The Centre has approved wage revision and pension revision for employees and pensioners of Public Sector General Insurance Companies (PSGICs), NABARD and the Reserve Bank of India (RBI). The decision is aimed at boosting employee morale and strengthening social security for pensioners in the financial sector, the Ministry of Finance said in a release on Friday.
The move reflects the government’s continued commitment and emphasis on social security and the financial well-being of employees and pensioners, in recognition of their long and dedicated professional service, the release said.
Overall, around 46,322 employees, 23,570 pensioners and 23,260 family pensioners are expected to benefit from the decision, the government said.
Wage and pension revision for PSGICs
“In a series of measures taken for boosting the morale of the serving employees as well as to ensure the social security of pensioners in the financial sector, the
Central Government has approved the wage revision for Public Sector General Insurance companies (PSGICs),” the release said.
The wage revision for the employees of PSGICs will be effective from 01.08.2022. The overall hike in wage bill shall be 12.41%, with an increase of 14% on existing Basic pay and Dearness allowance. A total of 43,247 PSGIC employees will benefit from this revision.
The revision also incorporates an enhancement in NPS contribution from 10% to 14% for a better future of employees who had joined after 01.04.2010.
Family pension has been revised at the uniform rate of 30% from the date of publication in the official gazette. This will benefit 14,615 family pensioners out of a total of 15,582 existing family pensioners, as a gesture of appreciation for their valuable contribution to the organisation.
The total financial outgo will be to the tune of ₹8,170.30 crore, comprising ₹5,822.68 crore towards arrears of wage revision, ₹250.15 crore for NPS, and ₹2,097.47 crore for family pension.
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).
Pay and pension revision for NABARD staff
The Government has also approved pay and pension revision for employees and pensioners of the National Bank for Agriculture and Rural Development (NABARD).
The pay revision, effective from 1st November, 2022, provides a hike in pay and allowances of about 20% for all Group ‘A’, ‘B’ and ‘C’ employees in NABARD. It would benefit around 3,800 serving and former employees.
Basic pension and family pension of NABARD retirees, who were originally recruited by NABARD and retired before 1st November, 2017, have now been brought on par with that of ex-RBI NABARD retirees.
The pay revision entails an additional annual wage bill of around ₹170 crore and a total payment of arrears amounting to around ₹510 crore. The pension revision would result in a one-time arrear payment of ₹50.82 crore and an additional ₹3.55 crore outgo in pension payments every month to 269 pensioners and 457 family pensioners in NABARD.
RBI pensioners to get enhanced benefits
The Government has approved the revision of pension and family pension for retirees of the Reserve Bank of India (RBI). The decision has been taken in line with the Government’s commitment to ensuring fair, adequate and sustainable retirement benefits for senior citizens and dependents.
Under the approved revision, pension and family pension shall be enhanced by 10% on basic pension plus dearness relief, with effect from 1st November, 2022. This would result in an effective enhancement of basic pension by a factor of 1.43 for all retirees, leading to a substantial improvement in their monthly pension.
The revision will benefit a total of 30,769 beneficiaries, including 22,580 pensioners and 8,189 family pensioners.
The total financial implication is estimated at ₹2,696.82 crore, which includes a one-time expenditure of ₹2,485.02 crore towards arrears and a recurring annual expenditure of ₹211.80 crore.
Overall impact
From the above measures, a total of approximately 46,322 employees, 23,570 pensioners and 23,260 family pensioners will benefit. The decision is expected to provide meaningful relief to employees of PSGICs and NABARD, and to pensioners and family pensioners of RBI and NABARD, helping them better absorb the rising cost of living while maintaining a dignified standard of living post-retirement.
The Government remains committed to strengthening institutions that play a pivotal role in the country’s inclusive and sustainable economic growth.