8th Pay Commission: Major Changes Expected in Central Government Health Scheme (CGHS)
The Central Government is preparing significant changes to the existing Central Government Health Scheme (CGHS) for its employees and pensioners. Reports suggest that CGHS may soon be replaced with a new insurance-based health scheme called CGEHPIS (Central Government Employees & Pensioners Health Insurance Scheme).
According to a report by Financial Express, CGHS — considered the backbone of healthcare services for central government employees and pensioners — has undergone several reforms over the past decade. The 7th Pay Commission (2016–2025) is now in its final phase, and during this period, the government has introduced many key reforms.
While the formal rollout of the 8th Pay Commission has been delayed, employees and pensioners are eagerly awaiting new recommendations and healthcare benefits. One of the biggest expectations is a complete overhaul of CGHS, with discussions around replacing it with CGEHPIS to provide broader and more modern healthcare coverage.
Until the new scheme is implemented, employees are demanding that CS(MA) and ECHS hospitals be included under CGHS to improve accessibility. Additionally, the expected rise in the fitment factor under the 8th Pay Commission would lead to higher salaries and pensions, but also increased health contributions. Hence, employees are seeking proportional improvements in healthcare services.
As of January 2025, the government announced the formation of the 8th Pay Commission. However, the Terms of Reference (ToR) — which define the commission’s scope and guidelines — have not yet been finalized, and appointments of the chairperson and members are still pending. The government recently informed Parliament (Rajya Sabha) that inputs are being collected from stakeholders, including the Ministry of Defence, Ministry of Home Affairs, and DoPT.
Initially, the commission was expected to be implemented from January 1, 2026, but given the delay, it is now likely that its rollout could be pushed to FY 2027 (late 2026 or 2027).