The 8th Pay Commission coming for central employees will not be limited to only salary hike. This time another big demand has gained momentum – a huge increase in insurance cover.
According to sources, the government is now seriously considering in this direction that if an employee dies while on duty, his family gets insurance benefits ranging from ₹ 10 lakh to ₹ 15 lakh.
What is the Current Status?
Currently, central government employees get insurance protection under Central Government Employees Group Insurance Scheme (CGEGIS). The scheme has been in force since 1982 and its aim is to provide financial assistance to employees in death or retirement. But this system is now considered very old and irrelevant.
Right now the insurance amount is certain like this:
Group A: ₹ 1,20,000 (₹ 120 Monthly Subscription)
Group B: ₹ 60,000 (₹ 60 Monthly Subscription)
Group C: ₹ 30,000 (₹ 30 Monthly Subscription)
Employees have been angry over such a minor insurance amount for years, and now the issue can play an important role in the 8th Pay Commission.
What will happen?
According to government sources, a proposal is being prepared to increase the insurance cover from ₹ 10 lakh to ₹ 15 lakh in the upcoming Pay Commission. For this, a new framework based term insurance can be prepared. Improvement in monthly subscription is also possible – such as ₹ 120 can be cut up to ₹ 500, but there will be emphasis on making it more practical and employee -interest.
What happened to the previous recommendations?
The 7th Pay Commission also recommended three alternative insurance cover – ₹ 15 lakh, ₹ 25 lakh and ₹ 50 lakh -. But at that time the proposed subscription amount (₹ 1,500 to ₹ 5,000) for this, the employees got very high and the plan went on hold.
Unions increased pressure
AISGEF and other employee unions have stated their major demand to increase insurance cover. He says that if the family of the employee who sacrificed on duty does not get the support of at least ₹ 15 lakh, then it will be deeply ignored.
When can the decision come?
The 8th Pay Commission notification is expected to come in 2025, and its recommendations can be considered applicable from 1 January 2026. If the insurance scheme is involved in this, the new cover will be effective from the same day.
What is the benefit for employees?
Increase in insurance cover will be guaranteed not just a financial relief for employees, but their family safety. If the government takes this decision this time, it can become a great trust for millions of employees and their families.