The Department of Budget and Management (DBM) has set aside some PHP9.5 billion for the new medical allowance of government employees announced by President Ferdinand R. Marcos Jr. in his third State of the Nation Address (SONA).

In a statement Tuesday, the DBM said the appropriation was allocated under the Miscellaneous Personnel Benefits Fund for 2025 and is set to benefit over a million state workers.

Government workers will each receive a medical allowance as a subsidy to avail Health Maintenance Organization (HMO) benefits or HMO-type benefits, the DBM said.

The medical allowance can be used for various medical services, helping public employees be prepared for any health-related emergencies, it added.

This covers employees under national government agencies, State Universities and Colleges, and Government-Owned or -Controlled Corporations of the Executive department.

“As you know, healthcare is a top priority of this administration. 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 (With this medical allowance for our public servants, we can help them ease their medical expenses if needed and ensure that they can take care of their health),” Budget Secretary Amenah Pangandaman said.

In his third SONA on Monday, Marcos announced the provision of the new medical allowance and the four-tranche increase in the salaries of government workers.

According to the DBM, Marcos will issue an Executive Order detailing the salary hike.

It added that a total of PHP70 billion has been allotted in the 2025 National Expenditure Program to ensure the implementation of the 1st and 2nd tranches of the salary increase.

The last time salaries of government workers were increased was in 2023, the fourth and last tranche of the Salary Standardization Law of 2019, which started in 2020. (PNA)