The Centre on Friday announced that it has approved the long-pending wage revision for employees of Public Sector General Insurance Companies (PSGICs) and the National Bank for Agriculture and Rural Development (NABARD). It also cleared pension revisions for retired employees of the Reserve Bank of India (RBI) and NABARD. In total, around 46,322 employees, 23,570 pensioners and 23,260 family pensioners across these institutions are expected to benefit from the decision.
According to the official statement, the move "reflects the Government's continued commitment and emphasis on social security and the financial well-being of pensioners, in recognition of their long and dedicated professional service."
Highlights of the government's decision are outlined below:
Public Sector General Insurance Companies (PSGICs): Wage and Pension Revision Approved
The government has approved a wage revision for employees of Public Sector General Insurance Companies (PSGICs), effective August 1, 2022. The move will result in a 12.41% increase in the overall wage bill, including a 14% hike in basic pay and dearness allowance, benefiting around 43,247 employees.
The employer's contribution to the National Pension System has also been raised from 10% to 14% for staff who joined after April 1, 2010. In addition, family pension has been revised to a uniform 30%, benefiting 14,615 family pensioners. The total financial outgo is estimated at Rs 8,170.30 crore.
The PSGICs include 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), and Agricultural Insurance Company Ltd. (AICIL).
NABARD: Pay and Pension Revision Details
The government has approved a pay revision for NABARD employees, effective November 1, 2022. The revision provides a nearly 20% hike in pay and allowances for Group A, B and C employees, benefiting around 3,800 serving and former staff members.
Pension revision has also been cleared for NABARD retirees who were recruited by NABARD and retired before November 1, 2017, bringing their basic pension and family pension on par with former RBI-NABARD retirees.
The pay revision will add around Rs 170 crore annually to the wage bill and involve arrears of about Rs 510 crore. Pension revision will result in a one-time arrear payout of Rs 50.82 crore and an additional monthly outgo of Rs 3.55 crore.
RBI: Pension Revision Approved
The government has approved a revision of pension and family pension for retirees of the Reserve Bank of India (RBI), aimed at ensuring fair and sustainable retirement benefits. Under the decision, pension and family pension will be increased by 10% on basic pension plus dearness relief, effective from November 1, 2022.
This translates into an effective rise in basic pension by a factor of 1.43, significantly improving monthly payouts. A total of 30,769 beneficiaries, including 22,580 pensioners and 8,189 family pensioners, will benefit.
The financial impact is estimated at Rs 2,696.82 crore, comprising Rs 2,485.02 crore towards arrears and a recurring annual outgo of Rs 211.80 crore.
The approved measures will benefit around 46,322 employees, 23,570 pensioners and 23,260 family pensioners. The decision will offer relief to staff of PSGICs and NABARD, as well as pensioners and family pensioners of RBI and NABARD, helping them cope with rising living costs and maintain a dignified life after retirement. The government said it remains committed to strengthening institutions that support inclusive and sustainable economic growth.
