MANILA: Government workers are set to receive a PHP7,000 annual medical allowance as the Department of Budget and Management (DBM) formalizes the guidelines for its distribution. This allowance is part of a broader initiative aimed at enhancing the welfare of state employees.
According to Philippines News Agency, Budget Secretary Amenah Pangandaman approved Budget Circular 2024-6, which details the rules and regulations governing the grant of the medical allowance. This initiative aligns with Executive Order 64, signed by President Ferdinand R. Marcos Jr. in August 2024, which also included provisions for a salary increase for government personnel.
The medical allowance is intended as a subsidy to help government workers access health maintenance organization (HMO)-type benefits. Budget Secretary Pangandaman expressed satisfaction in fulfilling a long-standing commitment to public servants, stating that the allowance will be available starting in 2025. "This has been my dream for a long time for our fellow public servant," she said, emphasizing the allowance's role in assisting with health-related expenses.
The circular applies to all civilian government personnel in national agencies, including state universities, colleges, and government-owned and controlled corporations not covered by specific Republic Acts and Executive Orders. Eligibility extends to all government workers, regardless of their appointment status, and includes local government unit employees and those in local water districts.
The allowance can be provided as HMO-type product coverage, which can be organized by either the government agencies or the employees' organizations. Alternatively, it can be distributed in cash for those who prefer to arrange their own HMO services or renew existing ones.
Budget Secretary Pangandaman also expressed gratitude to President Marcos for prioritizing the health of state workers, noting that the medical allowance is crucial for maintaining a healthy and productive workforce. "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," she stated.
