Central govt mulling 1% annual hike in pension

New Delhi: The central government is considering increasing the pension of its retired employees by one per cent every year. The Parliamentary Permanent Standing Committee has recommended the government to implement the hike in pension commensurate with the age from 65 instead of the present 80.

The recommendation and the one per cent annual increase are under the consideration of the Finance Ministry, along with a suggestion for a five per cent increase for pensioners aged 65.

Currently, pensioners get a 20 per cent hike in pension on turning 80. The government included the one per cent annual increase in its agenda after a recent meeting Minister Jitendra Singh had with pensioners' associations.

The annual one per cent increase would tally with the 20 per cent hike when the pensioner turns 80, the associations argued.

Medical benefits likely to be doubled

The central government may double the fixed medical allowance (FMA) to pensioners to Rs 2,000 from the current 1,000.

The pensioners' associations have demanded an increase in FMA in the light of hike in medicine prices. They also demanded government support for medical examinations of pensioners every six months or one year.