Forum — Medical Allowance

Submission of Annual Report to the DBM on the Grant of Medical Allowance to Government Employee

Report on the Grant of Medical Allowance by GABOTAF

Editor’s Note:

Download Annex A (Report on the Grant of Medical Allwance) per Budget Circular No. 2024-6.

Is it required to submit liquidation of Medical Allowance to DBM?

Liquidation, Medical Allowance by GABOTAF

Editor’s Note:

This is what is provided in Item 14.2 of Budget Circular No. 2024-6:

Each NGA, SUC, GOCC, and LWD shall submit to the DBM’s Budget and Management Bureau or Regional Office concerned not later than one (1) month after every fiscal year, the annual report on the grant of the Medical Allowance by following the template in Annex “A” (Report on the Grant of Medical Allowance)

Can the Accountant withhold Salary due to nonliquidation of Medical Allowance?

Withhold Salary by GABOTAF

Editor’s Note:

The Accountant cannot automatically withhold salaries unless they have expressed authority under existing laws, rules and regulations and from competent authority such as those issued by the Commission on Audit (COA).

Is the Medical Allowance taxable?

Medical Allowance, Taxable by GABOTAF

Editor’s Note:

This is what the Guidelines on Medical Allowance provides as to whether the medical allowance is taxable or not.

Pursuant to Revenue Memorandum Circular No. 107-2024 of the Department of Finance-Bureau of Internal Revenue, the authorized Medical Allowance granted under EO No. 64, s. 2024 falls under the “de minimis” benefit contemplated in Section 2.78.1(A)(3) of Revenue Regulations (RR) No. 2-98, as amended.

Such being the case, the Medical Allowance and/or the actual premium paid to HMO providers in compliance with EO No. 64, s. 2024 is exempt from income tax and consequently, to withholding tax pursuant to Section 2.78.1(A)(3) of RR No. 2-98, as amended.