The Department of Budget and Management (DBM) has released the 2025 medical allowance for government employees, providing each worker with P7,000 for healthcare expenses, according to Budget Secretary Amenah Pangandaman on Friday, January 24.
Pangandaman confirmed that the DBM has already distributed the funds to various government agencies and departments, along with guidelines for utilization.
The release has been completed, and the guidelines are in place, with each government employee set to receive P7,000 for their medical allowance, she said.
She added that the government agencies have begun distributing the medical allowance. Employees can pool their funds within departments and select their preferred Health Maintenance Organizations (HMOs) for coverage.
The allowance works similarly to a uniform allowance, where departments can consolidate the PHP 7,000 per employee, and employees can choose HMOs that suit their needs.
This initiative stemmed from Executive Order No. 64, which President Ferdinand R. Marcos Jr. signed on August 2, 2024, also granting salary increases to government personnel.
Budget Circular 2024-6 outlines that the medical allowance will help qualified civilian government employees secure HMO-type benefits.
The DBM can provide the allowance through the agency’s selected HMO coverage, or employees can choose their own HMO plans.
The circular indicates that the DBM will reimburse employees in cash for medical expenses, such as hospitalization, emergency care, diagnostic tests, or medications, particularly for those who are unable to access HMO coverage.
Reymund Titong is a Filipino journalist steadily building his voice in the field of news reporting, driven by a commitment to tell meaningful and relevant stories.
He serves as a correspondent for Rappler, maintains a personal blog on Medium, and is the communications officer of Hope Builders Organization Negros Island.