8th Pay Commission: Central Govt Employees & Pensioners Likely To Receive Higher Medical Allowance

A major concern affecting central government employees and pensioners has been raised ahead of the 8th Pay Commission’s recommendations. Employee unions are demanding a substantial increase in the fixed medical allowance, particularly for those residing in areas where Central Government Health Scheme (CGHS) facilities are unavailable. At present, such employees receive just Rs 1,000 per month for medical expenses. Unions have urged the Commission to raise this amount to Rs 20,000, arguing that soaring healthcare costs have made the existing allowance grossly inadequate.

Demand For Higher Medical Allowance

The Central Government Health Scheme (CGHS) provides direct hospital access to employees and pensioners in notified cities. However, CGHS facilities are not available in many rural areas, small towns and remote locations. Those living in these regions receive a fixed medical allowance of Rs 1,000 per month instead of access to CGHS services.

Employee unions argue that this amount no longer reflects present-day medical realities. Routine tests, medicines, scans and hospital charges have become significantly more expensive. Pensioners in smaller towns, who often depend on private hospitals, are said to be facing particular hardship due to rising healthcare costs.

According to reports, unions and representatives of the National Council-Joint Consultative Machinery (NC-JCM) have formally presented this demand before the 8th Pay Commission.

Part Of Broader Pay Commission Demands

The proposed increase in medical allowance forms part of a wider charter of demands submitted to the Commission. Unions have also sought a rise in the fitment factor to 3.25 times and an increase in annual increments from 3 per cent to 7 per cent. They view revision of the medical allowance as essential for employee welfare.

Around one crore central government employees and pensioners could benefit if the proposal is accepted. Many retirees settled in villages and smaller towns currently struggle to manage treatment costs within the Rs 1,000 limit.

The 8th Pay Commission, chaired by Justice Ranjana Prakash Desai, has begun its work and is operating from its office at Chandralok Bhavan. While discussions are ongoing and memoranda are being prepared, no final decision has yet been announced by either the government or the Commission.

Employees and pensioners remain hopeful that adequate health security will be prioritised in the Commission’s final recommendations.

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