Big relief to central employees and pensioners, medical claim limit doubled, latest update on 8th Pay Commission

News India Live, Digital Desk: The government has decided to provide relief to the employees from the financial burden by relaxing health services and administrative procedures. Along with this, the figures of Dearness Allowance (DA) which will be applicable from January 2026 have also made the picture clear.1. Huge increase in medical claim (CGHS) limit The Central Government has simplified the process of approval of medical claims through a new Office Memorandum (OM) issued on 16 February 2026: New limit: Now the ‘Head of Department’ (HoD) of the ministries will be able to directly approve medical claims up to ₹ 10 lakh. Earlier this limit was only ₹ 5 lakh. Benefit: With this, there will be no need to send files to the Integrated Finance Division (IFD) for treatment bills up to ₹ 10 lakh, which will reduce the delay in getting the money to the employees. Ambulance facility: For serious patients, the cost of ambulance within the city can now be easily availed on the basis of doctor’s certificate. 2. Drafting Committee meeting on 8th Pay Commission: An important meeting is going to be held in New Delhi on 25 February 2026, in which the employee organizations (JCM) will submit their memorandum to the government. Fitment Factor: The employee organizations are demanding a fitment factor of 2.86 to 3.25. If 3.25 is accepted, the minimum basic pay may increase from ₹ 18,000 to ₹ 58,500. Office activated: The office of the 8th Pay Commission has become active in Chandralok Building, Janpath, Delhi, which is an indication that the process of salary and pension revision is now gaining momentum.3. 2% increase in Dearness Allowance (DA) decided. Based on Consumer Price Index (AICPI) data of December 2025, the calculation of Dearness Allowance for January 2026 has been completed: New Rate: DA is now going to increase from 58% to 60%. When to announce? Its official announcement is likely to be in March 2026 (before Holi). Arrears for January and February will also be given to the employees.4. Good news on EPS-95 pensionMinimum pension: The government is considering the demand to increase the minimum pension for pensioners covered under EPFO from ₹ 1,000 to ₹ 7,500. Relaxation in rules: Discussion is also going on to relax the rule of 36 months’ average salary for pension calculation, which will provide more benefits to retiring employees. Checklist for employees (What to do?) E-KYC: If you are a pensioner, make sure your digital life certificate is updated. Aadhaar Linking: Check Aadhaar and bank details in your service records for medical claims and 8th Pay Commission benefits.