Increase in Fixed Medical Allowance: Inclusion in the 8th Pay Commission Terms of Reference

The 34th meeting of the Standing Committee of Voluntary Agencies (SCOVA) took place on March 11, 2025, under the chairmanship of the Hon’ble Minister of State for Personnel, Public Grievances, and Pensions (MOS(PP)) at Vigyan Bhawan, New Delhi. Among the significant issues discussed was the increase in the Fixed Medical Allowance (FMA), which is crucial for pensioners facing rising healthcare costs.

Background on Fixed Medical Allowance

Fixed Medical Allowance is an essential component of the financial support provided to pensioners, aimed at helping them cover medical expenses. As healthcare costs continue to escalate, the adequacy of this allowance has come under scrutiny. Currently, the FMA is set at a rate that many stakeholders believe is insufficient to meet the rising demands of medical care.

Key Points from the SCOVA Meeting

During the meeting, it was highlighted that the current FMA is inadequate. The Department of Pension & Pensioners’ Welfare (DoP&PW) referenced recommendations from the Parliamentary Standing Committee, which advocated for an increase in the FMA to address the financial burden faced by pensioners.

Decision on FMA Increase:

• The committee decided to increase the Fixed Medical Allowance to Rs. 3000 per month. This increase reflects an understanding of the financial pressures exerted by escalating medical expenses on retired personnel.
• The Department of Expenditure indicated that this enhancement would be integrated into the Terms of Reference (TOR) of the 8th Pay Commission, ensuring that it gains formal recognition and consideration in future pay structures.

Implications of the Increase

The decision to increase the FMA has several implications:

1. Financial Relief for Pensioners: The hike to Rs. 3000 per month will provide much-needed financial relief to pensioners, enabling them to manage their medical expenses more effectively.
2. Recognition of Healthcare Costs: This decision acknowledges the rising cost of healthcare and the need for pension allowances to keep pace with inflation and increased medical service rates.
3. Future Considerations in the 8th Pay Commission: By including this issue in the TOR for the 8th Pay Commission, there is a commitment to evaluate and potentially adjust pension and medical allowances in a systematic manner, ensuring that pensioners are not left behind as costs continue to rise.

The inclusion of the increase in Fixed Medical Allowance in the Terms of Reference for the 8th Pay Commission marks a significant step towards addressing the financial challenges faced by pensioners in India. With the new allowance set to take effect from January 1, 2026, it reflects a proactive approach by the government to safeguard the welfare of its retired personnel amidst growing healthcare demands. The decision is expected to positively impact the lives of many retirees, ensuring they receive the necessary support for their medical needs.

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No. 2/10/2017-Estt. (Pay-II)
Government of India
Ministry of Personnel, Public Grievance & Pensions
Department of Personnel & Training

North Block, New Delhi
Dated the 04th June, 2025

OFFICE MEMORANDUM

Subject: Revision of the rates of Central Secretariat (Deputation on Tenure) Allowance to officers of All India Services and Organized Group ‘A’ Central Services on their appointment as Under Secretary, Deputy Secretary and Director in the Central Secretariat under the Central Staffing Scheme.

The undersigned is directed to refer to this department’s Office Memorandum of even no dated 24.04.2018 conveying the revised rates of Central Secretariat (Deputation on Tenure) Allowance (CDTA) admissible to the officers of All India Services and Organized Group A’ Central Services on their appointment as Under Secretary, Deputy Secretary and Director in the Central Secretariat under the Central Staffing Scheme.

2. It was indicated in para 1 (c) of the OM that during their tenure as Under Secretary/ Deputy Secretary/ Director, the officers will be paid CDTA at the rate of 10% of their basic pay, subject to a ceiling of Rs. 9000;

3. In consideration of references received from various Ministries/Departments and after due consultation with Department of Expenditure it has been decided that the ceiling will further rise by 25 percent each time Dearness Allowance increases by 50 percent.

