July 23, 2024 - The Department of Budget and Management (DBM) announced on Tuesday that it has allocated PHP9.5 billion for the new medical allowance of government employees as promised by President Ferdinand R. Marcos Jr. in his third State of the Nation Address (SONA).
The fund, sourced from the Miscellaneous Personnel Benefits Fund for 2025, will benefit over a million state workers across various government agencies, including State Universities and Colleges (SUCs) and Government-Owned or -Controlled Corporations (GOCCs).
The medical allowance will serve as a subsidy for government employees to avail themselves of Health Maintenance Organization (HMO) benefits or similar plans. It is seen as a crucial step in ensuring the well-being of public servants by providing financial assistance for medical expenses.
Budget Secretary Amenah Pangandaman emphasized the administration’s commitment to healthcare, stating that the allowance aims to alleviate the medical burdens of government workers and promote better health outcomes.
Aside from the medical allowance, President Marcos also announced a four-tranche salary increase for government employees during his SONA. The DBM revealed that a total of PHP70 billion has been earmarked in the 2025 National Expenditure Program to implement the first two tranches of the salary hike.
This development marks the first salary increase for government workers since 2023, the final tranche of the Salary Standardization Law of 2019.
The specifics of the salary increase will be outlined in an Executive Order to be issued by President Marcos.