Economy

8th Pay Commission: Rs 1,000 to Rs 20,000 Medical Allowance, 3.25 Fitment Demand

8th Pay Commission Office Set Up at Chandralok Building as Unions Push Medical, Pension and Leave Reforms

Simran

The 8th Pay Commission has once again come into focus. Central Govt Employees and pensioners are closely watching every update. A major demand now stands at the centre of discussions. Employee unions want a sharp increase in the Fixed Medical Allowance for staff living in Non-CGHS areas.

Right now, the Fixed Medical Allowance is Rs. 1,000 per month. Unions say this amount does not match today’s medical expenses. In many towns and rural areas, CGHS services are not available. Employees and pensioners in these places depend on private hospitals. Treatment costs have gone up sharply. Because of this, unions have proposed raising the allowance to Rs. 20,000 per month.

Demand for Higher Medical Allowance

The issue came up during recent meetings of the National Council Staff Side Drafting Committee. The meeting started on February 25 in Delhi. The committee is preparing a common list of demands for nearly one crore Central Govt Employees and pensioners. The increase in Fixed Medical Allowance is one of the main demands.

The 8th Pay Commission has now begun regular work. The office has been set up in the Chandralok Building on Janpath. Justice Ranjana Prakash Desai is heading the Commission. Employee groups say several key issues were not clearly included in the Terms of Reference. Because of this, they are preparing a detailed memorandum.

Fitment Factor and Salary Hike

The Fitment Factor is another major point in the discussion. Unions are asking for a 3.25 fitment factor. They believe this will raise basic pay in a proper way. There is also a demand to increase the annual increment from 3% to 7%. Some groups have suggested at least a 5% yearly hike.

Other demands include raising the leave encashment limit from 300 days to 400 days. There is also a request to allow Leave Travel Concession in cash form. Pension issues have once again become a hot topic. Many unions are pressing for the return of the Old Pension Scheme instead of the New Pension Scheme.

Other Key Proposals Under Review

Another proposal suggests increasing the family unit count from three to five for salary calculation. This change may include dependent parents and could affect the final basic salary.

No final decision has been announced yet. The proposal to raise the Fixed Medical Allowance to Rs. 20,000 remains under review. The government will consider financial impact before taking a call.

Central Govt Employees and pensioners are now waiting for clear recommendations from the 8th Pay Commission. The final report will decide whether these major demands turn into reality.

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