8th Pay Commission: After the announcement of the 8th Pay Commission, the expectations of central government employees and pensioners have once again increased. In January this year, the government officially announced the formation of the 8th Pay Commission
8th Pay Commission: After the announcement of the 8th Pay Commission, the expectations of central government employees and pensioners have once again increased. In January this year, the government officially announced the formation of the 8th Pay Commission.
The purpose of this commission is to recommend necessary changes in the salary and pension of central employees and pensioners in view of the current economic conditions. Generally people believe that the Pay Commission only decides the formula for salary hike, but its responsibilities are much more than this.
The Pay Commission also reviews allowances, facilities and especially health insurance schemes. One such reform has been discussed for years, which is the Central Government Health Scheme (CGHS). This scheme provides health services to central government employees, pensioners and their dependents at affordable rates.
What is CGHS?
CGHS is a health scheme of the Government of India, which provides services like doctor’s advice, treatment, tests and medicines to employees and their families at low cost. This scheme is mainly concentrated in urban areas, which limits its reach.
Recommendations to replace CGHS have been made earlier as well
The 6th and 7th Pay Commissions had also recommended a new health insurance scheme in view of the limits of CGHS. The 6th Pay Commission had suggested that an alternative scheme should be brought in which employees can join by contributing voluntarily. This scheme should be mandatory for new employees to be appointed in future.
The 7th Pay Commission went further and said that health insurance can be a long-term and better solution for all employees and pensioners. They also suggested that for pensioners living outside CGHS, CGHS should list nearby hospitals under schemes like CS(MA) and ECHS so that they can also get cashless treatment.
Will a new scheme replace CGHS now?
In January 2025, news emerged that the Health Ministry is considering replacing CGHS with an insurance-based scheme. It may be named Central Government Employees and Pensioners Health Insurance Scheme (CGEPHIS). This scheme can be implemented through insurance companies registered with IRDAI. However, there has been no official confirmation from the government yet.
Now all eyes are on the 8th Pay Commission
Now that the 8th Pay Commission has been formed and will soon start its work, it will be interesting to see whether this commission is able to solve the age-old problem related to CGHS or not.
