Centre Approves Wage & Pension Revision for PSGICs, NABARD and RBI

The Central Government has approved wage and pension revisions for employees and pensioners of Public Sector General Insurance Companies (PSGICs), NABARD, and the Reserve Bank of India (RBI). This decision will benefit over 46,000 serving employees and nearly 23,000 pensioners, strengthening financial security across key financial institutions.

Centre Approves Wage & Pension Revision for PSGICs

The approved revisions focus on wage enhancement, pension alignment, and improved retirement benefits. The move reflects the government’s commitment to addressing inflationary pressures and ensuring social security for employees in the financial sector. The approval notice is given below.

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Wage Revision for Public Sector General Insurance Companies (PSGICs)

The wage revision for PSGIC employees is effective from 1 August 2022, with an overall 12.41% increase in the wage bill. This includes a 14% hike on basic pay and dearness allowance, impacting 43,247 employees working in insurers such as National Insurance Company Ltd., New India Assurance, United India Insurance, and Oriental Insurance.

Additionally, NPS contributions for post-2010 recruits have been increased from 10% to 14%, while family pension has been uniformly revised to 30%, benefiting 14,615 pensioners.

NABARD Pay and Pension Revision Provisions

NABARD employees across Group A, B, and C cadres will receive a 20% hike in pay and allowances, effective from 1 November 2022. This revision benefits around 3,800 serving and retired employees.

For pensioners recruited before 2017, NABARD pensions have now been aligned with ex-RBI pension levels. The annual wage bill will rise by ₹170 crore, with ₹510 crore payable as arrears. A one-time pension arrear of ₹50.82 crore will benefit 269 pensioners and 457 family pensioners.

RBI Pension Enhancement for Retirees

RBI retirees will receive a 10% enhancement on basic pension plus dearness relief, effective from 1 November 2022. This effectively increases the basic pension by 1.43 times. The revision benefits 22,580 pensioners and 8,189 family pensioners, taking the total number of beneficiaries to 30,769.

Overall Financial Impact on the Exchequer

The total financial outgo for PSGICs amounts to ₹8,170.30 crore, which includes ₹5,822.68 crore in arrears, ₹250.15 crore towards NPS contributions, and ₹2,097.47 crore for family pension revisions. For RBI, the pension revision involves a total cost of ₹2,696.82 crore, including ₹2,485.02 crore in arrears and a recurring annual burden of ₹211.80 crore.

Significance of the Decision

These revisions highlight the government’s focus on social security, employee welfare, and pension sustainability, especially amid rising living costs. The move is expected to boost morale and provide long-term financial stability to employees and retirees in the financial sector.