A teachers’ group welcomed the Department of Education’s (DepEd) amendment to its directive on the release of the P7,000 medical allowance, giving teachers the option to decide how they want to receive the benefit.

The change, contained in a memorandum dated 20 August, came a day after the Teachers’ Dignity Coalition (TDC) met with Budget Secretary Amenah Pangandaman.

One of the key alternatives introduced is cash through payroll disbursement, patterned after the so-called Vigan-Romblon model, where teachers receive the allowance directly and submit proof of medical expenses later.

DepEd also reiterated that the allowance must be released no later than 31 August, in line with the agreement made during the 19 August dialogue.

“This is a positive step and we appreciate that DepEd has listened to the voice of teachers. It shows that when teachers stand united and raise our concerns, the government can act in our favor,” TDC chairperson Benjo Basas said.

“At the same time, we assert with equal clarity that the allowance must be released in a way that truly benefits teachers—without delays, without undue conditions, without complications,” added Basas, a Caloocan City teacher.

The TDC earlier raised concerns over delays in the release of the allowance for fiscal year 2025, with only four months left before year-end. It also flagged the difficulties faced by Schools Division Offices in implementing the Health Maintenance Organization scheme through group availment, warning of the potential proliferation of “fly-by-night” HMOs looking to profit from the P7,000 allocation per employee.

Basas, who led the group in pushing for the dialogues, said the allowance must directly benefit teachers rather than serve as an opportunity for intermediaries. He urged DepEd to begin preparing the release for fiscal year 2026, stressing that if the HMO arrangement will again be pursued, it must be the most advantageous to teachers, ensuring broad accessibility and coverage of medical needs.

The teachers’ leader also challenged the government to reform and expand PhilHealth to make it more responsive to the needs of government workers “without any additional cost to them.”