In a move that could benefit more than 50 lakh central government employees and 56 lakh pensioners, the Seventh Pay commission is planning to propose to introduce health insurance scheme to replace Central Government Health Scheme (CGHS) at highly subsidized rates.

The pay panel has already held detailed discussions about this with various stakeholders, including organisations, federations, groups representing civil employees as well as Defence services.

The pay panel will ask the central government to urge the insurance industry to come up with feasible health insurance solution for the central government employees and pensioners. The IRDA, the insurance regulatory body of India, will be compelled to ask the health insurance companies to offer a basic insurance to every central government employee and pensioner, regardless of age or medical condition and are not allowed to make a profit off this basic insurance.

The serving central government employees in non-CGHS areas are provided healthcare facilities under the CS(MA) Rules, 1994, but pensioners are not covered under these rules.

The pensioners are, however, entitled to a fixed medical allowance of Rs 500 per month. The pensioners residing in non-CGHS areas have the option to become a CGHS member in any CGHS-covered city of their choice to avail the medical facilities under the CGHS Scheme.

Health insurance would be available for central government employees and pensioners till death, with the insured employees and pensioners will have to pay 50% of the premium from their salaries and pensions and the remaining 50% premium may be paid by the central government.

The health insurance would cover a family of six the employee and pensioner himself or herself, the spouse, two children and two parents. The maximum sum assured for family in a year could up to Rs 5 lakh.

Under the CGHS, the annual per capita expenditure is more than Rs 5,000. In contrast, the National Rural Health Mission (NRHM), which caters to the rural masses, spends just Rs 180 per head.

The CGHS is financed mainly through the Centre’s tax revenues. Though beneficiaries do contribute a share of their wages towards premium, ranging from Rs 600 to Rs 6,000 a year depending on their pay scale, this accounts for just about 5 per cent of the total expenditure. The government shells out the remaining 95 per cent.

So, the central government also wanted for ending the CGHS in its current form and to move to an insurance-based health scheme to cut costs.

Source : The Sen Times

Newspapers continuously update us with news about the recommendation of the 7th Pay Commission which holds the highest expectation levels at present. From such sources, we come to know that the recommendations of the 7th Pay Commission are going to be submitted on 31st of October and they may come to force from 1/4/2016.

Pay structure is very important and equally important is the promotion policy. Assured Career Progression (ACP) which was introduced in the 5th Pay Commission, provided some comfort for the employees who suffered from lack of promotions for long years. Before this, promotion was just an illusion. Labour Unions and Federations of the Central government employees got these benefits for us after much struggle.

In the recommendations of the 6th Pay Commission, which came after this, ACP was changed to MACP (Modified Assured Career Progression) and it provided an opportunity for employees who were not promoted for the last ten years to enter the next Grade Pay.

In this, the benefit was very small as 1800, 1900, 2000, 2400, 2800, 4200, 4600, 4800 (excluding 2800-4200). Many issues in this method of Grade Pay still lie unresolved before the National Anomaly Committee.

Hence, lakhs of Central Government employees expect a favourable change in MACP at least through 7th Pay Commission. During his or her service period, an employee must have at least five promotions. This has been an important plea of the Central Trade Unions.

The benefit of the first MACP has to be given after 8 years of continuous service and the benefit of the successive MACP has to be given after 7,6,5 and 4 years of continuous service.

If the benefits of MACP were such, certainly all the central government employees will be highly encouraged and will work hard to make all the Central Government plans and activities a great success.

This will definitely increase the productivity of the Central Government and the associated industries. Due to this, the relationship between the government and the employees will become more harmonious and there will be a peaceful working environment.

Source–http://centralgovernmentemployeesportal.blogspot.in