P7,000 Medical Allowance for Gov't Employees to be Released this 2025

In a significant move to enhance the welfare of public servants, the Philippine government will commence the distribution of an annual medical allowance of ₱7,000 to qualified government employees, starting in 2025. This initiative was authorized under Executive Order No. 64 s. 2024 and detailed in Budget Circular No. 2024-6, aims to subsidize Health Maintenance Organization (HMO) benefits for eligible personnel.

Scope and Coverage

The medical allowance applies to all civilian government personnel across various sectors, including:

• National Government Agencies
• State Universities and Colleges
• Government-Owned and Controlled Corporations not covered by Republic Act No. 10149 and Executive Order No. 150 s. 2021
• Local Government Units
• Local Water Districts

This encompasses employees regardless of their appointment status—be it regular, casual, contractual, appointive, elective, full-time, or part-time. However, certain groups are excluded, such as those already receiving HMO-based healthcare through special laws, personnel in the legislative and judicial branches, military and uniformed personnel, and individuals without employer-employee relationships like consultants and job order workers. 

Utilization of the Allowance

The ₱7,000 allowance serves as a subsidy for availing HMO-type benefits. Agencies have the option to procure HMO coverage collectively for their employees or allow individual personnel to select their preferred HMO plans. In areas where HMO services are inaccessible or for employees whose applications are denied, the allowance can be disbursed in cash to cover medical expenses such as hospitalization, emergency care, diagnostic tests, and medications. 

Budget Allocation

To support this initiative, the government has allocated ₱9.5 billion under the Miscellaneous Personnel Benefits Fund for 2025. This funding underscores the administration's commitment to prioritizing healthcare for its workforce. 

Official Statements

President Ferdinand R. Marcos Jr. highlighted this benefit during his third State of the Nation Address, stating that government employees will have a reliable medical allowance as an additional benefit in the coming year. Budget Secretary Amenah Pangandaman emphasized the administration's dedication to healthcare, noting that the allowance will assist public servants in managing medical expenses and ensuring their well-being. 

Possible Schedule of Release

The Department of Budget and Management (DBM) has allocated ₱9.5 billion under the 2025 national budget to fund this benefit. According to DBM sources, the release of the medical allowance may follow this timeline: (Please note that these projected timelines are based on standard government budgeting and disbursement procedures and may vary depending on the implementation strategies of individual agencies.)

📌 First Quarter of 2025 – Budget preparation and fund allocation to agencies

📌 Second Quarter of 2025 – Government agencies coordinate with HMOs or prepare cash distribution processes

📌 Mid-2025 – Expected release of the ₱7,000 allowance, depending on the agency’s implementation method

This medical allowance represents a significant advancement in the government's efforts to provide comprehensive support to its employees, ensuring they have access to essential healthcare services.

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