New Delhi, Jan 23: The Central Government has approved revisions in wages and pensions for employees and retirees of Public Sector General Insurance Companies (PSGICs), the National Bank for Agriculture and Rural Development (NABARD), and the Reserve Bank of India (RBI), officials said on Friday.
The move is expected to impact around 46,322 active employees and more than 46,000 pensioners and family pensioners across these institutions. Government sources described the decision as a reflection of its commitment to the social security and financial well being of staff and retirees.
For PSGIC employees, the wage revision, effective from August 1, 2022, includes a 12.41 per cent hike in the total wage bill and a 14 per cent increase in basic pay and dearness allowance. The National Pension System (NPS) contribution for employees joining after April 2010 has been raised from 10 per cent to 14 per cent, while family pensions have been standardized at 30 per cent.
NABARD staff will see a pay and allowance increase of around 20 per cent from November 1, 2022, applicable to all Group ‘A’, ‘B’, and ‘C’ employees. Pension benefits for NABARD retirees have also been aligned with former RBI-NABARD retirees.
RBI retirees will receive a 10 per cent increase in pensions and family pensions on basic pension plus dearness relief, as part of the government’s effort to provide fair and sustainable retirement benefits.
The financial implications of these revisions are substantial. PSGICs face an estimated total outlay of Rs 8,170.30 crore. NABARD’s wage revision will cost around Rs 170 crore annually with Rs 510 crore in arrears, while its pension update entails a one-time expense of Rs 50.82 crore. The RBI revision carries a total cost of Rs 2,696.82 crore, including Rs 2,485.02 crore in arrears and Rs 211.80 crore in recurring annual expenditure.
Officials noted that these measures aim to recognize employee contributions while ensuring adequate and timely retirement benefits for staff and their families.