4. This issues with the concurrence of the Department of Expenditure conveyed vide their ID note no. 916/2024-E. 11(B) dated 29.04.2025. All others terms and conditions regulating the CDTA, as contained in this Department’s OM No. 2!10/2017-Estt. (Pay-Il) dated 24.04.2018 remain unchanged.

(Vikas)
Under Secretary to the Government India

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Explore the latest updates on the implementation of the 7th Central Pay Commission’s Dress Allowance guidelines. Learn about the revised rules, eligibility, and benefits for government employees.

No. 19051/1/2017-E.1V
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated 24th March, 2025

OFFICE MEMORANDUM

Subject:- Implementation of the recommendations of the 7th Central Pay Commission – Dress Allowance – Modification in the guidelines regarding

The undersigned is directed to refer to this Department’s O.M. No. 19050/1/2017-E.IV dated 02.08.2017 regarding admissibility of Dress Allowance to various categories of Central Government employees.

2. Several references are being received in this Department seeking clarification relating to para “4” of the said OM which provides that the amount of Dress Allowance shall be credited to the salary of employees directly once a year in the month of July.

3. The matter has been considered in this Department and in partial modification of the said OM dated 02.08.2017, the following is clarified:-

i. If a Central Govt. employee has joined service after Dress Allowance is paid in the month of July as per the instructions mentioned in para 4 of the said OM dated 02.08.2017, Dress Allowance would be given on proportionate basis.

ii. Proportionate payment of Dress Allowance would be given by using the following formula:-

= Amount + 12 x No. of months (from the month of joining government service to the month Of june of the following year)

4. Other terms & conditions governing grant of Dress Allowance would be the same as prescribed in the said OM dated 02.08.2017.

5. In so far as persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the Comptroller & Auditor General of India, as mandated under Article 148(5) of the Constitution of India.

6. This is issued with the approval of the Secretary (Expenditure).

Hindi version is attached.

Sd/-
(Samir Kumar Das)
Deputy Secretary to the Govt. of India

To,

Copy : O/o C&AG, UPSC etc. as per standard endorsement list.

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No. 19030/1/2017-E.IV
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated 30th August, 2023

OFFICE MEMORANDUM

Subject: Admissibility to travel by Vande Bharat Express and Humsafar Express Trains on Official Tour.

The undersigned is directed to refer to this Department’s OM No. 19030/1/2017-E.IV dated 13.07.2017 wherein travel entitlements for journey on Tour/ Training/ Transfer/ Retirement have been prescribed.

2. The matter regarding admissibility of travel by Vande Bharat Express and Humsafar Express Trains on official Tour has been considered in this Department. It has been decided to allow Central Govt. employees to travel by Vande Bharat Express and Humsafar Express Trains for journey on Tour/ Training/ Transfer/ Retirement, in addition to the Trains as mentioned in para 2 A (ii) of this Department’s OM of even number dated 13.07.2017 & OM dated 12.09.2022. Travel entitlement in Vande Bharat Express and Humsafar Express Trains would be same as that of Shatabdi Trains and Rajdhani Trains respectively as mentioned in para 2 A (ii) of this Department’s OM of even number dated 13.07.2017.

3. In so far as the persons serving in the Indian Audit & Accounts Department are concerned, these orders are issued in consultation with the Comptroller & Auditor General of India, as mandated under Article 148(5) of the Constitution of India.

4.This is issued with the approval of Finance Secretary & Secretary (Expenditure).

Hindi version is attached.

(Ram Gopal)
Deputy Secretary (EG)

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Office of the Controller of Defence Accounts Guwahati
Udayan Vihar, Guwahati – 781171

CIRCULAR

No : PAY/ORDER /CIRCULAR /VOL-II

Date : 12.07.2023

To

l. Area Accounts Office
Bivar Regad,
Shillong -793001

2. All LAOs

Subject: Clarification regarding admissibility of Night Duty Allowance to FED re-designated to Station Officer

Please find enclosed a copy of PCDA(WC) Chandigarh letter No. Pay/II/ Tech/94 dated 23.06.2023, which is self explanatory.

