The Centre has approved major wage and pension revisions for PSGICs, NABARD and RBI, impacting over 90,000 employees and pensioners. With hikes, arrears and higher pensions involved, the decision carries a significant financial and social impact.
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New Delhi: The Central Government has approved a comprehensive wage and pension revision for employees and pensioners of Public Sector General Insurance Companies (PSGICs), the National Bank for Agriculture and Rural Development (NABARD), and the Reserve Bank of India (RBI). The move is aimed at enhancing employee morale and ensuring financial security for retirees in key financial institutions.
According to the government, the decision reflects its continued commitment to recognising the long-standing service of employees and pensioners while strengthening social security mechanisms within the financial sector.
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For employees of PSGICs, wage revision will come into effect from August 1, 2022. The overall increase in the wage bill has been fixed at 12.41 percent, including a 14 percent hike in basic pay and dearness allowance. As many as 43,247 employees across public sector general insurance firms will benefit from this revision.
In addition, the government has approved an enhancement in the National Pension System (NPS) contribution from 10 percent to 14 percent for employees who joined service after April 1, 2010. Family pension for PSGICs has also been revised to a uniform rate of 30 percent, effective from the date of notification in the official gazette. This revision will benefit 14,615 family pensioners.
The total financial implication for PSGICs is estimated at ₹8,170.30 crore, covering wage arrears, increased NPS contributions, and family pension payments. The PSGICs include NICL, NIACL, OICL, UIICL, GIC, and AICIL.
The government has approved a pay revision for NABARD employees effective November 1, 2022, providing an average hike of about 20 percent for Group ‘A’, ‘B’, and ‘C’ employees. The decision will benefit nearly 3,800 serving and former employees.
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Pension revision has also been approved for NABARD retirees who were recruited directly 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 ₹170 crore, while pension revision will involve a one-time arrear payment of ₹50.82 crore.
The Centre has also approved a 10 percent enhancement in pension and family pension for RBI retirees, effective from November 1, 2022. This revision will benefit 30,769 beneficiaries, including pensioners and family pensioners, with a total financial outgo of ₹2,696.82 crore.
In total, the measures are expected to benefit over 46,000 employees and nearly 47,000 pensioners and family pensioners, providing significant relief amid rising living costs and reinforcing post-retirement financial stability.
