Centre approves wage and pension revision for these employees

In a major decision aimed at boosting employee morale and strengthening social security in the financial sector, the Central Government has 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 move reflects the Government’s continued commitment to the financial well-being and social security of serving employees, pensioners and family pensioners, recognising their long and dedicated service to the nation.

Overall, the decision is expected to benefit approximately 46,322 employees, 23,570 pensioners and 23,260 family pensioners.

Public Sector General Insurance Companies (PSGICs)

The wage revision for PSGIC employees will be effective from August 1, 2022. The overall increase in the wage bill has been fixed at 12.41 per cent, including a 14 per cent hike in basic pay and dearness allowance. A total of 43,247 employees of PSGICs will benefit from this revision.

As part of the revision, the Government has also approved an enhancement in the National Pension System (NPS) contribution from 10 per cent to 14 per cent for employees who joined after April 1, 2010.

In addition, family pension has been revised to a uniform rate of 30 per cent, effective from the date of publication in the official gazette. This will benefit 14,615 family pensioners out of a total of 15,582 existing family pensioners.

The total financial implication for PSGICs is estimated at Rs 8,170.30 crore, including Rs 5,822.68 crore towards wage revision arrears, Rs 250.15 crore for NPS contributions, and Rs2,097.47 crore for family pension revision.

The PSGICs include National Insurance Company Ltd., New India Assurance Company Ltd., Oriental Insurance Company Ltd., United India Insurance Company Ltd., General Insurance Corporation of India, and the Agricultural Insurance Company Ltd.

NABARD

For NABARD employees, the approved pay revision will be effective from November 1, 2022, with an increase of around 20 per cent in pay and allowances for all Group ‘A’, ‘B’ and ‘C’ employees. This will benefit around 3,800 serving and former employees.

The Government has also approved pension revision for NABARD retirees who were originally recruited by NABARD and retired before November 1, 2017, bringing them at par with ex-RBI NABARD retirees.

The pay revision will result in an additional annual wage bill of around Rs 170 crore and arrears amounting to approximately Rs 510 crore. Pension revision will involve a one-time arrear payment of Rs 50.82 crore, along with an additional monthly outgo of Rs 3.55 crore towards pension payments to 269 pensioners and 457 family pensioners.

Reserve Bank of India (RBI)

The Government has also approved revision of pension and family pension for RBI retirees, in line with its commitment to ensuring fair and sustainable retirement benefits.

Under the revised norms, pension and family pension will be enhanced by 10 per cent on basic pension plus dearness relief, effective from November 1, 2022. This translates into an effective enhancement of basic pension by a factor of 1.43, significantly improving monthly pension payouts.

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The revision will benefit 30,769 beneficiaries, including 22,580 pensioners and 8,189 family pensioners. The total financial implication is estimated at Rs 2,696.82 crore, comprising Rs 2,485.02 crore towards arrears and a recurring annual expenditure of Rs 211.80 crore.

The Government said the measures will provide meaningful relief to employees and pensioners by helping them better manage the rising cost of living while maintaining a dignified standard of living post-retirement. It reaffirmed its commitment to strengthening institutions that play a vital role in the country’s inclusive and sustainable economic growth.