Centre clears wage, pension revision for PSGICs, Nabard and RBI staff

Centre approves wage hikes for public sector insurers and Nabard, and pension revisions for RBI and Nabard retirees, benefiting over 93,000 employees and pensioners

The Centre 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 and family pension revision for retirees of the Reserve Bank of India (RBI) and Nabard, a move expected to benefit over 93,000 employees and pensioners across key financial institutions.

 

According to an official statement, the decision reflects the government’s commitment to social security and the financial well-being of serving employees and pensioners in the financial sector.

 

For PSGICs, the wage revision will be effective from August 1, 2022, with an overall increase of 12.41 per cent in the wage bill, including a 14 per cent increase in basic pay and dearness allowance.

 

 

Around 43,247 employees will benefit from the revision. The government has also approved an increase in 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 for PSGICs has been revised to a uniform rate of 30 per cent from the date of notification in the Official Gazette, benefiting 14,615 family pensioners. The total financial implication for PSGICs is estimated at₹8,170.30 crore, including arrears, enhanced NPS contribution and family pension payouts.

 

The PSGICs covered under the decision 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 Agricultural Insurance Company Ltd.

 

For NABARD, the pay revision will be effective from November 1, 2022, with an average increase of about 20 per cent in pay and allowances for Group A, B and C employees, benefiting around 3,800 serving and former employees. The revision will lead to an additional annual wage bill of about₹170 crore, with arrears amounting to nearly₹510 crore.

 

The government has also approved pension revision for NABARD retirees who were recruited by the institution and retired before November 1, 2017, bringing their basic pension and family pension on par with ex-RBI NABARD retirees. This will result in a one-time arrear payout of₹50.82 crore and an additional monthly pension outgo of₹3.55 crore for 269 pensioners and 457 family pensioners.

 

Separately, pension and family pension of RBI retirees have been revised with effect from November 1, 2022. Under the revised structure, pension and family pension will be enhanced by 10 per cent on basic pension plus dearness relief, resulting in an effective increase in basic pension by a factor of 1.43. 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 are expected to benefit approximately 46,322 employees, 23,570 pensioners and 23,260 family pensioners, providing relief amid rising living costs and ensuring a dignified post-retirement life, the government said.