A new demand has come up for Central Government employees regarding the 8th Pay Commission—a massive Rs 1 crore insurance cover. What is this proposal, who will benefit, and what are the details? We break it down in 10 points.
Central government employees are putting forward new demands for the 8th Pay Commission. After basic pay, fitment factor, and HRA, they are now asking for a much bigger insurance cover.
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A Rs 1 Crore Insurance Proposal
If the government accepts this demand, Group-C employees could get an insurance cover of up to Rs 1 crore. Employee unions have also demanded higher cover for Group-B and Group-A staff.
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Which Scheme Covers This Insurance?
This insurance falls under the 'Central Government Employees Group Insurance Scheme' or CGEGIS. The scheme gives employees both savings benefits and an insurance safety net.
Employee unions argue that the insurance amount has not been increased for many years. Meanwhile, the cost of living and everyday expenses have shot up significantly.
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A Call for a 10-Fold Increase
The unions have stated that the old insurance cover is no longer enough to meet today's needs. That's why they are demanding a minimum 10-fold increase in the current cover.
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FNPO's Specific Proposal
The Federation of National Postal Organisation (FNPO) has submitted a specific, group-wise proposal to the 8th Pay Commission regarding the insurance cover for central employees.
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How Much Cover and Contribution for Each Group?
The proposal suggests a Rs 1 crore cover for Group-C staff with a Rs 1,000 monthly contribution. For Group-B, it's a Rs 1.5 crore cover for Rs 1,500, and for Group-A, a Rs 3 crore cover for Rs 3,000 per month.
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Current Cover is Just Rs 1.5 Lakh
The FNPO points out that the insurance cover amount has remained stagnant for decades. For example, a Group-C employee's insurance cover is still just Rs 1.5 lakh.
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An Alternative Plan Also Exists
An alternative system, recommended by the 7th Pay Commission, proposes covers of Rs 15 lakh, Rs 25 lakh, and Rs 50 lakh for Group-C, B, and A staff, respectively. It also suggests changing the current 3:7 insurance-to-savings ratio to 70:30.
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Linking Insurance Cover to DA Hike
The organisation also proposes that the insurance cover should be increased by 25% whenever the Dearness Allowance (DA) crosses the 50% mark. These are the key proposals submitted to the 8th Pay Commission to enhance employee insurance protection.
