The Central government has approved wage revisions for employees of Public Sector General Insurance Companies (PSGICs) and the National Bank for Agriculture and Rural Development (NABARD), along with pension revisions for retirees of the Reserve Bank of India (RBI) and NABARD.
According to a ministry of finance statement, the revisions will benefit 46,322 employees, 23,570 pensioners, and 23,260 family pensioners, with a total estimated financial implication of ₹11,601.5 crore.
“This measure will provide meaningful relief to the employees of PSGICs and NABARD, and to pensioners/family pensioners of RBI and NABARD, by enabling them to better absorb the cost of living while maintaining a dignified standard of living and social status post-retirement,” the ministry said.
Major Gains
The wage revision for the employees of public sector general insurance companies will be effective from August, 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 April 4, 2010.
The ministry further said the family pension for PSGICs pensioners has been revised at the uniform rate of 30% from the date of publication in the official gazette, which 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 will lead to the total outgo of Rs 8170.30 crore. Of which, Rs 5822.68 crore towards the arrears of wage revision, Rs 250.15 crore for NPS and Rs 2097.47 for family pension.
The PSGICs include National Insurance Company, New India Assurance Company, Oriental Insurance), United India Insurance Company, General Insurance Corporation of India and Agricultural Insurance Company.
RBI and Family Pension Updates
For retirees of RBI, pension and family pension shall be enhanced by 10% on basic pension plus dearness relief, with effect from November 1, 2022, the ministry said. “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, comprising 22,580 pensioners and 8,189 family pensioners,” the statement read.
Similarly, the 20% hike in pay and allowances for NABARD employees of all groups will be effective from November 1, 2022.