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 and family pension revision for retirees of the Reserve Bank of India (RBI) and NABARD.
The decision underscores the government’s continued focus on social security and financial well-being of employees and pensioners in key financial institutions.
In total, the move is expected to benefit around 46,322 employees, 23,570 pensioners, and 23,260 family pensioners.
Wage Revision for PSGIC Employees
The wage revision for PSGIC employees will be effective from August 1, 2022.
Key highlights:
- Overall wage bill increase: 12.41%
- Increase in basic pay and dearness allowance: 14%
- Number of beneficiaries: 43,247 employees
In addition, the National Pension System (NPS) contribution for employees who joined after April 1, 2010 has been enhanced from 10% to 14%, strengthening long-term retirement security.
Family Pension Revision
Family pension has been revised to a uniform rate of 30%, effective from the date of notification in the Official Gazette. This will benefit 14,615 family pensioners out of the total 15,582 existing family pensioners.
Financial Implication for PSGICs
The total financial outgo is estimated at ₹8,170.30 crore, comprising:
- ₹5,822.68 crore towards wage revision arrears
- ₹250.15 crore for enhanced NPS contribution
- ₹2,097.47 crore for family pension revision
PSGICs Covered
The revision applies to:
- National Insurance Company Ltd. (NICL)
- New India Assurance Company Ltd. (NIACL)
- Oriental Insurance Company Ltd. (OICL)
- United India Insurance Company Ltd. (UIICL)
- General Insurance Corporation of India (GIC)
- Agricultural Insurance Company Ltd. (AICIL)
Pay and Pension Revision for NABARD Employees
Pay Revision
- Effective date: November 1, 2022
- Average increase: Around 20% in pay and allowances
- Beneficiaries: About 3,800 serving and former employees across Group A, B and C
Pension Revision
Basic pension and family pension for NABARD retirees who were originally recruited by NABARD and retired before November 1, 2017 have been brought at par with ex-RBI NABARD retirees.
Financial Impact for NABARD
- Additional annual wage bill: ~₹170 crore
- Arrears payout: ~₹510 crore
- Pension arrears: ₹50.82 crore (one-time)
- Recurring pension outgo: ₹3.55 crore per month
- Beneficiaries: 269 pensioners and 457 family pensioners
Pension Revision for RBI Retirees
The government has also approved a revision of pension and family pension for RBI retirees, reaffirming its commitment to fair and sustainable retirement benefits.
Key features:
- Increase: 10% on basic pension plus dearness relief
- Effective from: November 1, 2022
- Effective enhancement factor: 1.43 times the basic pension
- Beneficiaries: 30,769 (22,580 pensioners and 8,189 family pensioners)
Financial Implication for RBI
- Total outgo: ₹2,696.82 crore
- ₹2,485.02 crore towards arrears
- ₹211.80 crore as recurring annual expenditure
Overall Impact
Across PSGICs, NABARD and RBI, the approved revisions will benefit:
- 46,322 employees
- 23,570 pensioners
- 23,260 family pensioners
The measures are expected to provide meaningful relief against rising living costs, ensuring dignity and financial security for employees and retirees of key financial institutions.
Government’s Commitment
The government reiterated its commitment to strengthening financial institutions that play a critical role in India’s inclusive and sustainable economic growth, while recognising the long and dedicated service of employees and pensioners.
Source: PIB Press Release (ID: 2217553)