The Bureau of Internal Revenue (BIR) has issued the attached Revenue Regulations (RR) No. 29-2025 to further amend RR No. 2-98, as amended, with respect to “De Minimis” benefits which are exempt from income tax on compensation as well as from fringe benefit tax.

Below is the updated list of De Minimis benefits after the issuance of this new RR:

  1. Monetized unused vacation leave credits of private employees up to twelve (12) days;
  2. Monetized value of vacation and sick leave credits paid to government officials and employees;
  3. Medical cash allowance to dependents of employees up to Php 2,000 per semester of Php 333 per month;
  4. Rice subsidy up to Php 2,500 or one sack of 50kg rice per month amounting to not more than Php 2,500;
  5. Uniform and clothing allowance not exceeding Php 8,000 per annum.
  6. 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 P12,000 per annum;
  7. Laundry allowance up to Php 400 per month;
  8. Employee achievement awards, e.g., for length of service or safety achievement, in any form, whether in cash, gift certificate or any tangible personal property, with an annual monetary value not exceeding Php 12,000 received by the employee under an established written plan which does not discriminate in favor of highly paid employees;
  9. Gifts given during Christmas and major anniversary celebrations not exceeding Php 6,000 per employee per annum;
  10. Daily meal allowance for overtime work and night/graveyard shift not exceeding thirty percent (30%) of the basic minimum wage on a per region basis;
  11. Benefits under a Collective Bargaining Agreement and productivity incentive schemes provided that the total annual monetary value received from both CBA and productivity incentives schemes combined up to Php 12,000 per employee per annum; 

Kindly note that items (a) to (k) above were amended, except item (b).