The Office Memorandum dated 13 March 2026 issued by the Government of India, Ministry of Personnel, Public Grievances and Pensions, clarifies the extension of ‘Fixed Medical Allowance’ (FMA) to Central Government employees covered under the Unified Pension Scheme (UPS). The UPS, introduced as an option under the National Pension System (NPS) with effect from 1 April 2025, allows eligible employees to opt into the new scheme. The memorandum confirms that employees opting for UPS will be entitled to FMA on the same terms, conditions, and procedures applicable to NPS employees, as outlined in earlier orders dated 6 December 2023 and 7 February 2025. The decision was made in consultation with the Ministry of Finance and Department of Financial Services, and also with the Comptroller and Auditor General of India where required. The clarification ensures parity in medical allowance benefits across pension schemes and removes ambiguity regarding entitlement for UPS-covered employees.
No. 04/07/2020-P&PW(D) /6455
Government of India
Ministry of Personnel, P.G. and Pensions
Department of Pension and Pensioners’ Welfare
Lok Nayak Bhawan, Khan Market,
New Delhi, the 13th March, 2026
OFFICE MEMORANDUM
Subject: Extension of benefits of ‘Fixed Medical Allowance’ to the Central Government employees covered under the Unified Pension Scheme —reg.
The undersigned is directed to refer to the Ministry of Finance, Department of Financial Service’s Notification No. FS-1/3/2023-PR dated 24.01.2025 regarding introduction of the Unified Pension Scheme (UPS) as an option under NPS for the recruits to the Central Government civil service w.e.f. 01.04.2025 giving one time option to the Central Government employees covered under the National Pension System (NPS) for inclusion under the Unified Pension Scheme.
2. Accordingly, it is clarified that the Central Government employees covered by Unified Pension Scheme as an option under the National Pension System shall be eligible for benefit of ‘Fixed Medical Allowance’ in accordance with this Department’s OM No. 04/07/2020-P&PW(D) dated 06.12.2023. The Central Government employees covered under UPS shall be governed by the same terms, conditions and procedure as are provided in the aforesaid OM dated 06.12.2023 and subsequent amendment dated 07.02.2025 vide which the benefit of Fixed Medical Allowance was extended to Central Government employees covered under NPS.
3. This issues in consultation with of Ministry of Finance, Department of Expenditure vide ID Note No. 18(2)/EV/2021 dated 05.01.2026 and Department of Financial Services vide ID Note No. FX-11/14/2025-PR dated the 03rd March, 2026.
4. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with Comptroller and Auditor General of India, as mandated under Article 148(5) of the Constitution of India.
5. Hindi version will follow.
(Amit Sharma)
Director
To
1. All Central Government Ministries/Departments,
2. Department of Expenditure, Ministry of Finance, Kartavya Bhawan-01, New Delhi.
3. C&AG, Pocket 9, Deen Dayal Upadhyay Marg, New Delhi.
4. Ministry of Railways, Railway Board, for information, New Delhi.
5. Department of Personnel and Training, Kartavya Bhawan-03, New Delhi.
6. Department of Financial Services, Jeevan Deep Building, Parliament Street, New Delhi.
7. CGA, Department of Expenditure, INA, New Delhi.
8. CPAO, Ministry of Finance, Trikoot-II Complex, Bhikaji Cama Place, R.K. Puram, New Delhi-110006
9. DD (OL) for Hindi version.
10. MC for posting on the website of this Department.