It 1s therefore requested that practice followed/ adopted as regards payment of Night Duty Allowance to Station Officers (erstwhile FED ‘B’) may be intimated at the earliest for onward submission of the same to PCDA(WC) Chandigarh.

Further, a list of designation/category/level of employees, who were made eligible by the MoD for receipt of Night Duty Allowance under your audit jurisdiction, may be obtained and provided to this office for further necessary action please.

Sr. Accounts Officer (Pay-Tech)

PRINCIPAL CONTROLLER OF DEFENCE ACCOUNTS
(WESTERN COMMAND) CHANDIGARH

No. Pay/II/ Tech/94

Dated: 23.06.2023

To ,

Guwahati BDAIHEO

Subject : Clarification regarding admissibility of Night Duty Allowance to FED re-designated to Station Officer.

Night Duty Allowance was admissible to the Fire Fighting staff as per list of categories identified for grant of NDA in accordance to the MoD OM dated 15.03.1990 (copy enclosed). It is pertinent to mention here that among the list of staff identified FED ‘B’ Fire Supervisors have been re-designated to the post of Station Officer with a revised pay level Gand GP 2800 / –

Further, as per DoPT OM No. A-27016/02/ 2017-Estt (AL) dated 13.07.2020. the ceiling of Basic Pay for entitlement of NDA has been upgraded to Rs.43600/- per month.

Since, the list of categories has not been revised w.r.t admissibility of NDA to the Fire Fighting Staff who have been re-designated to the post of Station Officer, it is difficult to conclude whether Station Officer is eligible to get NDA or not.

In view of the above, your views and practice followed in r/o grant of Night Duty Allowance to fire fighting staff ( FED ‘B’) re-designated to Station Officer may please be furnished to this office within 15 days for our better appreciation and enabling this office for further necessary action on the subject matter.

Please accord priority.

PCDA

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RBE No. 77/2023

भारत सरकार/ GOVERNMENT OF INDIA
रेल मंत्रालय / MINISTRY OF RAILWAYS
(रेलवे बोर्ड/ RAILWAY BOARD)

No. E(MPP)/ 2023/3/16

New Delhi, dt. 08.06.2023

The Director General,
IRISET, Secunderabad.

Sub: Admissibility of training allowance to teaching faculty of Centre of Excellence(CoE) for Modern Signalling (Kavach), IRISET, Secunderabad.

Ref: IRISET’s letter No. IRISET/ CoE/Kavach/ Misc dtd 18.04.2023.

The proposal of IRISET regarding admissibility of training allowance @ 24% for Centre of Excellence (CoE) for Modern Signalling (Kavach) at par with CTIs faculty has been considered and the competent authority in Railway Board has agreed that the CoE, being a part of IRISET, its teaching faculty are eligible for training allowance @24% of basic pay subject to Board’s instructions on the subject matter issued from time to time.

2. The said allowance will be admissible to the teaching faculty only, who are involved in imparting training on regular basis and such posts need to be identified.

3. It must be ensured that instructions as per Board’s letter No. E(MPP) /20 13/ 3/18 dated 20.3.2015 (RBE no. 24/2015) regarding admissibility of allowance in each individual case by a committee constituted as per RBE No. 127/2001 should be followed. Also instructions as per Board’s letter no. E(MPP)99/19/1Pt dated 11.3.2003 (RBE no. 49/2003) and letter no. E(MPP)2012/3/28 dt. 06.10.2017 must be followed.

4. This issues with the concurrence of Finance Directorate of the Ministry of Railways.

5. Please acknowledge receipt.

(A. K. Das)
Joint Director /E(MPP)

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BHARAT PENSIONERS’ SAMAJ
(All India Federation of Pensioner’s Association)
(Registered No. 2023 of 1962-63)

No.BPS/ BDPA (I)/ Fixed-Med/ Enhancement/ 2023

Dated 26th April, 2023

To:

Hon’ble Smt. Nirmala Sitaraman,
Finance Minister, Govt. of India,
15, Safdarjung Road,
New Delhi

Sub: A request to expedite decision for enhancing Fixed Medical Allowance from Rs. 1000/- Per Month to Rs. 3000/- PM.

