India clears wage and pension revisions for insurance staff, NABARD and RBI retirees

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), and pension revisions for retirees of the Reserve Bank of India (RBI) and NABARD, according to a statement issued by the Press Information Bureau (PIB) on January 23.

The decision will benefit around 46,322 employees, 23,570 pensioners and 23,260 family pensioners, the Finance Ministry said.

Wage revision for PSGIC employees from August 2022

For PSGICs, the wage revision will take effect from August 1, 2022. The government said the overall wage bill will rise by 12.41%, including a 14% increase on existing basic pay and dearness allowance.

The revision will cover 43,247 employees across PSGICs. It also increases the employer contribution under the National Pension System (NPS) from 10% to 14% for employees who joined after April 1, 2010.

The government estimated the financial outgo for PSGIC-related revisions at ₹8,170.30 crore, including ₹5,822.68 crore towards arrears, ₹250.15 crore for NPS and ₹2,097.47 crore for family pension revision.

PSGICs include National Insurance Company, New India Assurance, Oriental Insurance, United India Insurance, General Insurance Corporation of India, and Agricultural Insurance Company of India.

Family pension for PSGICs revised to 30%

The government also revised the family pension for PSGICs at a uniform rate of 30%, effective from the date of publication in the official gazette. It said the move will benefit 14,615 family pensioners out of a total 15,582 existing family pensioners.

NABARD pay revision from November 2022

For NABARD, the pay revision will be effective from November 1, 2022, with a hike in pay and allowances of around 20% for employees across Group A, B and C categories.

The revision is expected to benefit around 3,800 serving and former employees. The Finance Ministry estimated the additional annual wage bill at around ₹170 crore, with arrears totalling around ₹510 crore.

NABARD pension revision for pre-2017 retirees

NABARD has also received approval for pension and family pension revision for retirees originally recruited by NABARD who retired before November 1, 2017. The revision brings their pension in line with ex-RBI NABARD retirees.

The pension revision will lead to a one-time arrear payment of ₹50.82 crore, along with an additional monthly pension outgo of ₹3.55 crore to 269 pensioners and 457 family pensioners, the government said.

RBI pension enhanced by 10% from November 2022

The government approved a pension and family pension revision for RBI retirees, with a 10% increase on basic pension plus dearness relief, effective from November 1, 2022.

The revision will benefit 30,769 beneficiaries, including 22,580 pensioners and 8,189 family pensioners. The government said the change results in an effective enhancement of basic pension by a factor of 1.43 for all retirees.

The total financial implication for RBI pension revision is estimated at ₹2,696.82 crore, including ₹2,485.02 crore as one-time arrears and ₹211.80 crore as recurring annual expenditure.

The Finance Ministry said the revisions aim to provide meaningful relief to employees and pensioners by helping them manage cost-of-living pressures while maintaining a dignified standard of living after retirement.