MANILA – Budget Secretary Amenah Pangandaman announced on Friday that the Department of Budget and Management has allocated funds for the 2025 medical allowance for government employees. The allowance, amounting to PHP7,000 per employee, has been disbursed to various departments and agencies, accompanied by specific guidelines for its use. Pangandaman emphasized that the process for distributing the medical allowance is already underway across government agencies. She likened the medical allowance to a uniform allowance, noting that departments can pool the PHP7,000 and use it to secure health maintenance organization (HMO) services for their employees. This initiative follows Executive Order 64, signed by President Ferdinand R. Marcos Jr. on August 2, 2024, which also addresses salary increases for government workers. According to Budget Circular 2024-6, issued by Pangandaman, the medical allowance can be utilized for HMO-type benefits, either directly by the agencies or through employee organizations. Alternatively, it can be received in cash for those who opt to manage their own HMO benefits or cover medical expenses such as hospitalization, emergency care, diagnostic tests, and medications, especially when obtaining HMO products is challenging.
Government Employees to Receive P7,000 Medical Allowance in 2025
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