DBM released the 2025 budget for government employees’ medical allowances

The Department of Budget and Management (DBM) has released the 2025 budget for government employees’ medical allowances, Budget Secretary Amenah Pangandaman confirmed on Friday.

“The budget has already been distributed to departments and agencies, complete with the corresponding guidelines,” Pangandaman announced, emphasizing that each government employee is entitled to PHP7,000 for their annual medical allowance.

Government agencies have begun implementing the process to grant the allowances. Pangandaman explained that the allowance operates similarly to a uniform allowance. Agencies have the flexibility to pool the PHP7,000 per employee to secure services from health maintenance organizations (HMOs) for their workforce.

This initiative aligns with Executive Order (EO) 64, signed by President Ferdinand R. Marcos Jr. on August 2, 2024, which also includes salary increases for government personnel.

According to Budget Circular 2024-6, the annual medical allowance aims to provide qualified civilian government employees with access to HMO-type benefits. Agencies or employee groups may utilize the allocation to purchase HMO coverage for their personnel.

Alternatively, employees may receive the allowance in cash to purchase or renew their own HMO plans. Those who have incurred out-of-pocket medical expenses, such as hospitalization, emergency care, diagnostic tests, or medications, may also receive the allowance in cash, particularly in cases where HMO products are difficult to acquire.

This program underscores the government’s commitment to enhancing the health and well-being of its employees, ensuring they have the support needed for medical expenses and access to quality healthcare services.

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