In a recent development that could benefit lakhs of retired government employees, the central government is actively considering a substantial revision to the Fixed Medical Allowance (FMA) for pensioners. This proposal gained momentum during the 34th meeting of the Standing Committee of Voluntary Agencies (SCOVA), which was chaired by Union Minister of State Dr. Jitendra Singh.
The meeting addressed several long-standing concerns of pensioners, with healthcare-related support emerging as a key focus.
Rising Healthcare Costs Push for FMA Hike
During discussions, employee representatives underscored the inadequacy of the current FMA of ₹1,000 per month—an amount that has remained unchanged since 2014. They pointed out that in the face of surging medical expenses, including consultation fees and the cost of medicines, the existing allowance fails to meet even basic healthcare needs.
Responding to these concerns, it was proposed that the Fixed Medical Allowance be increased to ₹3,000 per month, tripling the current amount. This suggestion has been recommended for inclusion in the Terms of Reference (ToR) of the 8th Pay Commission.
What Is the Fixed Medical Allowance?
The Fixed Medical Allowance is a monthly financial aid extended to pensioners who are not covered under regular government healthcare schemes like CGHS (Central Government Health Scheme). According to RK Verma, General Secretary of the Joint Employees Council, the FMA is especially crucial for retirees residing in rural or remote regions, where government healthcare infrastructure is sparse or non-existent.
Given that the last revision happened over a decade ago, the proposed increase is seen as a long-overdue adjustment in line with inflation and the rising cost of private healthcare services.
Backing from Parliamentary Panel and Finance Department
Adding weight to the proposal, the Department of Pension and Pensioners’ Welfare (DoP&PW) referred to earlier recommendations made by the Standing Committee of Parliament. This committee had already advocated a 3x increase in the Fixed Medical Allowance, citing the need for better support to senior citizens managing their own healthcare.
Encouragingly, the Finance Department has reportedly expressed agreement with the recommendation, boosting the chances of its inclusion in the 8th Pay Commission’s final framework.
What Lies Ahead?
If approved, the revised allowance could come as a major relief for pensioners, helping them manage out-of-pocket healthcare expenses more comfortably. The official rollout, however, will depend on the final recommendations of the 8th Pay Commission, which is expected to take shape in the coming months.
Until then, pensioners and employee associations remain hopeful that the government will acknowledge their concerns and act in favor of a much-needed financial update.