Archive · 18 Sep 2026
8th Pay Commission Faces Calls to Raise Employee Insurance Benefits
The 8th Pay Commission is meeting government employees and their groups to hear their requests.
One important request is to improve a government insurance plan called CGEGIS.
Employees say the insurance amounts have stayed the same for many years.
They believe the coverage is now too small because prices and family expenses have increased.
Different groups want the insurance amounts raised by several times.
One group suggested coverage of up to ₹3 crore for some employees.
It also wants more of workers’ contributions to support insurance instead of savings.
The commission has not yet announced any changes and is expected to make recommendations in 2026.
Three-day consultations of the 8th Pay Commission are concluding in Chandigarh with central government employees and unions.
Employee groups say CGEGIS insurance slabs have remained unchanged for decades and no longer match inflation or financial needs.
Demands include substantially higher coverage, with the Federation of National Postal Organisations proposing up to ₹3 crore for Group A employees.
The Federation also proposed changing the insurance-to-savings ratio from 3:7 to 70:30 and automatically raising cover when Dearness Allowance exceeds 50%.
The commission has made no official decision on CGEGIS, salary, pension or allowance demands and is expected to submit recommendations by May-June 2026.
- Who
- The 8th Pay Commission, central government employees, and employee unions and associations.
- What
- Consultations are examining demands including higher CGEGIS insurance coverage, salary changes, pension revision and allowances.
- When
- The three-day Chandigarh consultations conclude today; the commission was constituted on 3 November 2025 and is expected to report by May-June 2026.
- Where
- Chandigarh, with participants from Punjab, Haryana, Himachal Pradesh and Chandigarh.
- Why
- Employee groups say CGEGIS coverage has not kept pace with inflation, rising living costs and families’ financial needs.
- Scheme under discussion
- Central Government Employees Group Insurance Scheme (CGEGIS)
- Current example
- The Federation of National Postal Organisations says Group C coverage is ₹1.5 lakh.
- Largest proposed coverage
- The Federation proposes ₹1 crore for Group C, ₹1.5 crore for Group B and ₹3 crore for Group A.
- Proposed monthly contributions
- ₹1,000 for Group C, ₹1,500 for Group B and ₹3,000 for Group A.
- Alternative proposal
- The Federation also cited 7th Pay Commission slabs of ₹15 lakh, ₹25 lakh and ₹50 lakh for Groups C, B and A.
- Insurance-to-savings proposal
- Change the existing 3:7 ratio to 70:30 in favour of insurance.
- Commission timeline
- The commission has an 18-month timeline and is tentatively expected to submit recommendations by May-June 2026.