Indian Government Approves Pay and Pension Revision for Insurance Staff, NABARD, and RBI Retirees

The Central Government has authorised wage and pension revisions for employees and retirees of PSGICs, NABARD and the Reserve Bank of India.  

This move will impact over 93,000 beneficiaries across various employment and pension categories with a financial implication exceeding ₹11,000 crore. 

Wage Revision for PSGIC Employees from August 2022 

Effective from August 1, 2022, employees of Public Sector General Insurance Companies (PSGICs) will receive a wage hike of 12.41%, which includes a 14% rise in basic pay and dearness allowance.  

This revision applies to 43,247 employees. Additionally, for staff who joined after April 1, 2010, employer contributions to the National Pension System will increase from 10% to 14%. 

The estimated financial impact for these revisions is ₹8,170.30 crore, covering ₹5,822.68 crore in arrears, ₹250.15 crore for increased NPS contributions, and ₹2,097.47 crore for family pension updates. 

Uniform Family Pension at 30% for PSGICs 

The family pension structure for PSGICs has been revised to a uniform rate of 30% of the last drawn pay. This revision is effective from the date of its publication in the official gazette.  

It benefits 14,615 out of 15,582 existing family pensioners belonging to the PSGICs such as National Insurance Company, New India Assurance, Oriental Insurance, United India Insurance, General Insurance Corporation of India and Agricultural Insurance Company of India. 

Read More: Union Cabinet Approves Continuation of Atal Pension Yojana (APY) Up to FY 2030-31! 

NABARD Wage and Pension Revisions Implemented 

NABARD employees across Group A, B and C will receive a salary increase of about 20% starting November 1, 2022. This applies to about 3,800 employees, with ₹170 crore added to the annual wage bill and ₹510 crore allocated for arrears. 

Pensioners and family pensioners retired before November 1, 2017, from NABARD, originally recruited by the institution, will also see a revision aligning their pension benefits with those of ex-RBI retirees. This adjustment will result in ₹50.82 crore in arrears and ₹3.55 crore in additional monthly disbursals. 

RBI Pension Revisions for Over 30,000 Beneficiaries 

The RBI pension revision includes a 10% boost on basic pension plus dearness relief, effective from November 1, 2022. It benefits 30,769 retirees, comprising 22,580 pensioners and 8,189 family pensioners.  

The adjustment raises the basic pension by a factor of 1.43. The financial impact is ₹2,696.82 crore, with ₹2,485.02 crore in arrears and ₹211.80 crore in recurring yearly expense. 

Conclusion 

The government’s decision offers significant financial enhancements for current and retired employees of PSGICs, NABARD and RBI. The revisions aim to ease cost-of-living pressures and standardise pension benefits across financial institutions for over 93,000 individuals. 

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