REVENUE MEMORANDUM ORDER (RMO) NO. 043-2025
Section 7 of Executive Order No. 64 (2024) authorizes a medical allowance of up to ₱7,000 per year, starting Fiscal Year 2025, for qualified government civilian personnel. This allowance serves as a subsidy for Health Maintenance Organization (HMO)-type health benefits and is subject to the conditions and guidelines issued by the Department of Budget and Management (DBM), as stated in Budget Circular No. 2024-6 (December 12, 2024).
I. Definition of Terms
| Particulars | Definition |
| Geographically Isolated and Disadvantage Areas (GIDAs) | Communities that have limited access to basic health services due to physical barriers (such as distance, harsh weather, and transportation difficulties) and socio-economic factors (including social, cultural, and economic conditions that restrict access and use of health services). |
| HMO provider | A legally organized entity that provides or arranges pre-agreed health care services to members in exchange for a fixed prepaid fee for a set period. |
| HMO-type product | A health care agreement for individuals, families, or groups approved by the Insurance Commission (IC) Circular Letter No. 2017-19 and issued by licensed HMO companies. |
| Medical Allowance | A minimum benefit granted to employees (Section 2.78.1(A)(3) of Revenue Regulations No. 2-98) and is not subject to income tax or withholding tax. |
| Head of Office | The highest-ranking official in a division, office, service, or group responsible for overall leadership. |
| Administrative Action Personnel (APP) | BIR staff assigned to handle administrative matters in various offices and divisions. |
| Six (6) Month of Service | Service period computed based on legal guidelines, generally counting 30 days per month unless referring to a specific calendar month. |
II. Rates of the Medical Allowance
For the year 2025, the Medical Allowance for BIR personnel shall not exceed ₱7,000.00 per annum.
For each subsequent year, the Medical Allowance shall not exceed the amount authorized under the pertinent general provisions in the annual General Appropriations Act.
III. Conditions and Guidelines for the grant of Medical Allowance
The grant of the Medical Allowance for BIR personnel shall be subject to the following conditions and guidelines:
1. Personnel already in government service must have rendered at least 6 months of service within the fiscal year (including leave with pay and approved alternative work arrangements) to qualify for the medical allowance.
2. Newly hired personnel become eligible for medical allowance after completing 6 months of service.
3. For Transferred Personnel:
3.1 Employees who transferred to BIR within the year and did NOT receive a medical allowance from their previous agency may receive it in BIR if they provide certification from the former agency confirming non-payment.
3.2 Employees who transferred to BIR within the year and already received a medical allowance from their previous agency will NOT be granted another medical allowance by BIR.
3.3 Employees who transferred within BIR through a Revenue Travel Assignment Order (RTAO) must secure a Certificate of Non-Payment from their previous office to determine if they are still eligible to receive the medical allowance in their new assignment.
4. Personnel detailed to another government agency will receive the medical allowance from their parent agency.
Personnel on secondment will receive the allowance from the recipient agency.
5. Compulsory retirees whose service has been extended may be granted the medical allowance if they complete at least 6 months of service within the year.
6. Separated personnel—whether due to retirement, resignation, or death – may receive the medical allowance only if they completed at least six months of service within the same year and meet the required conditions, with reimbursement in case of death limited to valid HMO coverage or eligible medical expenses claimable by legal heirs.
7. For those formally charged with administrative and/or criminal case, they may still receive medical allowance while the case is unresolved, until found guilty by final judgment, provided.
7.1 If found guilty, they lose entitlement to the allowance for that year and must refund any amount received.
7.2 If the penalty is only a reprimand, they remain entitled to the medical allowance.
8. For personnel on Study Leave or Study Training/Scholarship Grant: 8.1 Personnel on study leave or study/training/scholarship (local or abroad) are entitled to the medical allowance if they render at least 6 months of service in the same year, including service before and after the study leave, and including leave with pay.