As the first week of 2026 comes to a close, two landmark administrative reforms have taken center stage for both Central and State Government employees. The shift towards a paperless “Digital India” has reached a critical milestone with the phasing out of physical service books, while major states have announced massive expansions in healthcare protection.

Mandatory Digital Service Books on e-HRMS 2.0

The Department of Personnel and Training (DoPT) has issued a final directive requiring all Central Ministries and Departments to migrate exclusively to Digital Service Books. Effectively immediately, the e-HRMS 2.0 portal will be the sole recognized record for every government servant’s career—from initial recruitment to final retirement.

According to Admin Central Pay Commission, this move eliminates the risk of manual errors and the loss of physical records. Employees can now access their service history, promotions, and transfer details in real-time. For staff in the Department of Posts and Railways, this digital transition is expected to fast-track the processing of terminal benefits and 8th Pay Commission arrears once they are announced.

State Updates: Cashless Health Cover Reaches ₹10 Lakh

In a major boost for state-level employees, the Punjab Government has announced the launch of the Mukh Mantri Sehat Yojna on January 15, 2026. This scheme provides an unprecedented ₹10 lakh cashless medical insurance cover per family per year, significantly upgrading the previous ₹5 lakh limit. The scheme covers over 800 empanelled public and private hospitals, including 8 Government of India hospitals.

Following this lead, the Madhya Pradesh Government has also prepared a framework to roll out a similar cashless health scheme for its employees and pensioners starting this month. These initiatives are designed to align with the welfare standards observed at the Central level, ensuring state staff are not left behind in the 8th CPC era.

Updated Child Education Allowance (CEA) Limits

In parallel, fresh circulars have clarified that with the DA now hitting 60%, the Children Education Allowance (CEA) and Hostel Subsidy are due for their next automatic revision. Under current rules, these limits rise by 25% whenever the DA increases by 50%. This update ensures that parents can claim higher reimbursements for the 2025-26 academic session, helping to offset the rising cost of professional schooling.

To see how these health schemes and digital record-keeping changes affect your retirement planning, you can utilize our 8th Pay Commission Salary Calculator, which now incorporates the latest welfare benefits and allowance projections for 2026.