SRINAGAR: The Central Government on Friday approved wage revision for employees of public sector general insurance companies and the National Bank for Agriculture and Rural Development, along with pension revision for retirees of the Reserve Bank of India and NABARD, a move expected to benefit more than 93,000 employees and pensioners across the financial sector.
The decision, officials said, reflects the government’s emphasis on social security and financial well-being of serving employees, pensioners and family pensioners in key financial institutions.
According to official details, the approval will benefit around 46,322 employees, 23,570 pensioners and 23,260 family pensioners. The measures include wage revision for Public Sector General Insurance Companies (PSGICs) and NABARD, and pension and family pension revision for retirees of Reserve Bank of India and National Bank for Agriculture and Rural Development.
For PSGICs, wage revision for employees will be effective from August 01, 2022. The overall wage bill will rise by 12.41 percent, including a 14 percent increase in basic pay and dearness allowance. A total of 43,247 employees of PSGICs will benefit from the revision. The decision also enhances the National Pension System contribution from 10 percent to 14 percent for employees who joined after April 01, 2010.
Family pension for PSGICs has been revised to a uniform rate of 30 percent from the date of publication in the official gazette. This will benefit 14,615 family pensioners out of 15,582 existing beneficiaries. The total financial outgo for PSGIC-related measures is estimated at Rs 8,170.30 crore, including Rs 5,822.68 crore towards wage arrears, Rs 250.15 crore for NPS contributions and Rs 2,097.47 crore for family pension.
The PSGICs covered under the decision include National Insurance Company Limited, New India Assurance Company Limited, Oriental Insurance Company Limited, United India Insurance Company Limited, General Insurance Corporation of India and Agricultural Insurance Company Limited.
For NABARD, pay revision for Group A, B and C employees will be effective from November 01, 2022, with an increase of about 20 percent in pay and allowances. The revision will benefit around 3,800 serving and former employees. Pension and family pension of NABARD retirees who were recruited directly by NABARD and retired before November 01, 2017, have also been brought at par with ex-RBI NABARD retirees.
The NABARD pay revision will result in an additional annual wage bill of around Rs 170 crore, with arrears amounting to about Rs 510 crore. Pension revision will entail a one-time arrear payment of Rs 50.82 crore and an additional monthly outgo of Rs 3.55 crore, benefiting 269 pensioners and 457 family pensioners.
The government has also approved pension and family pension revision for RBI retirees. Under the decision, pension and family pension will be enhanced by 10 percent on basic pension plus dearness relief, with effect from November 01, 2022. This will lead to an effective enhancement of basic pension by a factor of 1.43 and benefit 30,769 beneficiaries, including 22,580 pensioners and 8,189 family pensioners.
The total financial implication for RBI pension revision is estimated at Rs 2,696.82 crore, comprising a one-time expenditure of Rs 2,485.02 crore towards arrears and a recurring annual outgo of Rs 211.80 crore.
Officials said the measures are aimed at providing relief against rising cost of living and ensuring a dignified standard of living for employees and pensioners, while reinforcing the government’s commitment to institutions critical for inclusive and sustainable economic growth.
