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8th Pay Commission Update: Major CGHS Reforms on the Horizon for Central Government Employees

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8th Pay Commission Update: Major CGHS Reforms on the Horizon for Central Government Employees

The formal launch of the 8th Pay Commission is getting delayed, but the eyes of the employees and pensioners are now fixed on the new recommendations and health facilities. In such a situation, under the 8th Pay Commission, the government is preparing to make major changes in the Central Government Health Scheme (CGHS).

The central government is preparing to make major changes in the Central Government Health Scheme (CGHS) for its employees and pensioners. It is reported that it can be replaced by a new insurance based health scheme, which will be named CGEPHIS (Central Government Employees and Pensioners Health Insurance Scheme).

What is the Detail

According to a report by Financial Express, the Central Government Health Scheme (CGHS), which is the backbone of health services for central employees and pensioners, has undergone major changes during the last ten years. The 7th Pay Commission period (2016-2025) is now in its final phase and in the meantime the government has implemented many important reforms for 2025.

Meanwhile, the formal launch of the 8th Pay Commission is getting delayed, but the eyes of employees and pensioners are now fixed on the new recommendations and health facilities. In such a situation, the government can make major changes in the Central Government Health Scheme under the 8th Pay Commission.

What are the expectations

Let us tell you that the 8th Pay Commission has been announced, but the notification of its scope and the appointment of the chairman and members are still pending. Despite this delay, many expectations of employees and pensioners are coming to the fore. There is a strong discussion going on to replace CGHS with a new insurance-based scheme (CGEPHIS) so that health services can become more comprehensive and modern.

Until the new scheme is implemented, employees demand that CS(MA) and ECHS hospitals be included in CGHS to make treatment facilities easier. The possible increase in the fitment factor will not only increase the salary and pension, but will also increase the health contribution. In such a situation, employees want that the facilities should also improve in the same proportion.

Updates so far

The formation of the 8th Pay Commission was announced in January 2025. However, the Terms of Reference (ToR)—which sets out the scope, guidelines, etc. of the commission—is still incomplete; it is yet to be approved. The government recently told Parliament (Rajya Sabha) that inputs are being taken from stakeholders, such as the Ministry of Defence, Ministry of Home Affairs, DoPT, etc.; but the official notification and formation of the commission is yet to be issued. The commission was initially expected to come into effect from January 1, 2026. But now it is believed that the formation may be delayed, and it may possibly come into effect by FY 2027 (late 2026) or 2027.

 

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