8th Pay Commission: CGEGIS cover unchanged for decades; central government employees want higher insurance benefits

The three-day Chandigarh consultations of the 8th Pay Commission conclude today. The panel is holding meetings with eligible central government employees and their unions, associations and other stakeholders from Punjab, Haryana, Himachal Pradesh and Chandigarh.

While no specific agenda was announced for the meetings, fitment factor, pension revision and allowances have featured among other demands raised during earlier consultations in other cities.

Another demand that has remained significant throughout the Pay Commission’s discussions is the revision of the Central Government Employees Group Insurance Scheme (CGEGIS). Employee unions have consistently said that insurance coverage under the scheme has not kept pace with inflation and families’ financial needs.

Here is what the employee unions and associations are demanding from the 8th Pay Commission.

CGEGIS: What employee unions are demanding

CGEGIS provides insurance protection to eligible central government employees and a savings benefit. According to the aspects discussed in the memorandum of prominent employee unions, the insurance slabs have remained unchanged for decades; for example, the Group C cover stands at ₹1.5 lakh, as per the Federation of National Postal Organisations (FNPO).

This figure needs to be updated to reflect current inflation figures and economic realities. This underlines the need for a comprehensive overhaul of the scheme. Below are the key demands of the employee unions.

Note: For complete details of the demands, refer to the official memorandum of the respective employee union.

Why CGEGIS revision matters

The FNPO has also proposed changing the existing 3:7 insurance-to-savings ratio to 70:30 in favour of insurance protection. It has suggested automatic 25% increases in cover whenever Dearness Allowance (DA) crosses 50%.

These proposals highlight the gap between the insurance protection employees seek and the existing scheme.

For now, no official declaration on CGEGIS revision or other salary and pension demands has been made by the 8th Pay Commission, headed by Justice Ranjana Prakash Desai. Prof Pulak Ghosh is a part-time member and Pankaj Jain is the member-secretary.

The 8th Pay Commission, since its constitution on 3 November 2025, is expected to conclude its 18-month timeline tentatively by May-June 2026 and submit its final recommendations to the Centre.

For now, the Commission continues its consultative phase, concluding its Chandigarh meetings. The next scheduled visit is to Bengaluru on 7-8 October. As consultations progress, CGEGIS revision will likely remain an important issue for employees.