P7,000 Medical Allowance Now a Yearly Benefit for Gov't Employees
That's a 1,300% increase for public school teachers.
(SPOT.ph) Starting this year, government employees are getting a big boost in healthcare support with a new P7,000 annual medical allowance. That’s a massive upgrade from the measly P500 allowance public school teachers used to get since 2020—because honestly, what could P500 even cover these days?
The increase in allowance was rolled out under Budget Circular No. 2024-6, which is intended to subsidize Health Maintenance Organization (HMO) benefits or similar medical services. The best part? It’s completely tax-free!
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Who is eligible for the medical allowance?
Employees in national government agencies, state universities and colleges, and government-owned or controlled corporations under the Executive Department are eligible for this allowance. This includes regular, casual, or contractual employees, whether appointive or elective and full-time or part-time, as long as they have clocked in at least six months of service.
Unfortunately, not everyone in government is eligible. Military and uniformed personnel, as well as employees already receiving HMO benefits under special laws, are excluded. Consultants, contractual workers, and others without formal employer-employee relationships won’t qualify either.
The allowance is available in two forms: as an HMO-type product or in cash. Agencies can enroll employees in HMO plans or let employee groups negotiate group purchases. For those in areas with limited or no access to HMOs, the allowance will be given in cash. It can be used to renew existing HMO coverage or cover out-of-pocket medical expenses like hospital bills, emergency care, or even medication.
For agencies like government-owned and -controlled corporations (GOCCs), local government units (LGUs), or local water districts (LWDs) that can’t fully fund the P7,000, the circular requires them to provide a lower but uniform amount to employees.
If you’re eligible, congratulations! Just be sure to check in with your human resources department to learn the specific steps on how to avail this new benefit.
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