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REVENUE MEMORANDUM ORDER NO. 43-2025 issued on October 15, 2025 prescribes the guidelines on the grant of medical allowance to employees of the Bureau of Internal Revenue (BIR).

For FY 2025, the medical allowance for BIR personnel shall not exceed P 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.

The grant of the medical allowance for BIR personnel shall be subject to the following conditions and guidelines:

a. They are already in the government service and are to render services for at least a total or an aggregate of six (6) months in a particular fiscal year, including leaves of absence with pay, as well as those services rendered under any of the alternative work arrangements prescribed by the Civil Service Commission.

b. Newly-hired personnel may qualify for the grant of medical allowance after they have rendered six (6) months of service.

c. For Transferred Personnel:

i. Those who transferred to BIR within the year and was not granted medical allowance by their former agency, subject to the submission of a certification to the effect;

vii. Those who transferred to BIR within the year but was earlier granted medical allowance by their former agency shall no longer be granted medical allowance by the BIR; and

iii. Those who transferred their place of assignment within the BIR thru a Revenue Travel Assignment Order (RTAO) shall secure a Certificate of Non-Payment from previous office and submit it to the new office assignment where the certification is required to determine if they are still entitled to receive the Medical Allowance.

d. The medical allowance of personnel who are detailed to another government agency shall be granted by their parent agency, while those on secondment shall be paid by the recipient agency.

e. For compulsory retirees, whose services have been extended, may be granted the medical allowance, provided that they complete at least six (6) months of service within the year.

f. For separated employees due to retirement or resignation may be granted the medical allowance only if they have completed at least six (6) months of service within the same year prior to separation, subject to the submission of the required supporting documents.

g. Those who are formally charged with administrative and/or criminal cases, which are still pending for resolution, shall be entitled to medical allowance until found guilty by final and executory judgement, provided that:

i. Those found guilty shall not be entitled to the medical allowance in the year of finality of the decision and shall refund the amount received for that year, if any; and

ii. If the penalty imposed is only a reprimand, the personnel concerned shall be entitled to Medical Allowance.

a. For Personnel on Study Leave or Study Training/Scholarship Grant:

i. Those who are on study leave or on study/training/scholarship grant, whether locally or abroad, shall be entitled to the grant of medical allowance for the year if they render at least six (6) months of service in the same year, including leaves of absence with pay, prior to and/or after the study leave or study/training/scholarship grant; and

ii. If they are on study/training/scholarship grant for the entire year, whether locally or abroad, they shall not be entitled to the Medical Allowance.

The Medical Allowance may be granted in the following forms:

A. Group Arrangement in the form of HMO-type product coverage availed by the BIR (National and Regional Offices); or

B. Individual Arrangement in cash form through Disbursement Voucher (DV) per office for BIR personnel who:

a. Availed new HMO-type benefit;

b. Paid existing or renewed HMO-type benefit;

c. Paid their medical expenses such as but not limited to hospitalization, emergency care, diagnostic tests and medicines, due to difficulty in acquiring HMO-product in view of the following:

  • Their localities/communities are identified as Geographically Isolated and Disadvantaged Areas (GIDA), as certified by the Commissioner of Internal Revenue (CIR) for the National Office and Regional Directors in Regional Office.
  • Their localities have no adequate HMO branch or office of a licensed HMO company, as certified by the CIR for the National Office and Regional Directors in Regional Office; or
  • Application of the personnel concerned in acquiring HMO coverage has been denied by an HMO company.

Considering the number of personnel and geographical location of BIR offices particularly in the far-flung areas, the Regional Director (RD) of the concerned region are authorized to issue certification for the conditions stated in Sections VII, 1.2.3 (a and b) of the Order, as supported by relevant data from the LGU or other applicable government agencies.

For group arrangement availed through respective employee’s organization/ groups, a separate policy shall be issued to provide detailed guidelines for implementation, as necessary.

In case that the BIR personnel opted to continue their existing HMO product, the Medical Allowance shall cover the Fiscal Year, in whole or in part, when the allowance was granted.

Those who are enrolled in other HMO provider, whether as dependent of their spouse, parent/s or child/children, must provide proof of enrollment as stated in Section VIII, Item 2.2 of the Order and shall be subjected for verification of the head of office.

In addition to the preventive care and wellness programs that an HMO product must provide, an HMO product availed by BIR personnel must have at least one of the following benefits:

i. In-Patient Benefit
ii. Out-Patient Benefit
iii. Emergency Care Benefit
iv. Annual Physical Exam
v. Executive Check-up
vi. Dental Benefit
vii. Maternity Benefit

The period of HMO coverage shall be valid for twelve (12) months from the effectivity date.

If the HMO-type product availed by the concerned personnel is below the rate of Php 7,000.00, they shall still receive the entire amount of Php 7,000.00. Moreover, if the HMO-type product availed by the concerned personnel is higher than Php 7,000.00, they will personally shoulder the additional amount thereto.

The availment of Medical Allowance for both group and individual arrangement shall not be earlier than July 1st of the Fiscal Year.

The procedures, and roles and responsibilities in availing and payment of Medical Allowance are specified in the Order, including the prescribed reports for submission.