The Department of Education (DepEd) has begun implementing its new policy granting public school teachers and personnel an annual ₱7,000 medical allowance, which they may use to enroll in health maintenance organization (HMO) coverage or receive as direct cash aid.
Under DepEd Order No. 16, s. 2025, the medical allowance may be availed of in three ways: through a group HMO package arranged by DepEd, through the purchase or renewal of a personal HMO plan, or as direct cash disbursement via payroll. The cash option primarily benefits personnel in Geographically Isolated and Disadvantaged Areas (GIDAs) where HMO providers are unavailable, as well as employees whose HMO applications are declined.
Education Secretary Sonny Angara said the initiative is part of the government’s commitment to strengthen teacher welfare, boost morale, and address absenteeism in schools. “By ensuring that our educators have access to healthcare, we are also securing the quality of learning for our students,” he noted.
The allowance covers permanent, co-terminus, fixed-term, casual, and contractual employees who have rendered at least six months of service within the year. However, consultants, job order workers, apprentices, and student laborers are not included.
For those choosing HMO coverage, the full ₱7,000 will be released through payroll in advance, even if the chosen package costs less. Employees are still required to submit proof of enrollment, and failure to comply may lead to withholding of future allowances.
The program, backed by Executive Order No. 64, s. 2024 and DBM Circular No. 2024-6, formalizes a long-standing clamor from the teaching sector for healthcare support. Reports from the field confirm that some DepEd personnel, including those in Cebu, have already received the subsidy either as HMO coverage or cash assistance.
With its rollout this year, DepEd hopes the allowance will ease the medical expenses of its workforce and allow teachers to focus on their classrooms without the added burden of healthcare costs.
