The Central Government on Friday approved wage revision for employees of Public Sector General Insurance Companies (PSGICs) and the National Bank for Agriculture and Rural Development (NABARD), along with pension revision for retirees of the Reserve Bank of India (RBI) and NABARD.
The decision aims to boost employee morale and strengthen social security for pensioners in the financial sector, reflecting the Government’s commitment to ensuring the financial well-being of serving and retired personnel.
For PSGICs, the wage revision will be effective from August 1, 2022. The overall hike in the wage bill will be 12.41 per cent, including a 14 per cent increase on existing basic pay and dearness allowance. A total of 43,247 employees are expected to benefit from the revision. The decision also includes enhancement of the National Pension System (NPS) contribution from 10 per cent to 14 per cent for employees who joined after April 1, 2010.
Family pension for PSGICs has been revised at a uniform rate of 30 per cent from the date of publication in the official gazette. This will benefit 14,615 family pensioners. The total financial outgo for PSGICs is estimated at ₹8,170.30 crore, including arrears, NPS contributions and family pension payments.
The PSGICs include National Insurance Company Limited, New India Assurance Company Limited, Oriental Insurance Company Limited, United India Insurance Company Limited, General Insurance Corporation of India, and Agricultural Insurance Company Limited.
For NABARD, pay revision will be effective from November 1, 2022, with an average hike of about 20 per cent for Group ‘A’, ‘B’ and ‘C’ employees, benefiting around 3,800 serving and former employees. Pension revision for NABARD retirees recruited directly by the institution and who retired before November 1, 2017, has also been approved, bringing them on par with ex-RBI NABARD retirees.
The NABARD pay revision will involve an additional annual wage bill of around ₹170 crore and arrears of about ₹510 crore. Pension revision will result in a one-time arrear payment of ₹50.82 crore and a recurring monthly outgo of ₹3.55 crore.
The Government has also approved pension and family pension revision for retirees of the Reserve Bank of India. Under the revised framework, pension and family pension will be enhanced by 10 per cent on basic pension plus dearness relief, with effect from November 1, 2022. This will lead to an effective enhancement of basic pension by a factor of 1.43 for all retirees.
The revision will benefit 30,769 beneficiaries, including 22,580 pensioners and 8,189 family pensioners. The total financial implication for RBI pension revision is estimated at ₹2,696.82 crore, comprising ₹2,485.02 crore towards arrears and a recurring annual expenditure of ₹211.80 crore.
Overall, the measures will benefit approximately 46,322 employees, 23,570 pensioners and 23,260 family pensioners across PSGICs, NABARD and RBI. The move is expected to provide meaningful financial relief, strengthen social security and support a dignified standard of living for employees and retirees.
