For Cebu City Hall employees: P7T medical aid pushed

CEBU, Philippines — The Office of the Mayor is being urged to study the inclusion in the budget preparation of funds for the granting of a medical allowance of P7,000 per year to qualified personnel of the Local Government Unit (LGU), as recently mandated by a national order.

Last Wednesday, City Councilor Rey Gealon, chairman of the City Council’s committee on laws, ordinances, and styling, emphasized in a privilege speech the importance of benefits for government workers. He mentioned that the implementation is set for 2025.

Gealon was referring to Section 7 of Executive Order No. 64 signed by President Ferdinand Marcos, Jr. on Aug. 2, 2024, which authorizes the grant of a medical allowance of up to P7,000 annually for every government worker. He added that this amount serves as a subsidy for accessing Health Maintenance Organization (HMO)-type benefits.

“The subsidy for HMO-type benefits which employees pay for out of their own pockets will undoubtedly lighten their burden, not just to meet emergency medical and hospitalization expenses but also to access preventive health care services,” said Gealon.

He further emphasized the importance of this medical allowance, noting that it reflects the reality that many government employees face risks in the performance of their duties, with some even experiencing accidents and injuries.

The councilor said that they have personally witnessed incidents involving their colleagues in Cebu and other regions, where government employees have suffered injuries while performing their duties—whether through “transportation-related accidents, incidents during fieldwork, or other unforeseen situations”.

He cited a specific instance two years ago when a Cebu City Disaster Risk Reduction and Management Office personnel was killed in a road accident. He also mentioned that in Dalaguete town, a Job Order (JO) employee, who was working at a construction site, fell and died.

“These fatal accidents and injuries highlight the critical need for accessible medical support, which this allowance, pursuant to EO 64, aims to provide,” he said.

Gealon said that granting this medical allowance would ensure that employees get the necessary financial assistance to cover medical expenses arising from such accidents, thus allowing them to recover and return to their duties "without bearing the full financial burden alone."

By adopting EO 64, Gealon said, Cebu City is authorized to grant the same medical allowance to government employees, either through a subsidy or by procuring an HMO plan for qualified employees.

“This initiative is part of our broader strategy to create a supportive, productive, and motivated work environment for all civil servants. By offering additional allowances, we are showing that we value their sacrifices and understand the importance of their health in maintaining the efficiency and quality of the services they deliver to the public,” he said.

During the discussion, Councilor Jocelyn Pesquera, committee on health, hospital services, and sanitation head, suggested that the grant be studied first by the Human Resource Development Office (HRDO) and the Office of the Cebu City Administrator.

She said that although a national EO has already been signed, the P7,000 grant should be used for insurance.

“Because if you will just give the money to the personnel, it will really defeat the purpose because P7,000 may not be enough to cover the needs of the employees,” Pesquera said.

She volunteered to sit down with Gealon to explore the possibility of creating an ordinance to support his proposal.

Showing interest in Pesquera’s suggestion, he said City Mayor Raymond Alvin Garcia should accept applications from insurance providers that could offer a P7,000 premium.

Pesquera, though, did not like the idea.

The councilor said that it may be more costly for the city to pay for the premium of a health insurance compared to just creating a special account or trust fund that could be considered a restricted account that is solely for this purpose.

“Because P7,000 times 5,000 (estimated number of City Hall employees) is P35 million. But…if we will put it in a trust fund, the P35 million may be more than enough for the needs of our personnel,” said Pesquera.

Gealon then said studying the need and introducing the health allowance in an ordinance would serve the City Government well, as it would show that it is not ignoring the national EO.

With that, the City Council approved his resolution requesting the Office of the City Mayor to study the matter for possible inclusion in the next annual budget. — /RHM (FREEMAN)