) has issued Revenue Regulations (RR) No. 29-2025, dated 27 October 2025 and posted on the BIR website on 22 December 2025, increasing the allowable ceilings for De Minimis benefits granted to employees.
De Minimis benefits are employee benefits that are exempt from income tax and withholding tax on compensation, provided they do not exceed the prescribed limits under existing tax regulations. while maintaining compliance for employers.
Under RR No. 29-2025, the ceilings for De Minimis benefits have been increased. The table below summarizes the approved updates.
| De Minimis Benefit | Previous Ceiling | New Ceiling under RR No. 29-2025 |
| Monetized Unused Vacation Leave Credits (Private Employees) | 10 days | 12 days |
| Medical Cash Allowance for Dependents of Employees | ₱1,500/semester (₱250/month) | ₱2,000/semester (₱333/month) |
| Rice Subsidy | ₱2,000/month or 1 sack (50kg) of rice | ₱2,500/month or 1 sack (50kg) of rice |
| Uniform and Clothing Allowance | ₱7,000/year | ₱8,000/year |
| Actual Medical Assistance | ₱10,000/year | ₱12,000/year |
| Laundry Allowance | ₱300/month | ₱400/month |
| Employee Achievement Awards | ₱10,000/year (tangible only) | ₱12,000/year (cash, gift certificates, or tangible personal property) |
| Christmas and Anniversary Gifts | ₱5,000/year | ₱6,000/year |
| Daily Meal Allowance for Overtime/Night Shift Work | 25% of basic minimum wage | 30% of basic minimum wage |
| CBA and Productivity Incentives | ₱10,000/year | ₱12,000/year |
The revised ceilings shall take effect fifteen (15) days after publication in the Official Gazette or on the BIR website, whichever comes first.
This guide provides a general overview of the above transactions at the time of writing only and is not intended to be a comprehensive legal advice. This should also not be taken as an opinion on the topic. For more details and information, you may coordinate with any GVES Law Partner regarding the matter.
Atty. Niña Lyka Galindez is an Associate of GVES Law.