Department of Education Order 2025-16

DepEd Order 16 sets specific rules for implementing EO 64’s ₱7,000 annual Medical Allowance for more than 900,000 teachers and personnel.

Objective: To ensure the allowance is used exclusively for HMO-type health benefits while upholding DepEd’s principles on teacher welfare, transparency, and non-commercialization.

Policy Highlights

Policy Statement Item (f) states:

"The Department shall demonstrate its proactive role in protecting and promoting the holistic well-being of its workforce."

Non-Commercialization Policy

DepEd prohibits commercialization of schools and resources to prevent distortion of market forces. It does not allow institutional endorsement to prevent the impression of private gain.

BUT DepEd is expected to guide and assist teachers in accessing the best HMO plans available without violating this policy.

How Can the Allowance Be Used?

DepEd follows the 3 modes under DBM Budget Circular 2024-6:

• Agency Procurement (7.1.1(i)) – DepEd can hold public bidding for a group HMO plan.
• Individual Opt-In (7.1.2) – Teachers choose their own HMO;
  • DepEd remits allowance to teachers via payroll disbursement, and/or
  • DepEd faciliates teachers enrollment and payment to group HMO plan.
• Reimbursement (7.1.3) – Only for GIDA areas or when HMO is unavailable or enrollment is denied.

NOT ALLOWED

• Procurement through unions/coops (7.1.1(ii)).
• cash-out or allowance conversion.

Non-Procurement Assistance

• DBM Circular 2024-6 encourages non-procurement options like the opt-in model, where employees choose their HMO and DepEd simply facilitates information and remittance.
• DepEd can:
  • Hold orientations to explain HMO options (neutral, factual – no sales pitches).
  • Facilitate collective enrollment lists at division level to help teachers sign up easily.
  • Negotiate better group rates by presenting aggregated enrollment numbers without doing formal bidding.

Why this matters:

• Teachers who enroll individually often get less coverage at higher premiums.
• Facilitated “group enrollment” (even through opt-in) unlocks “group HMO rates” – meaning better benefits and lower costs for teachers.

COA & Accounting Compliance

According to the Government Accounting Manual (GAM), all transactions must be recorded and reported properly.

COA Notification:

Division Offices should

• inform their COA Resident Auditor if using non-procurement facilitation (e.g. opt-in model):
• clarify that no procurement contract is being made; only facilitation and remittance.
• Attach DBM Circular 2024-6 as legal basis
• This ensures a clear audit trail and avoids future disallowances

Why This Order Matters

• Reinforces DepEd’s commitment to teacher well-being.
• Ensures the ₱7,000 allowance is spent only on HMO-type coverage.
• Helps teachers access stronger benefits by leveraging group HMO pricing instead of leaving them with more expensive, weaker individual plans.
• Keeps the process fully compliant with GAM rules, DBM guidelines, and COA requirements.

Summary

DepEd Order 16, s. 2025 is the roadmap for teachers’ ₱7,000 medical allowance:

• HMO-only use, no cash-out
• Non-procurement facilitation encouraged
• Group enrollment = better benefits & lower costs
• Strict compliance with DBM rules, GAM, and COA oversight.