New Delhi, Jan 23 (.) In a significant move aimed at boosting employee morale and strengthening social security for pensioners in the financial sector, 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).
The Government has also approved pension and family pension revisions for retirees of the Reserve Bank of India (RBI) and NABARD.
The decision underscores the Government’s continued emphasis on the financial well-being and social security of serving employees and pensioners, in recognition of their long and dedicated service to key financial institutions.
The wage revision for PSGIC employees will be effective from 1 August 2022. The overall increase in the wage bill has been approved at 12.41 per cent, with a 14 percent hike in existing Basic Pay and Dearness Allowance. A total of 43,247 employees across PSGICs will benefit from this revision.
As part of the revision, the Government has also approved an enhancement in the National Pension System (NPS) contribution from 10 per cent to 14 per cent for employees who joined after 1 April 2010, aimed at improving their long-term retirement security.
In addition, family pension has been revised to a uniform rate of 30 per cent, effective from the date of publication in the official gazette. This measure will benefit 14,615 family pensioners out of a total of 15,582 existing family pensioners.
The total financial implication of these measures for PSGICs is estimated at Rs 8,170.30 crore, comprising Rs 5,822.68 crore towards wage arrears, Rs 250.15 crore for enhanced NPS contribution, and Rs 2,097.47 crore for family pension revision.
The PSGICs covered under the decision 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).
For NABARD, the Government has approved a pay revision effective from 1 November 2022, providing an average 20 per cent increase in pay and allowances for all Group ‘A’, ‘B’, and ‘C’ employees. The decision will benefit around 3,800 serving and former employees.
The Government has also approved pension and family pension revision for NABARD retirees who were originally recruited by NABARD and retired before 1 November 2017, bringing their pensions at par with ex-RBI NABARD retirees.
The pay revision will result in an additional annual wage bill of approximately Rs 170 crore, along with arrears amounting to around Rs 510 crore. The pension revision will entail a one-time arrear payment of Rs 50.82 crore, and an additional monthly outgo of Rs 3.55 crore towards pension payments for 269 pensioners and 457 family pensioners.
The Government has also approved a revision in pension and family pension for RBI retirees, in line with its commitment to ensuring fair and sustainable retirement benefits.
Under the approved framework, pension and family pension will be enhanced by 10 per cent on basic pension plus dearness relief, effective from 1 November 2022.
This translates into an effective enhancement factor of 1.43 on basic pension, resulting in a substantial increase in monthly pension.
The revision will benefit 30,769 beneficiaries, including 22,580 pensioners and 8,189 family pensioners.
The total financial implication is estimated at Rs 2,696.82 crore, comprising Rs 2,485.02 crore towards arrears and a recurring annual expenditure of Rs 211.80 crore.
Overall, the approved measures are expected to benefit approximately 46,322 serving employees, 23,570 pensioners, and 23,260 family pensioners across PSGICs, NABARD, and RBI.
The Government stated that these steps will provide meaningful relief by helping beneficiaries better absorb rising living costs while maintaining a dignified standard of living and social status post-retirement.
The move reaffirms the Government’s commitment to strengthening financial institutions that play a pivotal role in India’s inclusive and sustainable economic growth.
. VK VAN .