Central government employees and pensioners are eagerly awaiting the formation of the 8th Pay Commission. Earlier reports suggested that the government might announce it in the first week of April, marking the beginning of the new financial year.
However, there has been no official update yet. Amidst the speculation, concerns are rising—will the 8th Pay Commission recommend discontinuing the Central Government Health Scheme (CGHS)?
Is CGHS Being Replaced by a New Health Scheme?
The Central Government Health Scheme (CGHS) is a crucial medical benefit program that provides affordable healthcare, medicines, and consultations to central government employees, their families, and retirees. Recent reports indicate that the government may replace CGHS with a new health scheme, possibly as part of the 8th Pay Commission’s recommendations.
Past Discussions on Replacing CGHS
This isn’t the first time the discontinuation of CGHS has been debated. The 5th, 6th, and 7th Pay Commissions also suggested introducing an alternative scheme, citing CGHS’s limited nationwide coverage and accessibility challenges. Many government employees and their dependents struggle to utilize the benefits due to operational inefficiencies.
Talks of a New Insurance-Based Scheme
In January 2024, a Financial Express report revealed discussions within the Health Ministry about replacing CGHS with a new insurance-based scheme exclusively for government employees. However, no concrete decision has been made yet.
What’s Next? Awaiting the 8th Pay Commission’s Terms of Reference
All eyes are now on the government’s next move—approving the Terms of Reference (ToR) for the 8th Pay Commission. Once the Cabinet gives its approval, an official notification will be issued, and the commission will begin its work. Only then can employees expect clarity on potential changes to salaries, healthcare benefits, and other allowances.