1. That the Parliamentary committee on Pensioner’s Grievance has submitted its 110th report on 10.12.2021; wherein it has been recommended the enhancement vide para3.14, sub Para (iii) “Fixed Medical Allowance may be enhanced from Rs 1000 to Rs 3000 per month since most pensioners are suffering from different diseases at old age and are unable to manage with meager pension as CGHS hospital is not available in every town”.

2. As per Para 2.21 of 120th Action Taken Report, “DoP&PW has taken-up the issue of enhancement of FMA with the Finance Ministry.

3. Now, as we understand the GOI Min of Personnel, Public Grievance& Pensions, DoP&PW F. No. 4/34/2017-P&PW (D dated 31-01-2018 has forwarded the said proposal to your Minister for further decision in the matter.

4. That GOI Min of Personnel, Public Grievance& Pensions, DoP&PW F. No. 4/34/2017-P&PW (D) dated 31-01-2018 had increased it from Rs.500/- to Rs.1000/- per month in the year 2018 to meet the day-to-day expenses on medicines for those retired Central Govt. pensioners who are residing beyond 2.5 KMs from any CGHS dispensary or any other health unit corresponding Health unit administered by other Ministries/ Departments. In turn BSNL Corporate Office had also implemented the same for the BSNL Pensioners.

5. For your information, EPFO pensioners get Rs. 2000/- PM since 01.03.2013.

6. Since 2018 till date the FMA is paid per month on the above rates whereas it is established fact that during these six years price index is increased resulting in to rise in prices of medicines which are required by the age pensioners to maintain up their health.

In light of above factual reasons, we request you to kindly expedite decision to enhance Fixed Medical Allowance from Rs 1000 to Rs 3000 per month since most pensioners are suffering from different diseases at old age and are unable to manage with paltry sum of Rs. 1000/- per month.

Your ministry will be aware of the fact that now a day’s our Hon’ble Prime Minister Shri Narendrabhai is also reiterating the stand of govt. showing its concern for Senior citizens. Your sympathetic consideration of the issue will be a boon to all the Pensioners fraternity.

We therefore look forward to your august office for early sympathetic decision in the matter.

With Regards,

Yours Sincerely,

(D.D. MISTRY)
Secretary BSNL/PSU

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Rate of Interest on House Building Advance (HBA) for Central Government Employees during 01.04.2023 till 31.03.2024: MoHUA OM dated 27.03.2023

I-17015/2(2)/2022/H.III/5
Government of India
Ministry of Housing & Urban Affairs
(Housing III Section)

Nirman Bhawan, New Delhi
Dated 27.03.2023

OFFICE MEMORANDUM

Subject: Applicable Rate of Interest on House Building Advance (HBA) for Central Government Employees during 01.04.2023 till 31.03.2024.

In pursuance to revision of interest rate by Ministry of Finance, Dept of Economic Affairs vide OM 5(2)-B(PD) /2023 dated 20.03.2023, the rate of interest applicable on House Building Advance sanctioned to Central Government Employees during FY 2023-24 (i.e. 1st April, 2023 to 31st March, 2024) will be 7.5% till further orders.

2. This issues with the approval of Competent Authority.

(Amita Gupta)
Under Secretary to the Govt. of India

To

All the Central Government Ministries/ Departments

Copy for information to:

1. PS to Hon’ble Minister, Ministry of Finance, North Block, New Delhi.
2. PS to Hon’ble Minister, Housing & Urban Affairs Minister, Nirman Bhawan, New Delhi.
3. Copy to NIC to upload on website of Ministry of Housing & Urban Affairs.
4. Copy to IT Cell for uploading in E-Office.

