RMC No. 105-2025: Clarifying the Taxability of Health Emergency Allowance Granted Under Republic Act No. 11712, Otherwise Known as the “Public Health Emergency Benefits and Allowances for Health Care Workers Act”

Key points

1. Full release or proration. The HEA is released in full when a health worker or non-health care worker physically renders services for at least ninety-six (96) hours in a month. Otherwise it is prorated.
2. Treated as other benefits. The HEA falls under “other benefits” in Section 32 (B) (7) (e) of the Tax Code, which exempts gross benefits of up to P 90,000.00 received by officials and employees.
3. Employees. Under an employer-employee relationship, regardless of employment status, the HEA may be excluded from gross income and is not subject to income tax, provided it stays within the P 90,000.00 threshold.
4. Contract of service and job orders. There is no employer-employee relationship here, so these workers are treated as self-employed professionals or independent contractors. Their HEA is subject to income tax and other applicable taxes, and to the registration and compliance requirements under RMC No. 51-2018.

Who is affected

• Public and private healthcare workers and non-healthcare workers receiving the HEA
• Individuals engaged under contracts of service and job orders

Deadlines and effectivity

• Issued: November 12, 2025
• Full HEA: at least 96 hours of physical service in a month