The medical allowance will be given to personnel working in national government agencies, state universities and colleges, certain government-owned and -controlled corporations, local government units, and local water districts
Philippine Government Employees to Receive P7,000 Yearly Medical Allowance Starting 2025
MANILA, Philippines – In a significant move to enhance the well-being of government employees, President Ferdinand Marcos Jr. has approved a P7,000 yearly medical allowance for government workers beginning 2025.
The Department of Budget and Management (DBM) recently published Budget Circular No. 2024-6, which outlines the guidelines for the allowance established by Executive Order No. 64, issued in August 2024.
Who Qualifies for the Allowance?
The allowance is designed for personnel working in national government agencies, state universities and colleges (SUCs), government-owned and -controlled corporations (GOCCs) not covered by the GOCC Governance Act of 2011, and Executive Order No. 150, series of 2021. Employees of local government units (LGUs) and local water districts (LWDs) are also eligible.
Qualification is open to all employees regardless of their appointment status—regular, casual, contractual, appointive, or elective—and whether they work full-time or part-time. The only requirement is that they have worked in government for at least six months.
Quotes from government officials highlight the importance of this allowance. “This medical allowance is not just a benefit, it’s a vital investment in safeguarding a healthy workforce and ensuring that they perform at their best,” Pangandaman asserted.
Eligibility Exclusions
However, several categories of employees are excluded from receiving the allowance. These include those with HMO-based healthcare services due to specific laws, personnel working in the legislative and judicial branches and other offices with fiscal autonomy, military and uniformed personnel, consultants and experts hired for a specific period or project, laborers hired through job contracts or pakyaw, student laborers, and those under job orders and contracts of service.
How Will the Allowance Be Provided?
The medical allowance can be provided through either an HMO-type product coverage arranged by the employee’s organization or in cash if the employee prefers to opt out and individually avail of another HMO product. The allowance is expected to cover the relevant fiscal year.
According to DBM, funding for the allowance will come from the Personnel Services allotments of the employees’ respective national government agencies and SUCs. If needed, they can also tap into the Miscellaneous Personnel Benefits Fund and other available appropriations under the country’s yearly budget.
GOCCs will finance their employees’ allowances through their respective annual corporate operating budgets.
Handling Funding Shortages
The circular also specifies a contingency plan for GOCCs, LGUs, and LWDs that cannot allocate the full P7,000 per employee. In such cases, a lower but uniform amount will be granted to all qualified employees.
This decision ensures that even in situations where complete funding is unavailable, government employees will still receive some form of medical assistance.
With this new measure, the Philippines aims to improve the health and productivity of its workforce, fostering a healthier and more motivated public sector.
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