January 02, 2025 - Government workers can now look forward to receiving a PHP7,000 medical allowance in 2025, as the Department of Budget and Management (DBM) has officially approved the guidelines for its grant.
Budget Secretary Amenah Pangandaman announced on Thursday that Budget Circular 2024-6, outlining the rules and regulations for the medical allowance, has been approved. This development follows the issuance of Executive Order (EO) 64 s. 2024, which also included a salary increase for government personnel and was signed by President Ferdinand R. Marcos Jr. on August 2, 2024.
"This is a promise fulfilled," Secretary Pangandaman stated, emphasizing that the annual medical allowance will serve as a subsidy for government employees to access health maintenance organization (HMO)-type benefits.
"This has been my dream for a long time for our fellow public servants. By 2025, they can receive a medical allowance to help them get an HMO for their health-related expenses," she added.
The DBM circular covers a wide range of civilian government personnel, including those in national government agencies, state universities and colleges, and government-owned and controlled corporations not covered by Republic Act 10149 and EO 150, s. 2021.
All government workers, regardless of their appointment status (regular, casual, contractual, appointive, elective, full-time, or part-time), are eligible for the medical grant. Employees in local government units and local water districts are also included.
The allowance can be granted in two ways:
- HMO-type product coverage: Government agencies or their respective employees' organizations/groups can avail of HMO benefits directly.
- Cash form: Employees can use the cash allowance to pay for their own HMO-type benefits or renew existing ones.
Secretary Pangandaman expressed gratitude to the President for prioritizing the health of state workers. "This medical allowance is not just a benefit, it's a vital investment in safeguarding a healthy workforce and ensuring that they perform at their best," she concluded.
This news will undoubtedly be welcomed by government employees across the country, providing them with much-needed support for their healthcare needs.