Rules on state workers’ medical allowance OK’d

MANILA, Philippines —  The Department of Budget and Management (DBM) has approved the guidelines for the grant of medical allowance to qualified civilian employees of the government starting this year.

DBM Secretary Amenah Pangandaman approved Budget Circular 2024-6, which contains the guidelines, rules and regulations on the grant of medical allowance to qualified government workers starting fiscal year 2025.

The provision of the medical allowance is in line with Executive Order (EO) 64, which also prescribed the salary increase for government workers.

The EO was signed by President Marcos on Aug. 2, 2024.

“This medical allowance is not just a benefit, it’s a vital investment in safeguarding a healthy workforce and ensuring that the workers perform their best,” Pangandaman said.

Under the guidelines, the allowance, which will not exceed P7,000 per annum, will be given to qualified civilian government personnel as a subsidy in availing themselves of a health plan or insurance.

The circular applies to all civilian workers in national government agencies, including state universities and colleges as well as government-owned and controlled corporations not covered by Republic Act 10149 and EO 150, regardless of appointment status.

The circular also covers employees in local government units and water districts.

“The medical allowance may be granted in the form of an HMO-type product coverage, which could be availed of by government agencies or their employees’ organizations,” the DBM said, referring to health maintenance organization.

The allowance can be given in cash for those who will avail themselves on their own, or pay or renew their existing HMO-type benefits.

It can also come in the form of cash for those who paid their medical expenses such as hospitalization, emergency care, diagnostic tests and medicine, or due to the difficulty in acquiring HMO products, especially in geographically isolated and disadvantaged  areas, according to the guidelines.