Download 7.5℅ interest rate on HBA for Central Government Employees 2024 PDF

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No.W-02/0015/2021 -DPE (WC)-GL-V/2023
Government of India
Ministry of Finance
Department of Public Enterprises
Public Enterprises Bhawan,

Block No.14, CGO Complex,
Lodhi Road, New Delhi-110003.
Dated, the 16th March, 2023

OFFICE MEMORANDUM

Subject:- Double/Additional Transport Allowance out of the 50%/35% ceiling relating to Divyangjan – Date of effect of Implementation.

In continuation of this Department’s O.M. of even no. dated 21.02.2022 on the subject cited above, the undersigned is directed to state that the effective date of implementation of the said O.M. is 21 02.2022.

2. All administrative Ministries/Departments of the Government of India are requested to bring the above to the notice of CPSEs under their administrative control, for necessary action.

(Naresh Kumar)
Under Secretary

No.W-02/0015/2021 -DPE(WC)
Government of India
Ministry of Finance
Department of Public Enterprises

Public Enterprises Bhawan,
Block No.14, CGO Complex,
Lodhi Road, New Delhi-110003.
Dated: the 21st February 2022

OFFICE MEMORANDUM

Subject: Keeping double/additional Transport Allowance out of the 50% /35% ceiling relating to Divyangjan – reg

The undersigned is directed to refer to the order of the office of Chief Commissioner for Persons with Disabilities under the Ministry of Social, Justice and Empowerment, in the matter of Sh. K. Shiva Reddy & ors., DM finance, a visually impaired employee case No. 11927/1024/2020 dated 12.02.2021 recommending to amend DPE OM no. W-02/0030/2018-DPE (WC) dated 10.07.2018, so as to include Additional Transport Allowance / Double Transport Allowance in the list of perks / allowance / benefits exempted from upper ceiling limit.

2. DPE OM dated 03.08.2017 authorizes to the Board of Director to decide on perks and allowances and states that all allowances are within the ceiling of 35% of Basic Pay except the allowances mentioned therein.

3. The matter has been examined in consultation with the DoE and it has been decided as under:

• 1) The PwD employees in terms of DoE OM dated 07.07.2017, may be paid double the transport allowance to facilitate their accessibility to & from the office.
• 2) Additional amount of Transport allowance payable to PwD employees in terms of DoE OM dated 07.07.2017, is to be kept outside the overall ceiling of cafeteria approach.
• 4. Accordingly, Para 3(vi) of DPE OMs dated 10.07.2018 and Para 9 of DPE OM dated 03.08.2017 stand amended.
• 5. CPSEs are advised to fix or review amount of Transport Allowance to be reasonable within set of allowances under the cafeteria approach in consultation with their concerned Administrative Ministry/ Department for the purpose of calculation of double/ additional Transport Allowance admissible as above, keeping in view the terms of DoE OM dated 07.07.2017 and DPE guidelines.
• 6. All administrative Ministries/Departments of the Government of India are requested to bring the foregoing to the notice of the CPSEs under their administrative control for necessary action at their end.
• 7 This issues with the approval of competent authority.

sd/-
(Samsul Haque)
Under Secretary

Download the Finmin Transport Order (21.2.2023) in PDF

Grant of Transport Allowance at double the normal rates to persons with disabilities employed in Railways

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Dopt Order Dated 30.11.2022 Regarding Allowances Applicable to Central Government Employees

Children Education Allowance, Risk Allowance, Night Duty Allowance, Over Time Allowance, Special Allowance and Special Allowance for Child Care for Women with Disabilities are payable to Central Government Employees

No.DOPT- 1669789084378
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel and Training
ESTT. (Estt. Allowance)

(Dated 30 November, 2022 )

OFFICE MEMORANDUM

Allowances

Department of Personnel & Training has issued various instructions from time to time on various Allowances applicable to Central Government Employees. The essence of these instructions has been summarized in the following paras for guidance and better understanding.

