FAQs
DBM Budget Circular No. 2024-6: Medical Allowance for Civilian Government Personnel
Up to P7,000
FY 2025
HMO-type Benefit
Eligibility Rules
Proof and Reports
Quick Guide in One Minute
- What it is: Medical Allowance subsidy to help qualified civilian government personnel avail HMO-type benefits.
- Maximum amount: Not exceeding P7,000 per year for full-time service in FY 2025.
- How it may be given: HMO coverage (group) or cash (for HMO or eligible medical expenses under specific conditions).
- Key eligibility rule: Must render at least six (6) months of service in the fiscal year (subject to rules).
- Proof required: Proof of HMO enrollment or supporting receipts when cash is granted for medical expenses.
What You Can Receive
FY 2025 Cap
P7,000
per annum (full-time)
Part-time
Pro-rated
based on hours of service
If part-time in two or more agencies, you may receive proportionate amounts per agency, but the total must not exceed the authorized cap.
Ways the Allowance May Be Given
Option A: HMO-type coverage procured by agency
Option B: HMO-type coverage via employees’ group
Option C: Cash for employees’ own HMO or renewal
Option D: Cash for medical expenses when HMO is difficult to obtain (specific cases)
FAQs
Tap a question to open the answer.
1. What is DBM Budget Circular No. 2024-6?
It provides the rules and regulations on granting the Medical Allowance to qualified civilian government personnel beginning FY 2025,
as authorized by EO No. 64, s. 2024.
2. How much is the Medical Allowance?
For FY 2025, the Medical Allowance for full-time service shall not exceed P7,000 per year. For part-time service, it is pro-rated
in direct proportion to the allowance for full-time service.
3. Who is covered by the Circular?
The Circular covers civilian government personnel in NGAs (including SUCs) and covered GOCCs, regardless of appointment status
(regular, casual, contractual), appointive or elective, and full-time or part-time. It also covers employees in LGUs and LWDs.
4. Who is excluded?
Excluded are those already receiving HMO-based healthcare services via special laws, personnel in offices with fiscal autonomy,
military and uniformed personnel, GOCCs covered under RA No. 10149 and EO No. 150, and those hired without employer-employee
relationship funded from non-PS (e.g., job orders/contract of service and similar arrangements).
5. How can the Medical Allowance be granted?
It may be granted as (1) HMO-type product coverage through agency or employees’ group procurement, or (2) cash form for employees
who will avail or renew their own HMO-type benefit, or (3) cash for medical expenses when acquiring HMO coverage is difficult due to
specific allowable conditions (e.g., GIDA, no adequate HMO branch, or application denied by HMO company).
6. What is the minimum service requirement to qualify?
The personnel must render at least a total or aggregate of six (6) months of service in a particular fiscal year, including leaves
of absence with pay and services under alternative work arrangements recognized by the CSC.
7. Are newly hired employees entitled immediately?
A newly hired employee may qualify for the Medical Allowance after rendering six (6) months of service.
8. What if I am on detail or secondment?
If on detail to another agency, the Medical Allowance is granted by the mother agency. If on secondment, it is paid by the recipient agency.
9. What if I transferred to another agency within the year?
If you were not granted the allowance by the former agency, the new agency may grant it upon submission of certification.
If you already received it from the previous agency, you will no longer be granted again by the new agency for the same year.
10. If the HMO coverage is less than P7,000, do I refund the difference?
No. If the HMO-type product availed is below the P7,000 rate, the employee is not obligated to refund the excess amount.
11. Can cash be used for medical expenses instead of HMO?
Yes, but only when acquiring HMO coverage is difficult due to specific allowable conditions (e.g., GIDA certification, no adequate HMO branch,
or application denied). In such cases, the allowance may be used for medical expenses like hospitalization, emergency care, diagnostic tests,
and medicines, subject to agency internal guidelines.
12. What proof must employees submit?
Employees must submit proof of HMO enrollment (e.g., HMO agreement/ID, membership certification, or official receipt). If cash is granted for
medical expenses, supporting documents such as receipts must be submitted, subject to agency internal guidelines.
13. Is the Medical Allowance taxable?
The Circular cites that the authorized Medical Allowance falls under the de minimis benefit category and is exempt from income tax and,
consequently, withholding tax, subject to applicable rules.
14. Where will agencies charge the funds?
For NGAs and SUCs, it is charged to available PS allotments (with options for deficiency per rules). For covered GOCCs, it is charged against
their approved Corporate Operating Budgets (COB). For LGUs and LWDs, their own applicable funding and budgeting rules apply.
15. When does this Circular take effect?
The Circular takes effect on January 1, 2025.
Practical Checklist for Employees
- Confirm you are covered and not excluded.
- Make sure you meet the six (6) months service requirement.
- Decide how you will use the allowance (HMO coverage or eligible cash use).
- Prepare your proof of HMO enrollment or receipts (as applicable).
- Follow your agency’s internal guidelines on release, use, and monitoring.
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