In a major step toward improving employee welfare, the Philippine government has introduced a ₱7,000 annual medical allowance for government workers, starting in 2025. This initiative aims to enhance healthcare access and financial support for public servants by subsidizing Health Maintenance Organization (HMO) benefits.
Executive Order No. 64 and Its Implementation
President Ferdinand R. Marcos Jr. signed Executive Order No. 64 on August 2, 2024, which provides salary increases and additional benefits for government employees. One of the key provisions is the introduction of the ₱7,000 medical assistance, which will help government workers cover their healthcare needs.
The Department of Budget and Management (DBM) has issued Budget Circular No. 2024-6 to guide the distribution of this allowance. DBM Secretary Amenah F. Pangandaman emphasized that investing in government employees’ health is crucial to ensuring a more productive workforce.
Who Is Eligible?
This benefit applies to employees in national government agencies, state universities and colleges, and select government-owned corporations, regardless of whether they hold regular, casual, contractual, appointive, elective, full-time, or part-time positions. Employees of local government units and local water districts are also covered.
However, individuals under job order and contract of service arrangements are not eligible for this allowance.
How the ₱7,000 Medical Assistance Can Be Used
The allowance can be utilized in three ways. First, government agencies or employee organizations can use the funds to procure HMO-type coverage, providing employees with access to various healthcare services. Alternatively, employees can opt to receive the allowance in cash and use it to renew their existing HMO plans. Lastly, in areas where obtaining HMO coverage is difficult, such as remote locations, employees may directly use the funds to cover medical expenses, including hospitalization, emergency care, diagnostic tests, and medications.
Benefits for Public School Teachers
Public school teachers stand to benefit significantly from this initiative. Previously, they were entitled to only a ₱500 annual medical examination allowance. With the new policy, teachers can pool their funds to secure more comprehensive healthcare coverage. Education Secretary Sonny Angara highlighted that this initiative is a step toward ensuring teachers’ well-being and efficiency in their roles.
A Step Toward Better Healthcare Support
The ₱7,000 annual medical assistance is a significant move toward improving healthcare support for government workers. By providing flexible options for its use, the government acknowledges the diverse needs of public servants and reinforces its commitment to their health and welfare.