8th Pay Commission to Review Fixed Medical Allowance Hike for Central Government Pensioners

8th Pay Commission to Review Fixed Medical Allowance Hike for Central Government Pensioners

New Delhi: The demand to increase the Fixed Medical Allowance (FMA) for Central Government pensioners has now officially been placed before the 8th Central Pay Commission (8th CPC).

Pensioners’ associations and employee unions have been seeking an increase in the monthly allowance from the current ₹1,000 to ₹3,000, citing the sharp rise in healthcare and medicine costs.

While the issue has received support from the Parliamentary Standing Committee, the Government has decided that any revision in the allowance will be considered as part of the 8th Pay Commission’s recommendations.

What Is Fixed Medical Allowance (FMA)?

Fixed Medical Allowance is paid to Central Government pensioners who reside in areas not covered under the Central Government Health Scheme (CGHS). The allowance is meant to help pensioners meet routine outpatient medical expenses.

At present, eligible pensioners receive ₹1,000 per month as Fixed Medical Allowance.

Pensioners Seek Increase to ₹3,000

Employee federations and pensioners’ organizations have argued that the existing allowance is no longer sufficient because of increasing medical consultation charges, diagnostic tests, and medicine prices.

They have demanded that the monthly FMA be raised to ₹3,000, stating that the current amount was fixed several years ago and does not reflect present-day healthcare expenses.

Issue Referred to the 8th Pay Commission

During recent meetings between the Government and employee representatives, it was decided that the proposal for enhancing the Fixed Medical Allowance would be examined by the 8th Central Pay Commission instead of being approved separately.

According to the Government, since the existing FMA was fixed based on the recommendations of the 7th Pay Commission, any further revision should also be considered by the next Pay Commission.

Employee Side Expresses Disappointment

Representatives of the Staff Side in the National Council (JCM) expressed disappointment over the decision to defer the issue.

They stated that discussions on increasing the allowance had progressed significantly in earlier meetings and that pensioners had expected an early revision without waiting for the 8th CPC.

Employee unions also pointed out that the proposal had already received support from the Parliamentary Standing Committee.

Government’s Stand

The Government has maintained that all major revisions relating to pay, allowances, pensions, and retirement benefits should be examined together by the 8th Pay Commission.

Officials have indicated that the Commission has the authority to recommend changes to various allowances, including the Fixed Medical Allowance, after considering financial implications and the needs of pensioners.

Timeline of the FMA Proposal

March 2025

During the 34th SCOVA Meeting, the Department of Expenditure informed stakeholders that the proposal to enhance the Fixed Medical Allowance would be referred to the 8th Pay Commission.

November 2025

The Terms of Reference (ToR) of the 8th Pay Commission authorized the Commission to examine pay, allowances, pensions, and other service benefits for Central Government employees and pensioners.

May 2026

At the 49th National Council (JCM) Meeting, the Cabinet Secretary advised employee associations to pursue the demand for increasing FMA before the 8th Pay Commission.

CGHS Expansion Continues

Although no immediate increase in the Fixed Medical Allowance has been approved, the Government has continued expanding healthcare facilities for pensioners.

The Ministry of Health and Family Welfare has announced the opening of additional CGHS Wellness Centres and expanded cashless treatment facilities through agreements with AIIMS and other Institutes of National Importance.

What Pensioners Can Expect

The 8th Central Pay Commission is currently collecting data and examining memoranda submitted by employee organizations and pensioners’ associations.

The Commission will review demands related to:

• Fixed Medical Allowance
• Pension benefits
• Dearness Relief (DR)
• Other retirement-related allowances

Its recommendations will be submitted to the Central Government after completing consultations and data analysis.

Conclusion

The long-pending proposal to increase the Fixed Medical Allowance from ₹1,000 to ₹3,000 will now be decided by the 8th Central Pay Commission. While pensioners will not receive an immediate increase, the issue has officially become part of the Commission’s agenda.

Pensioners’ organizations are expected to strongly present their case before the Commission in the hope of securing higher medical support in the next pay revision.