The Philippine government has officially approved a ₱7,000 medical allowance for eligible government workers in 2025.
This new benefit is part of the broader initiative to support the health and welfare of public servants across the country, especially in light of increasing healthcare costs and post-pandemic recovery.
This article outlines who qualifies, when the payments will be released, and how to claim the allowance, based on the most recent updates and government directives.
What Is the ₱7,000 Medical Allowance?
The ₱7,000 medical allowance is a one-time benefit aimed at assisting government employees with out-of-pocket healthcare expenses not covered by existing health insurance like PhilHealth.
It is expected to help cover the cost of medicine, diagnostics, outpatient procedures, and other essential medical services.
This initiative is in line with President Ferdinand Marcos Jr.’s 2025 national agenda to enhance social protection for public sector workers.
Who Qualifies for the ₱7,000 Medical Allowance?
According to the Department of Budget and Management (DBM) and the Civil Service Commission (CSC), the following workers are eligible:
| Eligibility Criteria | Details |
|---|---|
| Employment Status | Must be permanent, contractual, casual, or job order workers |
| Agency Affiliation | Must be employed in national government agencies, LGUs, or GOCCs |
| Active Service as of June 30, 2025 | Must still be in active service on or before this date |
| Not on Terminal Leave or Absence Without Leave | Must not be on extended leave or absent without official notice |
| Not Previously Sanctioned for Administrative Cases | Must not have ongoing or unresolved administrative charges |
Payment Schedule for the ₱7,000 Medical Allowance
As per Memorandum Circular No. 2025-14, the payment schedule is outlined below:
| Region | Release Date | Responsible Agency |
|---|---|---|
| NCR | July 15, 2025 | DBM NCR Office |
| Luzon (except NCR) | July 18–22, 2025 | DBM Regional Offices |
| Visayas | July 23–26, 2025 | DBM Visayas Regional Units |
| Mindanao | July 29 – August 2, 2025 | DBM Mindanao Branches |
Note: Funds will be directly released to government agencies, which are required to disburse the allowance through payroll or ATM no later than August 5, 2025.
How to Claim the ₱7,000 Allowance
There is no separate application needed for most government workers. However, to ensure smooth disbursement, employees are advised to verify the following:
Step-by-Step Guide
- Check Eligibility: Confirm that you meet the qualifications listed above.
- Coordinate with HR: Contact your agency’s HR or Accounting Division to ensure your records are updated.
- Provide Updated Bank Details: Ensure your payroll ATM or bank account is active.
- Await Confirmation: Most agencies will issue a circular or memo confirming the exact disbursement date.
- Report Discrepancies: If you don’t receive the allowance by August 10, 2025, report it to your HR department immediately.
Tax Implications and Deductions
The ₱7,000 allowance is non-taxable, based on existing guidelines for medical assistance and welfare benefits under the Bureau of Internal Revenue (BIR) rules.
However, agencies are instructed to deduct any outstanding cash advances, penalties, or overpayments from employees who are under audit, if applicable.
Government’s Rationale Behind the Allowance
The DBM and CSC highlighted several reasons for the medical allowance implementation:
- Rising healthcare costs post-pandemic
- Increased burden on PhilHealth amid budgetary issues
- Supporting productivity and morale of civil servants
- Reducing sick leave incidences among employees
This is part of a broader movement to enhance non-wage benefits for public servants without directly increasing salary rates, which are subject to a more extensive review cycle under the Salary Standardization Law.
The ₱7,000 medical allowance is a welcome relief for thousands of government workers in the Philippines. With rising medical costs and limited support, this one-time benefit can help bridge the gap in healthcare expenses.
Eligible employees should coordinate with their respective HR offices and ensure all documents and bank details are up to date.
Stay informed, verify your eligibility, and take action to receive your medical allowance on time.
Frequently Asked Questions
1. Is this ₱7,000 medical allowance given every year?
No. As of now, this is a one-time benefit approved for Fiscal Year 2025. Future releases will depend on national budget deliberations and approval from the DBM.
2. Will contractual or job order workers receive the allowance?
Yes, contractual, casual, and job order employees who are actively working in qualified agencies as of June 30, 2025, are eligible—provided they meet all other criteria.
3. What should I do if I don’t receive the ₱7,000 allowance by August?
You should first report to your HR or accounting department. If the issue is unresolved, you may escalate the concern to the DBM Public Assistance Unit or the Civil Service Commission Field Office.