Tax Alert No. 2 [Revenue Regulations (RR) No. 29-2025]

16 Jan 2026

Further Amending the "De Minimis" Benefits Provisions of Revenue Regulations (RR) No. 2-98, as Amended, Increasing the Ceiling of Non-Taxable Benefits

Please be informed that Revenue Regulations (RR) No. 29-2025 was issued to further amend RR No. 2-98, as last amended by RR No. 004-2025, increasing the ceilings for certain de minimis benefits exempt from income tax and fringe benefit tax. These benefits include monetized leave credits, medical allowances, rice subsidy, uniform allowance, medical assistance, laundry allowance, achievement awards, gifts, meal allowance for overtime/night shift, and benefits under CBA and productivity incentive schemes.

Type of Benefit	Previous Ceiling	New Ceiling (RR No. 29-2025)
Monetized unused vacation leave credits of private employee	Not exceeding 10 days	Not exceeding 12 days
Medical cash allowance to dependents (per semester)	₱1,500.00	₱2,000.00
Rice subsidy (per month)	₱2,000.00	₱2,500.00
Uniform and clothing allowance (per annum)	₱7,000.00*	₱8,000.00
Actual medical assistance (per annum)	₱10,000.00	₱12,000.00
Laundry allowance (per month)	₱300.00	₱400.00
Employee achievement awards (per annum)	₱10,000.00	₱12,000.00
Gifts during Christmas/major anniversaries (per annum)	₱5,000.00	₱6,000.00
Daily meal allowance for overtime work and night/ graveyard shift	Not exceeding 25% of the basic wage	Not exceeding 30% of the basic wage
CBA & productivity incentives (combined per annum)	₱10,000.00	₱12,000.00