MANILA – The Department of Budget and Management (DBM) has announced the release of the 2025 budget for the medical allowance of government employees, as stated by Budget Secretary Amenah Pangandaman on Friday. The allocation, amounting to PHP7,000 per employee, has been distributed to various departments and agencies, accompanied by specific guidelines for its use.
Pangandaman explained that the allowance is similar to a uniform allowance, allowing departments to pool the funds. This pooled amount can then be used to secure health maintenance organization (HMO) services for their staff. The initiative follows Executive Order 64, signed by President Ferdinand R. Marcos Jr. on August 2, 2024, which also addresses salary increments for government workers.
According to Budget Circular 2024-6, issued by Pangandaman, the annual medical allowance aims to subsidize HMO-type benefits for qualified civilian government personnel. The allowance can be utilized in various forms: as coverage for HMO-type products, which can be arranged by the agencies or their employees’ organizations, or as cash payments for those who prefer to manage their own HMO benefits or have already incurred medical expenses.
The cash option is particularly beneficial for employees who have faced challenges in obtaining HMO products and have had to pay out-of-pocket for medical services such as hospitalization, emergency care, diagnostic tests, and medications.