In a significant development for millions of retired government employees, the central government is mulling over a proposal to triple the Fixed Medical Allowance (FMA) as part of the upcoming 8th Pay Commission recommendations. The move is expected to provide much-needed relief to pensioners struggling with escalating medical expenses.
Key Push Came from SCOVA Meeting
The idea gained momentum during the 34th meeting of the Standing Committee of Voluntary Agencies (SCOVA), chaired by Union Minister of State Dr. Jitendra Singh. Representatives from various pensioners’ associations raised the issue, pointing out that the current allowance of ₹1,000 per month falls drastically short in covering today’s healthcare costs.
As a result, a proposal was discussed to increase the FMA to ₹3,000 per month, which could be incorporated into the Terms of Reference (ToR) of the 8th Pay Commission.
What Is the Fixed Medical Allowance?
The Fixed Medical Allowance is a monthly sum provided to retired central government employees who do not avail themselves of government-run healthcare facilities, such as CGHS (Central Government Health Scheme). Instead, they bear their medical costs out of pocket. This allowance is especially critical for pensioners residing in rural or remote areas where access to government medical facilities is limited.
According to RK Verma, General Secretary of the Joint Council of Employees, the current FMA of ₹1,000 has remained unchanged since 2014, even though the cost of medicines, consultation fees, and overall healthcare has seen sharp inflation.
Parliamentary Panel Had Already Recommended a Hike
During the SCOVA meeting, the Department of Pension & Pensioners’ Welfare (DoP&PW) cited a recommendation by the Parliamentary Standing Committee, which had earlier advised a threefold increase in the FMA. The Ministry of Finance has reportedly expressed support for the move, further raising hopes that the proposal will be formalized in the 8th Pay Commission’s agenda.
What’s Next?
If approved, the revised allowance would significantly ease the financial burden on pensioners, especially those without access to subsidized healthcare. The 8th Pay Commission is expected to be formed soon, with discussions already underway to finalize its scope and responsibilities.
This potential revision is being viewed not just as a welfare measure, but also as a necessary correction to ensure dignity and healthcare access for those who have spent their lives in public service.