27/12/2025
📌 BIR RR No. 29-2025 — De Minimis Benefits (Quick Guide)
🔍 What changed?
RR No. 29-2025 increased the ceilings of several de minimis benefits, allowing employers to give higher non-taxable benefits to employees.
👉 If within the limit
✅ Not taxable
✅ Not subject to withholding tax
✅ Not part of taxable compensation
👉 If exceeding the limit
⚠️ Only the excess loses de minimis status
⚠️ Excess is tested under the ₱90,000 13th month & other benefits cap
⚠️ Not automatically taxable
🧾 Updated De Minimis Limits (Highlights)
Benefit Non-Taxable Limit
Monetized Leave (Private) Up to 12 days/year
Medical Cash Allowance (Dependents) ₱2,000/semester
Rice Subsidy ₱2,500/month
Uniform / Clothing ₱8,000/year
Actual Medical Assistance ₱12,000/year
Laundry Allowance ₱400/month
Achievement Awards ₱12,000/year
Christmas & Anniversary Gifts ₱6,000/year
OT/Night Shift Meals ≤ 30% of minimum wage
CBA & Productivity Incentives ₱12,000/year (combined)
📅 Effectivity Rule
Effective 15 days after publication
Date of payment controls, not accrual
No proration required
📌 Example:
Rice allowance paid after effectivity → full ₱2,500 non-taxable
⚖️ Critical Tax Rule (Often Missed)
Excess over de minimis ≠ automatic taxable income
➡️ It first goes to:
“13th Month Pay & Other Benefits”
➡️ Still non-taxable up to ₱90,000
Only the excess over ₱90,000 becomes taxable.
🛠️ Payroll & Audit Checklist
✔ Classify benefits correctly (de minimis vs 13th month vs taxable)
✔ Track payment dates, not just coverage periods
✔ Monitor ₱90,000 cap per employee
✔ Maintain written plans for awards & incentives
✔ Ensure BIR Form 2316 consistency
✔ Keep audit-ready documentation
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