The buzz about the formation of the Eighth Pay Commission has generated a feverish enthusiasm among millions of central government employees and pensioners across the country. The biggest question on every employee’s mind today is when the new Pay Commission’s recommendations will be implemented and how substantial their basic salaries will be. Along with salary increases, the central government provides its employees with numerous welfare benefits, such as the CGHS and HBA, which provide a strong boost to their financial and health security.
CGHS
The Central Government Health Scheme (CGHS) is a flagship scheme of the Government of India that provides free and subsidized medical coverage to central government employees, pensioners, and their dependents. This scheme is operated through a vast network of wellness centers and empanelled private hospitals. The most significant feature of this scheme is that it does not require a fixed insurance limit for treatment; instead, it offers package-based treatment as determined by the government.
Employees and their family members can generate their e-CGHS card online, providing them with access to cashless treatment and affordable medicines at top hospitals across the country. Experts believe that this robust network of healthcare facilities may be further expanded after the Eighth Pay Commission.
House Building Advance (HBA)
Amidst high home loan interest rates in the market, the Central Government’s House Building Advance (HBA) scheme is proving to be a boon for employees. Under this scheme, employees can avail a steel loan at a very low interest rate to build a new house, purchase a flat, or renovate an old house. Under current rules, a central government employee can avail a steel loan of up to 34 times the sum of their basic pay and dearness allowance (DA), or a maximum of ₹25 lakh.
The most significant feature of this loan is its interest rate, which typically ranges from 6% to 7.5%, significantly lower than a home loan from a private bank. This scheme is available to all permanent employees who have completed at least five years of government service. However, the condition is that the employee has not previously availed of any other government housing scheme.
When will the new pay scale be implemented
Experts estimate that the 8th Pay Commission’s recommendations could be implemented as early as January 2026. Although no official firm date has been announced by the government yet, preparations are in full swing. Whenever a new pay commission is implemented, not only does the basic salary increase, but dearness allowance (DA), house rent allowance (HRA), and other perks also see significant improvements. This significantly boosts employees’ monthly savings and spending power.
HBA and CGHS Expected
Following the recommendations of the Eighth Pay Commission, it is expected that the House Building Advance (HBA) limit will be increased from ₹25 lakh to more, providing significant assistance to employees in purchasing their own homes in times of rising inflation. Similarly, the increase in the number of CGHS empaneled hospitals will provide significant health benefits to employees posted in remote areas. These schemes are not just financial assistance but a testament to the government’s strong commitment to its employees.