THE Department of Budget and Management (DBM) Secretary Mina Pangandaman has approved Budget Circular No. 2024-6, outlining the rules and regulations for the grant of a Medical Allowance to qualified civilian government personnel beginning Fiscal Year (FY) 2025.
This initiative aligns with Executive Order (EO) No. 64 s. 2024, which also mandates salary increases for government personnel, signed by President Ferdinand R. Marcos Jr. on August 2, 2024.
Enhancing Government Employees’ Healthcare
“This is a promise fulfilled. This medical allowance is a long-held dream to support our hardworking public servants. Starting 2025, they will receive this benefit to help cover health-related expenses, such as securing HMO coverage,” Secretary Pangandaman stated.
The Medical Allowance, capped at ₱7,000 annually, aims to subsidize health maintenance organization (HMO)-type benefits for eligible personnel.
Who Qualifies?
The Circular applies to all civilian personnel in national government agencies, including state universities and colleges, and government-owned and controlled corporations (not covered by RA No. 10149 and EO No. 150, s. 2021). Eligible employees include:
Regular, casual, or contractual staff
Elective or appointive positions
Full-time or part-time personnel
The allowance also covers employees of local government units (LGUs) and local water districts.
Modes of Benefit Distribution
The Medical Allowance may be granted in various forms:
- HMO-Type Coverage: Agencies or employee organizations may facilitate group HMO coverage.
- Cash Reimbursement: For personnel in geographically isolated and disadvantaged areas (GIDAs), or those without access to HMO services, cash reimbursements can cover hospitalization, emergency care, diagnostics, and medicines.
- Individual HMO Availment: Employees can opt out of group purchases and acquire HMO coverage independently.
Secretary Pangandaman’s Commitment
“This Medical Allowance is more than just a benefit—it is a vital investment in the health and well-being of our workforce. A healthy workforce ensures efficient public service delivery,” Pangandaman added, extending gratitude to President Marcos for making this initiative possible.
The DBM’s move marks a significant step in safeguarding the health of government employees while fostering productivity and commitment within the public sector.