As of February 3, 2026, the Ministry of Finance (Department of Expenditure) has released the updated Tables of Benefits for the Central Government Employees Group Insurance Scheme (CGEGIS) for the savings fund period from January 1, 2026, to March 31, 2026. While the subscription rates remain unchanged under the 7th Pay Commission, the compounding interest rates have stabilized, ensuring a healthy retirement corpus for employees.
CGEGIS Subscription Rates 2026 (Group A, B, C)
The monthly deduction from your salary consists of two parts: the Insurance Fund (Risk Cover) and the Savings Fund (Investment). The ratio is strictly 30:70.
| Group (Pay Level) | Total Subscription | Insurance Fund (30%) | Savings Fund (70%) | Insurance Cover (Death) |
|---|---|---|---|---|
| Group A (Level 10+) | ₹120 / month | ₹36 | ₹84 | ₹1,20,000 |
| Group B (Level 6 to 9) | ₹60 / month | ₹18 | ₹42 | ₹60,000 |
| Group C (Level 1 to 5) | ₹30 / month | ₹9 | ₹21 | ₹30,000 |
Note: The 7th Pay Commission had recommended increasing these rates to ₹1500, ₹3000, and ₹5000, but the Cabinet rejected this proposal. Hence, the low rates from the 1990s continue in 2026.
How to Read the Table of Benefits 2026?
The Department of Expenditure issues a complex PDF table every quarter. Here is the simplified method to find your amount:
- Find Year of Entry: Locate the year you joined the CGEGIS scheme (usually Jan 1st of the year after you joined service).
- Find Month of Cessation: Locate the month you are retiring (e.g., January 2026).
- Identify Unit Value: The table shows the value for 1 Unit (₹10 subscription).
- Multiply: Multiply that value by your Group’s units:
- Group A: Multiply by 12 (₹120 subs).
- Group B: Multiply by 6 (₹60 subs).
- Group C: Multiply by 3 (₹30 subs).
Is CGEGIS Amount Taxable? (Income Tax Rule)
This is a critical question for retirees planning their tax liabilities.
- Death Claim: The insurance amount received by the nominee is fully Tax-Free under Section 10(10D).
- Retirement Maturity: The accumulated Savings Fund received by the employee on retirement is also Exempt from Tax. It does not need to be included in your “Income from Salary”.
8th Pay Commission: Will CGEGIS Rates Increase?
With the 8th Pay Commission discussions active, there is a strong demand to revise the Insurance Cover.
| Component | Current (7th CPC) | Proposed (8th CPC) |
|---|---|---|
| Group A Cover | ₹1.2 Lakhs | ₹50 Lakhs |
| Group B Cover | ₹60,000 | ₹25 Lakhs |
| Group C Cover | ₹30,000 | ₹15 Lakhs |
| Subscription | ₹120 / ₹60 / ₹30 | ₹5000 / ₹2500 / ₹1500 |
If approved, the monthly deduction will rise significantly, but the family security cover will match modern standards.
Common Myths vs Facts
| The Myth | The Fact (Official Rule) |
|---|---|
| “I get the full amount I paid.” | False. You only get the 70% portion (Savings Fund) back with interest. The 30% (Insurance Fund) is the premium for life cover and is not returned. |
| “Interest is fixed at 8%.” | False. Interest rates float quarterly, aligned with GPF. Currently, it is around 7.1%. |
| “I can withdraw CGEGIS during service.” | False. CGEGIS cannot be withdrawn or taken as an advance (like GPF) during service. It is paid only on cessation of service. |
What happens if an employee dies in service?
The family receives two payments:
1. Insurance Fund: The full cover amount (e.g., ₹60,000 or ₹1,20,000).
2. Savings Fund: The accumulated value in the savings account up to the date of death.
Can I increase my CGEGIS subscription voluntarily?
No. The subscription rate is fixed based on your “Group” classification. You cannot voluntarily contribute more to increase savings.
How to correct wrong CGEGIS deduction?
If you were promoted but your deduction didn’t increase, submit a representation to your DDO immediately. Arrears of subscription will be deducted with interest to regularize the account.
हिंदी सारांश
CGEGIS (केंद्र सरकार कर्मचारी समूह बीमा योजना) के तहत 2026 की ब्याज दरें जारी कर दी गई हैं। वर्तमान में ग्रुप C कर्मचारी के वेतन से 30 रुपये, ग्रुप B से 60 रुपये और ग्रुप A से 120 रुपये की कटौती होती है। इसका 70% हिस्सा ‘बचत कोष’ (Savings Fund) में जमा होता है जो रिटायरमेंट पर ब्याज सहित मिलता है। यह राशि टैक्स-फ्री होती है।
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