DepEd Order No. 016, s. 2025, issued on June 9, 2025, outlines the guidelines for granting medical allowance to eligible Department of Education (DepEd) teaching and non-teaching personnel. This initiative aims to ensure access to essential healthcare services, promote overall well-being, and enhance the financial security of DepEd personnel.
Key Provisions of the Order:
Rationale: Civilian government personnel, including DepEd staff, face financial strain due to rising medication and hospitalization costs. While PhilHealth provides health insurance, it is often insufficient. This medical allowance, mandated by Executive Order (EO) No. 64, s. 2024 and DBM Circular No. 2024-6, provides a subsidy of up to PhP7,000.00 per annum for availing health maintenance organization (HMO) benefits. The goal is to reduce financial burden, foster a competent workforce, and enhance productivity.
Scope: The order applies to all eligible DepEd teaching and non-teaching personnel, regardless of their appointment status (permanent, co-terminus, fixed-term, casual, or contractual), subject to the provisions in Section V of the guidelines.
Policy Statement: The DepEd aims to update benefits, establish an equitable healthcare system, enhance satisfaction and motivation, and decrease absenteeism and financial ruin due to medical concerns. It also seeks to support other health initiatives and demonstrate the Department's proactive role in employee well-being.
Eligible Personnel:
- Personnel in government service who have rendered at least six months of service in a fiscal year, including paid leaves and alternative work arrangements.
- Newly hired personnel after six months of service in a fiscal year.
- Personnel who transferred to DepEd and were not granted medical allowance by their previous agency, upon submission of a certification.
- Personnel on detail to another government agency (granted by mother agency) and those on secondment (paid by recipient agency).
- Compulsory retirees whose services have been extended.
- Personnel formally charged with administrative and/or criminal cases, pending resolution, or found guilty with a penalty of reprimand.
- Personnel on study leave with pay or scholarship grants who render at least six months of service in the same year.
Ineligible Personnel:
- Those hired without employer-employee relationships and funded from non-Personnel Services (PS) appropriations/budgets, such as consultants, student laborers/apprentices, and those engaged through contracts of service or job orders.
- Officials and personnel already receiving HMO-based healthcare services through special laws.
- Personnel who transferred to DepEd within the year but already received medical allowance from a previous agency for the same year.
- Personnel whose medical allowance is funded by their respective Local Government Units (LGUs).
- Personnel found guilty of administrative and/or criminal cases in the year the decision becomes final; they must also refund any allowance received.
- Personnel on study leave with pay or scholarship grants for the entire year.
Availment Options: The medical allowance can be availed through group availment or individual availment.
Group Availment: Facilitated through DepEd procurement of HMO-type products, encouraged to include benefits for high-risk cases (pregnant women, senior citizens, PWDs) with a 12-month coverage. HMO packages should include in-patient, out-patient, emergency care, annual physical exam, and dental benefits. The procurement is handled by the designated Focal Office (FO).
Individual Availment: Can be availed through payroll disbursement for new or renewed individual HMOs or as cash payment for medical expenses. For cash payments, conditions include being in Geographically Isolated and Disadvantaged Areas (GIDAS), localities with no adequate HMO branch, or denial of HMO coverage by a company.
Fund Source and Rates: The medical allowance is charged against available PS allotments. For FY 2025, the allowance for full-time DepEd personnel will not exceed PhP7,000.00 per annum. For part-time service, the allowance is proportionate to full-time service, ensuring the total allowance does not exceed the authorized amount if employed by multiple agencies.
Exemption from Income Tax: The medical allowance and/or actual premium paid to HMO providers under EO No. 64, s. 2024, are exempt from income tax and withholding tax.
Roles and Responsibilities: Various DepEd offices, including the Employee Welfare Division at the Central Office, Administrative Divisions in Regional Offices, and Administrative Units in Schools Division Offices and Schools, are responsible for implementing, monitoring, and reporting on the medical allowance grant.
Data Privacy: All third-party providers involved must comply with the Data Privacy Act of 2012 (RA No. 10173) and National Privacy Commission (NPC) issuances. Sensitive personal information collected will be treated as confidential and used solely for legitimate purposes with prior written consent.
The order takes effect immediately upon approval, issuance, and publication on the DepEd website, with certified copies to be registered with the UP-ONAR. Inquiries can be directed to the Bureau of Human Resource and Organizational Development-Employee Welfare Division.
To download this DepEd Memo, please click here: DO_s2025_016
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