DBM releases budget for gov’t workers’ medical allowance

The Department of Budget and Management (DBM) has released the budget for the P7,000 annual medical allowance for government employees, Budget Secretary Amenah Pangandaman announced on Friday.

“The funds have been distributed to our departments and agencies, along with the guidelines,” Pangandaman said, providing an update on the allowance’s rollout.

Government agencies have begun processing the grant, which is similar to a uniform allowance. “They can pool the PHP7,000 per employee within their department and secure health maintenance organization (HMO) coverage,” she explained.

The allowance follows Executive Order (EO) 64 issued by President Ferdinand R. Marcos Jr. on August 2, 

2024, which also approved a salary increase for government workers.

Under Budget Circular 2024-6, the medical allowance may be provided as HMO-type coverage arranged by the agencies or employee organizations. 

Alternatively, it can be given in cash for those who secure their own HMO coverage or use it to reimburse medical expenses, such as hospitalization, emergency care, diagnostic tests, or medicines, in cases where HMO products are difficult to acquire.