The Central government has approved a major set of wage and pension revisions covering 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 decision is aimed at improving financial security and social welfare for serving employees as well as retirees in key financial institutions.
For employees of Public Sector General Insurance Companies, the wage revision will be implemented with retrospective effect from August 1, 2022. The revision results in an overall increase of 12.41 per cent in the wage bill, including a 14 per cent rise in basic pay and dearness allowance. Around 43,247 employees of PSGICs are expected to benefit from the revision. The government has also approved an increase in the National Pension System (NPS) contribution from 10 per cent to 14 per cent for employees who joined service after April 1, 2010.
In addition, family pension for PSGIC retirees has been revised to a uniform rate of 30 per cent, effective from the date of notification in the official gazette. This change will benefit 14,615 family pensioners. The total financial outgo on account of wage revision, NPS enhancement and family pension revision for PSGICs is estimated at Rs 8,170.30 crore.
The PSGICs covered under the decision include National Insurance Company Limited, New India Assurance Company Limited, Oriental Insurance Company Limited, United India Insurance Company Limited, General Insurance Corporation of India, and Agricultural Insurance Company Limited.
In the case of NABARD, the government has approved a pay revision effective from November 1, 2022. The revision provides an increase of around 20 per cent in pay and allowances for Group ‘A’, ‘B’ and ‘C’ employees. Nearly 3,800 serving and retired employees of NABARD will benefit from this measure. The pay revision is expected to add approximately Rs 170 crore annually to the wage bill, with arrears amounting to about Rs 510 crore.
The government has also approved a revision of pension and family pension for NABARD retirees who were originally recruited by NABARD and retired before November 1, 2017. These pensioners will now be brought at par with former RBI personnel deputed to NABARD. The pension revision will involve a one-time arrear payment of Rs 50.82 crore and an additional monthly pension outgo of Rs 3.55 crore.
For retirees of the Reserve Bank of India, the government has approved a pension and family pension revision with effect from November 1, 2022. Under the revised structure, pension and family pension have been increased by 10 per cent on basic pension plus dearness relief. This translates into an effective enhancement of basic pension by a factor of 1.43. The revision will benefit 30,769 individuals, including 22,580 pensioners and 8,189 family pensioners. The total financial implication for the RBI pension revision is estimated at Rs 2,696.82 crore.
Overall, the government’s decision is expected to benefit around 46,322 employees, 23,570 pensioners and 23,260 family pensioners across PSGICs, NABARD and RBI. The measures are aimed at helping beneficiaries cope with rising living costs while ensuring financial stability and dignity after retirement.
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