The central government has approved long-pending wage and pension revisions for 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), providing financial relief to over 93,000 beneficiaries across the financial sector.
“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 long-pending wage revision for Public Sector General Insurance companies (PSGICs) and National Bank for Agriculture and Rural Development (NABARD). Additionally, it has approved pension revision for retirees
of Reserve Bank of India (RBI) and NABARD,” the finance ministry said in a statement on Friday, January 23.
The decision 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, it added.
In total, around 46,322 employees, 23,570 pensioners, and 23,260 family pensioners are expected to benefit from the measures, according to the statement.
Wage Revision for Public Sector General Insurance Companies
The government has approved wage revision for employees of PSGICs with effect from August 1, 2022. The overall hike in the wage bill has been pegged at 12.41%, including a 14% increase in existing basic pay and dearness allowance.
About 43,247 employees of PSGICs will benefit from the revision. In addition, the employer’s contribution under the National Pension System (NPS) for employees who joined after April 1, 2010, has been increased from 10% to 14%, strengthening long-term retirement savings.
Family pension under PSGICs has also been revised to a uniform rate of 30%, effective from the date of notification in the official gazette. This move will benefit 14,615 family pensioners.
The total financial outgo for PSGIC-related revisions is estimated at Rs 8,170.30 crore, which includes arrears of wage revision, higher NPS contributions, and family pension payouts.
The PSGICs covered under this decision include National Insurance Company Ltd, New India Assurance Company Ltd, Oriental Insurance Company Ltd, United India Insurance Company Ltd, General Insurance Corporation of India, and Agricultural Insurance Company Ltd.
NABARD Pay and Pension Revision
For NABARD, the government has approved a pay revision effective November 1, 2022, resulting in an average 20 percent increase in pay and allowances for Group A, B and C employees. Around 3,800 serving and former employees are set to benefit.
The pay revision will lead to an additional annual wage bill of about Rs 170 crore, with arrears estimated at Rs 510 crore.
In addition, pension and family pension of NABARD retirees who were originally recruited by NABARD and retired before November 1, 2017, have been revised and brought on par with ex-RBI NABARD retirees. This pension revision will entail a one-time arrear payout of Rs 50.82 crore and an additional monthly outgo of Rs 3.55 crore, benefiting 269 pensioners and 457 family pensioners.
RBI Pension Revision Approved
The government has also cleared a revision of pension and family pension for RBI retirees, effective November 1, 2022.
Under the approved formula, pension and family pension will be enhanced by 10% on basic pension plus dearness relief, resulting in an effective increase of basic pension by a factor of 1.43. The move is expected to significantly improve monthly pension payouts.
“Under the approved revision, pension and family pension shall be enhanced by 10 per cent 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, comprising 22,580 pensioners and 8,189 family pensioners,” the ministry said.
The total financial implication is estimated at Rs 2,696.82 crore, which includes a one-time expenditure of Rs 2,485.02 crore towards arrears and a recurring annual expenditure of Rs 211.80 crore, it added.
“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 government remains committed to strengthening institutions that play a pivotal role in the country’s inclusive and sustainable economic growth,” the ministry stated.
