GoI Approves Wage Revision and Pension Revision for PSGICs, NABARD and RBI

The Central Government has approved wage revision and pension revision for employees and pensioners in key financial institutions, including Public Sector General Insurance Companies (PSGICs), NABARD, and Reserve Bank of India (RBI). This move is being seen as a significant step towards boosting employee morale, ensuring improved retirement security, and strengthening social welfare measures in the financial sector.

The decision highlights the Government’s continued focus on social security, fair compensation, and the financial well-being of pensioners, especially those who have dedicated decades of service to India’s economic and financial institutions.

What Has Been Approved?

The announcement covers three major areas:

• Wage revision for employees of PSGICs
• Pay revision for employees of NABARD
• Pension revision for retirees of RBI and NABARD
• Family pension revision for PSGICs

This policy intervention is important not just for beneficiaries but also for government exam aspirants, as it touches multiple topics like social security, financial sector reforms, public sector compensation, and retirement benefits.

Wage Revision for PSGIC Employees (Effective from 1 August 2022)

Key Details

The wage revision for employees of Public Sector General Insurance Companies (PSGICs) will be effective from:

01 August 2022

Overall wage hike

• Overall hike in wage bill: 12.41%
• Increase: 14% on existing Basic Pay + Dearness Allowance (DA)

Beneficiaries

• Total employees benefiting: 43,247 PSGIC employees

This revision provides substantial salary improvement, helping employees manage inflation and rising living costs.

Enhancement in NPS Contribution for PSGIC Employees

A major welfare step in the revision package is the enhancement of National Pension System (NPS) contribution:

• Earlier: 10%
• Now: 14%

Who benefits?

This applies to employees who joined after: 01 April 2010

This is aimed at creating stronger long-term retirement security and better future social safety for younger employees.

Family Pension Revision for PSGICs

To support dependents of deceased employees, the Government has approved a major update in the family pension structure.

Revised family pension rate

• Uniform rate of 30%
• Effective from the date of publication in the official gazette

Beneficiaries

• Benefiting family pensioners: 14,615
• Total existing family pensioners: 15,582

This is being viewed as a gesture of appreciation and support for families linked to the public insurance system.

Financial Implication for PSGICs

The total financial outgo is estimated at: ₹8,170.30 crore

Break-up:

• ₹5,822.68 crore towards wage revision arrears
• ₹250.15 crore for increased NPS contribution
• ₹2,097.47 crore for family pension revision

PSGICs Covered Under the Wage Revision

The wage revision applies to employees working in the following Public Sector General Insurance Companies:

• 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)

NABARD Pay Revision (Effective from 1 November 2022)

Key Details

Pay revision for NABARD employees is effective from: 01 November 2022

Increase in pay and allowances

• Hike: About 20%
• Applicable to: Group A, B and C employees

Beneficiaries

• Approx beneficiaries: 3,800 serving and former employees

NABARD Pension Revision: Who is Covered?

The Government has approved pension revision for NABARD retirees who:

• Were originally recruited by NABARD
• Retired before 01 November 2017

Key Change

Their basic pension/family pension has been brought on par with ex-RBI NABARD retirees. This ensures parity and removes long-standing differences in pension benefits.

Financial Implication for NABARD

Pay the revision cost

• Additional annual wage bill: approx ₹170 crore
• Total arrears: approx ₹510 crore

Pension revision cost

• One-time arrear payment: ₹50.82 crore
• Additional monthly pension outgo: ₹3.55 crore

Beneficiaries:

1. 269 pensioners
2. 457 family pensioners

RBI Pension Revision (Effective from 1 November 2022)

The Government has approved a revision in pension and family pension for RBI retirees.

Key Revision

• Pension + family pension increased by 10%
• Calculation: 10% on basic pension + dearness relief
• Effective date: 01 November 2022

Effective pension enhancement

The revision results in an effective increase of basic pension by a factor of: 1.43 times

This significantly boosts monthly pension payments for beneficiaries.

RBI Pension Revision Beneficiaries

Total beneficiaries: 30,769

Break-up:

• 22,580 pensioners
• 8,189 family pensioners

Financial Implications for RBI Pension Revision

Total financial implication:

₹2,696.82 crore

Break-up:

• ₹2,485.02 crore (one-time arrears)
• ₹211.80 crore (recurring annual expenditure)

Overall Beneficiaries (PSGICs + NABARD + RBI)

As per government estimates:

• Employees benefiting: ~46,322
• Pensioners benefiting: ~23,570
• Family pensioners benefiting: ~23,260

This makes it one of the most comprehensive compensation and pension reforms in recent times for the financial sector.