1. Children Education Allowance (CEA)

Consequent upon the decisions taken by Government to implement the recommendation of 7th CPC, this department has issued an OM No. A-27012/01/2017-Estt.(AL) dated 17.07.2018. The salient features of CEA are:

• (i) CEA/Hostel Subsidy can be claimed only for the two eldest surviving children.
• (ii) The amount of CEA will be Rs. 2250/- per month per child.
• (iii) The amount of hostel subsidy is Rs. 6750/- per month.
• (iv) The reimbursement of CEA for Divyang Children of Government servant shall be payable at double the normal rate of CEA i.e. Rs. 4500/- per month.
• (v) The rate of CEA would be raised by 25% every time the DA on the revised pay structure goes up by 50%.
• (vi) The CEA and Hostel subsidy is admissible in respect of children studying from two class before class one to 12th standard.

Link: Download DoPT CEA PDF

2. Risk Allowance

• (i) As per decision taken by the Government on the recommendation of 7th CPC rates of Risk Allowance were revised.
• (ii) Risk Allowance is presently given to Central Government employees engaged in hazardous duties or whose work will have a deleterious effect on health over a period of time.
• (iii) The Risk Allowance will not be treated as “Pay” for any purpose.

Link: Download DoPT RiskAllowances PDF

3. Night Duty Allowance (NDA)

Consequent upon the decision taken by Government on the recommendations made by 7th CPC on the subject following guidelines has been issued:

• (i) Night duty will be defined as duty performed between 22:00 hours and 6:00 hours.
• (ii) A uniform weightage of 10 minutes shall be given for every hour of night duty performed.
• (iii) The ceiling of basic pay for entitlement of NDA shall be Rs 43600/- per month.
• (iv) The hourly rate of NDA equal to [(BP+DA)/200] will be paid and the basic pay and DA for the calculation of NDA rates shall be the basic pay and DA prevalent as per 7th CPC.
• (v) The amount of NDA will be worked out separately for each employee depending upon the basic pay the concerned employee is drawing on the date of performing the night duty.

Link: Download DoPT Night Duty Allowance PDF

4. Over Time Allowance (OTA)

Consequent upon the recommendations of 7th CPC as accepted by the Government, it has been decided that:

• (i) “Ministries/Departments to prepare a list of those staff coming under the category of ‘Operational Staff’. Rates of Overtime Allowance not to be revised upwards”.
• (ii) The following definition has been used to define Operational Staff: “All non-ministerial, non-gazetted Central Government Servants directly involved in smooth operation of the office including those tasked with operation of some electrical or mechanical equipment.”
• (iii) The concerned Administration Wing of the Ministries/ Departments will prepare a list of operational staff with full justification based on the above parameters for inclusion of a particular category of staff in the list of operational staff with the approval of JS(Admn.) and Financial Adviser of the concerned Ministry/ Department.
• (iv) The grant of OTA may be linked to biometric attendance.

Link: Download Dopt Over Time Allowance PDF

5. Special Allowance Payable to Parliament Assistants

• (i) As per the decision taken by the Government on 7th CPC recommendations to enhance the rates of Special Allowance payable to those wholly engaged in Parliament work during Parliament session by 50% from the existing levels of Rs. 1500/- and Rs. 1200/- payable to Assistants and UDCs respectively to the level of Rs. 2250/- and Rs 1800/-.
• (ii) The allowance will be admissible at full rates for every calendar month in which the Parliament is in session for at least 15 days in that month. For month with shorter period, the allowance will be admissible half the rates prescribed for the full month.
• (iii) No OTA shall be paid to Parliament Assistants for the calendar months in which the Parliament is in session.

Link: Download DoPT Special Allowance Payable to Parliament Assistants PDF

6. Special Allowance for Child Care for Women with Disabilities

• (i) For providing extra benefits to women employees with disabilities especially when they have young children and children with disabilities, it has been decided that women with disabilities shall be paid Rs. 3000/- per month on Special Allowance for child care. The allowance shall be payable from the time of the child’s birth till the child is two years old.
• (ii) The above limit would be raised by 25% every time the Dearness Allowance on the revised pay structure goes up by 50%.

Link: Download DoPT Special Allowance for Child Care for Women with Disabilities PDF

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