Good news for employees and pensioners of PSGICs, NABARD, RBI: Salary, pension hike approved

The central government has approved the wage revision for Public Sector General Insurance companies (PSGICs) and National Bank for Agriculture and Rural Development (NABARD), along with approving pension revision for retirees of Reserve Bank of India (RBI) and NABARD.

This move is aimed at boosting the morale of the serving employees and enhancing social security and the financial well-being of pensioners.

The revision will benefit nearly 46,322 employees, 23,570 pensioners and 23,260 family pensioners, providing meaningful relief to central government employees, helping them maintain a dignified standard of living, the Finance Ministry said in a release on Friday.

“The Government remains committed to strengthening institutions that play a pivotal role in the country's inclusive and sustainable economic growth,” it said.

Wage and pension revision for PSGICs

For PSGICs, the government has approved:

Wage revision: With effect from August 1, 2022, wages of PSGICs employees will be increased by 12.41%, with an increase of 14% on the existing basic pay and dearness allowance. This means that the effective increase in total wages would be 12.41%.

The wage revision will be paid in arrears, which means that employees will receive the revised wages retroactively from the effective date (August 1, 2022). Basically, you get the back pay for the months already worked under the old rates.

This will benefit a total of 43,247 PSGIC employees. Additionally, the National Pension System (NPS) contribution has also been raised to 14% from 10% for employees who joined after April 1, 2010.

“Family pension 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 Ministry of Finance said in a release on Friday, January 23.

Which PSGICs are covered under the wage revision?

PSGICs whose employees will receive higher salaries:

• 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)
• Agricultural Insurance Company Ltd. (AICIL)

Wage and pension revision for NABARD

Wage and pension revision for RBI

Simply put, the basic pension will now be 43% higher than before.

“Under the approved revision, pension and family pension shall be enhanced by 10% 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 Finance Ministry release said.