In a major boost for public sector employees, the Central Government has greenlit significant salary and pension revisions for workers at Public Sector General Insurance Companies (PSGIC), the National Bank for Agriculture and Rural Development (NABARD), and retired staff of the Reserve Bank of India (RBI). This decision impacts over 90,000 employees and pensioners, promising enhanced financial security and morale in key financial institutions.
The Finance Ministry announced the approvals on Friday, framing them as part of ongoing efforts to uplift staff motivation and ensure social security for retirees. For PSGIC employees, the salary revision kicks in from August 1, 2022, with a total hike of 12.41 percent, including a 14 percent increase in basic pay and dearness allowance. This will benefit 43,247 active workers, while contributions to the National Pension System (NPS) rise from 10 to 14 percent, securing futures for those hired post-April 2010.
Family pensioners under PSGIC stand to gain too, with a uniform 30 percent revision effective from the official gazette publication date. Out of 15,582 family pensioners, 14,615 will receive this uplift, acknowledging their invaluable contributions. The total financial outlay for PSGIC measures tallies around Rs 8,170.30 crore, broken down into Rs 5,822.68 crore for salary arrears, Rs 250.15 crore for NPS, and Rs 2,097.47 crore for family pensions.
PSGIC encompasses major players like National Insurance Company Limited, New India Assurance, Oriental Insurance, United India Insurance, General Insurance Corporation of India, and Agriculture Insurance Company of India. Meanwhile, NABARD staff across Groups A, B, and C see an approximate 20 percent salary and allowance boost from November 1, 2022, aiding about 3,800 serving and former employees. This adds Rs 170 crore annually to the wage bill and Rs 510 crore in arrears, plus pension enhancements for 269 pensioners and 457 family pensioners totaling Rs 3.55 crore monthly extra.
RBI’s retired employees receive a 10 percent hike in basic pension and dearness relief from November 1, 2022, effectively multiplying base pensions by 1.43 times for 30,769 beneficiaries, including 22,580 pensioners and 8,189 family pensioners. The estimated cost is Rs 2,696.82 crore, with Rs 2,485.02 crore as one-time arrears and Rs 211.80 crore recurring yearly.
These revisions underscore the government’s commitment to fair compensation in public financial services, stabilizing livelihoods amid economic pressures and reinforcing institutional strength for national development.
