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P9.5 billion allocated for gov’t workers’ medical allowance in the Philippines in 2025

The Department of Budget and Management (DBM) has earmarked P9.5 billion for medical allowances for government workers in 2025. This announcement followed President Ferdinand Marcos Jr.’s State of the Nation Address (Sona), where he committed to providing additional benefits to government employees.

In his third Sona at the Batasang Pambansa on Monday, July 22, President Marcos Jr. stated, “Para naman sa ating mga kawani ng gobyerno, mayroon silang maaasahang medical allowance bilang karagdagang benepisyo sa susunod na taon.”

The DBM clarified that the medical allowance will serve as a subsidy for health maintenance organization (HMO) benefits or HMO-type benefits for government workers starting next year. “For its implementation, a total of P9.5 billion has been allocated under the Miscellaneous Personnel Benefits Fund for 2025,” the department said in a statement on Tuesday.

This medical allowance will be available to employees under national government agencies, state universities and colleges, and government-owned or -controlled corporations within the executive department.

DBM Secretary Amenah Pangandaman highlighted the importance of this initiative, stating, “Sa pamamagitan po ng pagbibigay ng medical allowance sa ating mga lingkod-bayan, matutulungan po natin silang maibsan ang kanilang medical expenses kung kinakailangan, at masigurong napangangalagaan ang kanilang kalusugan.”