The 8th Pay Commission, which was announced in January 2025, will redesign the salary, allowances, and pensions of central government employees and pensioners. Implementation is proposed from January 1, 2026.
The Central Government Health Scheme (CGHS), which was implemented in 1954, offers holistic and inexpensive healthcare services to central government employees, pensioners, and their dependent family members across a network of wellness centers and empaneled hospitals spread throughout India.
8th Pay Commission: This January, the government announced the establishment of the new pay commission, whose primary responsibility will be to have a mandate to recommend changes required in the salary and pension of central government employees and pensioners based on prevailing economic realities in the nation. Everybody has a general opinion that pay panels' sole job is to recommend the amount of hike required to be provided in employees' salaries according to some formula.
But the job of paying commissions also includes the examination of several allowances, privileges, and other concessions, such as health insurance, and subsequently suggesting changes necessary for reform actions in the best interest of employees.
One such reform initiative that has been in the limelight for employees for the past several years is the Central Government Health Scheme (CGHS). Central government staff and their dependents are mainly covered under the CGHS, providing them with extensive medical care and allied facilities.
The previous three pay commissions have suggested the launching of a new health scheme for central government personnel and pensioners. Though there has been an interest from the government, it has not yet been implemented.
The coverage of CGHS is limited, and facilities are not universally available. Hence, the previous pay commissions thought that there must be a viable and practical healthcare scheme.
The 6th Pay Commission suggested that an optional health scheme be launched for central government employees and pensioners, in which one could join voluntarily, subject to one paying the requisite fixed contribution. It also suggested that the scheme should be extended mandatorily to all fresh recruits entering the service in the future.
The committee also suggested that coverage by medical should be available to those retiring after the scheme goes into operation.
The 7th Pay Commission specifically declared that health insurance is the best available choice to ensure long-term and improved medical coverage for all employees, pensioners, and their families.
The pay panel also highly suggested that a healthcare scheme should be adopted for central government employees and pensioners. Until the scheme gets implemented, the commission made a valuable recommendation for pensioners who are not under the coverage of CGHS.
The 8th Pay Commission, indicated in January 2025 with a plan to implement from 2026, will considersalaries and pensions and is likely to consider reforms in the CGHS, maybe replacing it with a new health scheme as recommended by past pay commissions.