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8th Pay Commission: Employee Unions Demand Major Increase in Medical Allowance

8th Pay Commission: Employee unions have demanded raising the Fixed Medical Allowance for central government employees and pensioners

By: Nisha Srivastava
Last Updated: March 7, 2026 14:07:17 IST

8th Pay Commission: As the discussion on the upcoming 8th Pay Commission is gaining momentum, the unions have been raising some significant issues with regard to the salaries, pensions, and other allowances for the central government employees and the pensioners. One of the major issues raised by the employees is the significant increase in the Fixed Medical Allowance (FMA) for those employees living in areas where the Central Government Health Scheme (CGHS) is not available.

8th Pay Commission: Proposal to Raise Fixed Medical Allowance to Rs 20,000

Currently, the Central Government Pensioners who do not have access to the CGHS scheme are entitled to a fixed medical allowance of Rs 1000 per month. Employee organisations have proposed a huge increase in the amount of fixed medical allowance.

The organisations have proposed that the fixed medical allowance for employees and pensioners residing in areas where the CGHS scheme is not available should be raised to Rs 20,000 per month. These proposals are being discussed as a part of the recommendations being prepared by the unions for the 8th Pay Commission.

8th Pay Commission: Why Employee Unions Are Seeking a Higher Medical Allowance

As per the employees, the current amount is not enough to cover the medical bills. The employees claim that the rise in medical bills and health inflation has made it really tough for the employees and pensioners to meet their medical bills.

This problem is more critical for those who are not staying in the rural areas. The employees claim that those who are not staying in the CGHS areas have to depend on private hospitals. The employees claim that the government hospitals are not available in the rural areas.

This problem will be greatly helped if the amount is increased. The employees claim that this will be a much-needed relief for the employees.

Other Demands Being Discussed for the 8th Pay Commission

This demand for an increase in the medical allowance is part of the broader list of demands being formulated by the employee representatives.

During the recent meetings, the unions have been deliberating on a joint charter of demands to be taken up before the pay commission. Besides the demand for an increase in the FMA, there are a number of other issues being discussed, which include:

  • Revising the fitment factor for salary restructuring
  • Increasing the annual salary increments
  • Improving the retirement benefits
  • Making changes to the leave rules and travel allowances

8th Pay Commission: Around One Crore Employees and Pensioners May Be Affected

8th Pay Commission is likely to consider the salary and perks of around one crore central government employees and pensioners across the country. It must be noted that all such proposals are still in the stage of deliberation and no such decision has been taken so far. Employees and pensioners are optimistic that the new pay commission will address all the issues related to pay revision, pension, and health benefits.

For now, all eyes are on the upcoming proposals of the pay commission and the government’s response, which will decide if the government accepts the employees’ long-pending demands for the Rs 20,000 medical allowance.

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