The paper presents a decimal matrix code (DMC) developed for passive RFID tags, utilizing a decimal algorithm to enhance error detection and correction capabilities while minimizing area and power consumption. Simulations conducted on a Spartan-6 FPGA demonstrated that the DMC outperforms existing matrix and Hamming codes, achieving a power requirement of approximately 0.1 mW and a delay of 3.109 ns. The encoder-reuse technique employed further reduces circuit overhead without compromising functionality.