The Ministry of Finance has issued a Master Circular dated February 17, 2026, revising the accounting procedure for the Central Government Employees Group Insurance Scheme (CGEGIS), 1980. While the scheme benefits remain unchanged, the circular consolidates decades of amendments into one comprehensive document — aiming to bring clarity, uniformity and smoother processing of contributions and claims.
For central government employees, this means better record-keeping, faster claim settlement and clearer fund classification under the scheme.
The circular, issued by the Controller General of Accounts (CGA), states that the accounting procedure first issued in 1981 has now been revised “incorporating all the amendments issued thereafter” for the convenience of stakeholders.
In simple terms, instead of referring to multiple old orders issued in 1981, 1982, 1984, 1985 and later years, departments will now follow a single updated instruction set.
For employees, this reduces ambiguity in how their CGEGIS contributions and benefits are handled.
No individual accounting — here’s what it means
One key clarification in the circular is: “There will be no individual accounting under the Scheme.” Instead, all transactions will be booked under a new minor head in the Public Account of India:
8011 – Insurance and Pension Funds
– Central Government Employees’ Group Insurance Scheme
– Insurance Fund (sub-head)
– Savings Fund (sub-head)
This means the scheme will continue to operate under two components: Insurance Fund and Savings Fund. The separation ensures transparency in how money is credited and paid.
How deductions from salary will be handled
The circular reiterates that Drawing and Disbursing Officers (DDOs) must clearly show the total subscription recovered from employees in pay bills under the specified accounting head.
Every January, DDOs must attach a schedule with details, which Pay & Accounts Offices (PAOs) will record for preparing annual reports.
For employees, this means contributions will continue to be deducted as before. But reporting and documentation will now follow a streamlined format.
Faster settlement of death and other claims
On payment of dues to beneficiaries, the circular directs: “The Pay & Accounts Offices will pass the bills expeditiously (especially in respect of claims on account of death of a member).”
Payments will clearly indicate amounts payable from: Insurance Fund and Savings Fund. Service books containing nominations and service details must be sent along with claim bills to ensure correct processing.
For employees and families, this instruction is important because it stresses speed and accuracy in claim settlement, particularly in death cases.
What happens if an employee is transferred?
The circular gives detailed instructions regarding transfers between ministries or departments.
Transfer orders must clearly mention the employee’s CGEGIS group and period of continuous membership.
The new DDO must begin subscription recovery only after verifying the previous deductions. This ensures there is no break or duplication in contributions, protecting employees’ benefits.
Deputation and foreign service cases
For employees on deputation to State Governments, Union Territories or on foreign service, accounting and monitoring of CGEGIS contributions will be handled by the parent department’s Accounts Officer.
This ensures continuity of coverage under the scheme.
How interest will be calculated and credited
The circular explains that the total subscription under CGEGIS will be split between Insurance Fund and Savings Fund as per prescribed percentages. After adjusting quarterly payments, the positive balance in each fund will earn interest. The interest rate will be the one notified by the Ministry of Finance, Department of Economic Affairs. The interest amount will be credited quarterly and reflected in government accounts in the following month.
For employees, this means the Savings Fund portion continues to earn notified interest, forming a key part of the maturity benefit.
Annual reporting made mandatory
Pay & Accounts Officers must send annual reports by 20 February following each anniversary of the scheme. Consolidated reports must reach the Ministry of Finance within specified timelines.
This structured reporting system ensures better monitoring of total collections and payments, transparency in fund management.
Budget estimates and fund utilisation
The circular also states that annual estimates of accruals, disbursements and interest payments under the scheme will be furnished to the Budget Division.
A Proforma Account will be maintained for utilisation of funds, including use towards House Building Advance as envisaged under the scheme.
What does not change for employees?
Importantly, the circular does not change subscription rates, benefits or eligibility under CGEGIS. It focuses purely on accounting and procedural clarity.
So, employees will continue to contribute monthly as per their pay level, receive Insurance and Savings Fund benefits and earn interest on the Savings Fund component.
Summing up…
The February 17, 2026 Master Circular is largely an administrative reform, but it is significant. By consolidating decades of instructions into one document, the government aims to make CGEGIS accounting more transparent, uniform and efficient.
For central government employees, this should translate into clearer fund tracking, better documentation, faster claim processing and improved financial oversight.
While the scheme itself remains unchanged, the new accounting framework strengthens how it is managed — which ultimately safeguards employees’ contributions and benefits.