Gov’t employees to get annual P7,000 medical allowance starting 2025
MANILA, Philippines — The Department of Budget and Management (DBM) approved the guidelines granting qualified government workers an annual medical allowance of P7,000 starting in 2025.
This allowance is part of President Ferdinand Marcos Jr.’s Executive Order No. 64, which mandates an increase in the salaries and benefits of government workers, including the provision of an annual medical allowance to support their access to health maintenance organization (HMO) benefits.
"Pagpasok po ng 2025, maaari na po silang makatanggap ng medical allowance para makatulong sa pagkuha nila ng HMO para sa kanilang health-related expenses,” DBM Secretary Amenah Pangandaman said in a statement on Thursday, January 2.
(Entering 2025, they can now receive their medical allowance so they can get an HMO for their health-related expenses.)
The guidelines for the medical allowance were outlined in Budget Circular 2024-6, which covered all civilian personnel in national government agencies, including state universities and colleges and selected government-owned and controlled corporations. These personnel are covered regardless of appointment status, whether regular, casual, contractual, appointive, elective, full-time or part-time.
Employees in local government units and local water districts are also included, said the DBM.
However, job order and contract of service personnel are not covered by the Circular.
Government workers can avail of the medical allowance in the form of an HMO-type product coverage that could be availed by either the government agency, or their respective employees’ organization.
They may choose to receive the allowance in cash to renew or pay for their own HMO coverage. The medical allowance can also be used for medical expenses, such as hospitalization, emergency care, diagnostic tests, and medicines.
Employees may also receive the medical allowance in cash if they face difficulty obtaining HMO coverage due to factors such as being in a geographically isolated and disadvantaged area, lacking access to adequate HMO branches, or having their HMO application denied. Pangandaman emphasized that this provision will significantly benefit 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 said.
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