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Govt Approves Pay & Pension Hikes for PSGICs, NABARD, RBI Staff & Retirees

The Central Government has sanctioned significant wage and pension revisions for employees and retirees of Public Sector General Insurance Companies, NABARD, and the Reserve Bank of India. The move is set to benefit approximately 46,322 employees and over 46,000 pensioners across these key financial institutions. Revisions include a 12.41% increase in the wage bill for insurers, a 20% pay hike for NABARD staff, and a 10% pension enhancement for RBI retirees. The government estimates the total financial implication of these measures to run into several thousand crores of rupees.

Key Points: Govt Approves Wage, Pension Hike for PSGICs, NABARD, RBI

  • 12.41% wage bill hike for PSGICs
  • 20% pay hike for NABARD employees
  • 10% pension boost for RBI retirees
  • NPS contribution raised from 10% to 14%
2 min read

Central Government approves wage and pension hikes for PSGICs, NABARD and RBI

Central govt approves wage & pension revisions for PSGICs, NABARD & RBI employees, benefiting over 92,000 people with hikes up to 20%.

"reflects Government's continued commitment and emphasis on social security and financial well-being of employees and pensioners. - Government Statement"

New Delhi, January 23

The Central Government has officially approved wage and pension revisions for employees and retirees of Public Sector General Insurance Companies, the National Bank for Agriculture and Rural Development, and the Reserve Bank of India.

This decision is expected to benefit approximately 46,322 employees and over 46,000 pensioners and family pensioners across these institutions. According to the government, the move "reflects Government's continued commitment and emphasis on social security and financial well-being of employees and pensioners."

For those working in Public Sector General Insurance Companies, the wage revision will be effective from August 1, 2022. This update includes a 12.41 per cent hike in the total wage bill and a 14 per cent increase in basic pay and dearness allowance. Additionally, the government has increased the National Pension System (NPS) contribution from 10 per cent to 14 per cent for employees who joined after April 2010. Family pensions for this sector have also been revised to a uniform rate of 30 per cent, a change described as a "gesture of appreciation for their valuable contribution to the organisation."

NABARD employees will see a pay and allowance increase of approximately 20 per cent, effective from November 1, 2022. This revision applies to all Group 'A', 'B', and 'C' employees. Furthermore, the government has brought the pensions of NABARD retirees in line with those of former RBI-NABARD retirees.

At the Reserve Bank of India, retirees will see their pension and family pension enhanced by 10 per cent on basic pension plus dearness relief. The government stated that this specific decision was "taken in line with the government's commitment to ensuring fair, adequate and sustainable retirement benefits for senior citizens and dependants."

The financial implications of these revisions involve a significant expenditure across all three institutions, totalling several thousand crores in arrears and recurring costs.

For the Public Sector General Insurance companies, the total outgo is estimated at Rs 8,170.30 crore. The pay revision at NABARD entails an additional annual wage bill of approximately Rs 170 crore and total arrears of about Rs 510 crore, while its pension revision requires a one-time payment of Rs 50.82 crore. Finally, the revision for the Reserve Bank of India has an estimated total financial implication of 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."

- ANI

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Reader Comments

S
Sarah B
While it's good for the employees, I hope this doesn't lead to higher premiums for us policyholders. The article mentions a huge outgo of Rs 8,170 crore for insurance companies. That cost has to come from somewhere.
P
Priyanka N
Finally some good news for the pensioners! My father retired from an insurance company, and with rising prices, this revision will bring much-needed relief. The uniform 30% family pension is a humane gesture. Thank you.
A
Aman W
Respectfully, I have to ask - what about the employees of other PSUs and state government staff? The wage revision seems selective. The arrears from 2022 are also a long delay. The intent is good, but implementation should be faster and more uniform.
K
Karthik V
NABARD getting a 20% hike is significant. This institution is crucial for rural development and agriculture. Well-compensated employees will be more motivated to work for the betterment of our farmers. A step in the right direction.
M
Michael C
The financial implications are massive—thousands of crores. As a taxpayer, I support fair wages, but I also hope there is strict oversight to ensure these institutions remain financially healthy and don't require a bailout later.

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