The Department of Budget and Management (DBM) has approved guidelines that will provide eligible government employees with an annual medical allowance of P7,000 beginning in 2025.
In a statement on Thursday, January 2, DBM said that Budget Secretary Amenah Pangandaman approved Budget Circular No. 2024-6, issued on December 12, 2024.
The annual medical allowance, capped at P7,000 per employee, was authorized under Executive Order (EO) No. 64 s. 2024. This EO, signed by the President on August 2, 2024, also includes provisions for salary increases for government personnel.
“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,” Pangandaman said.
“This is a promise fulfilled,” she added.
The guidelines for the medical allowance, detailed in Budget Circular 2024-6, apply to all civilian personnel in national government agencies, including state universities and colleges, as well as selected government-owned and controlled corporations.
The DBM also clarified that employees of local government units and local water districts are eligible for the said benefit. However, job orders and contracts of service personnel are excluded from the circular’s provisions.
Government employees can access the medical allowance through an HMO-type product, which can be secured by either the government agency or their respective employees’ organization.
Alternatively, they may opt to receive the allowance in cash to renew or pay for their personal HMO coverage. The allowance can also be used for medical expenses, such as hospitalization, emergency care, diagnostic tests, and medicines.
For those who face challenges in obtaining HMO coverage—such as being in geographically isolated and disadvantaged areas, lacking access to HMO branches, or experiencing application denials—the allowance may be provided in cash. Budget Secretary Amenah Pangandaman highlighted that this initiative will greatly benefit government workers. (TCSP)
