Department of Budget and Management (DBM) Secretary Mina Pangandaman has approved the issuance of Budget Circular No. 2024-6, which provides the guidelines, rules, and regulations on the grant of the Medical Allowance to qualified civilian government personnel beginning FY 2025.
The provision of medical allowance to government workers is in line with Executive Order (EO) No. 64 s. 2024, which also prescribes the salary increase for government personnel signed by President Ferdinand R. Marcos Jr. on 02 August 2024.
“This is a promise fulfilled. Matagal ko na pong pangarap ito para sa ating mga kababayan. Pagpasok po ng 2025, maaari na po silang makatanggap ng medical allowance para makatulong sa pagkuha nila ng HMO para sa kanilang health-related expenses o gastusin. Ito po ang ipinangako ni Pangulong Bongbong Marcos at ngayon po ay tinutupad niya ito para sa ating mga lingkod bayan,” Secretary Mina said.
The Medical Allowance, in the amount not exceeding P7,000 per annum, shall be given to each qualified civilian government personnel as a subsidy to avail of health maintenance organization (HMO)-type benefits.
The Circular applies to all civilian government personnel in the national government agencies, including state universities and colleges and government-owned and controlled corporations not covered by Republic Act No. 10149 and EO No. 150, s. 2021, regardless of appointment status, whether regular, casual, or contractual; appointive or elective; and on a full-time or part-time basis.
This Circular also covers employees in the local government units and local water districts.
The Medical Allowance may be granted in the form of HMO-type product coverage, which could be availed by either government agencies concerned or their respective employees' organizations/groups.
It can also be in cash form for those who will avail their own or pay/renew their existing HMO-type benefit; and for those who paid their medical expenses, such as but not limited to hospitalization, emergency care, diagnostic tests, and medicines, due to the difficulty in acquiring HMO-product given the following:
1) Their localities/communities are identified as Geographically Isolated and Disadvantaged Areas;
2) Their localities have no adequate HMO branch or office of a licensed HMO company; or
3) The application of the personnel concerned in acquiring HMO coverage has been denied by an HMO company.
Such arrangement, however, is without prejudice to the preference of employees to opt out from group purchase, and individually avail of another HMO product.
“Muli, nagpapasalamat po tayo sa Pangulo dahil malaking bagay po ito para sa ating mga kawani. 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,” the Budget Secretary said.
