Government Clears Pay and Pension Hike for Insurance Staff, NABARD, and RBI Retirees

The Central Government has finally approved the long-awaited wage and pension revision for employees and retirees of public sector insurance companies, NABARD, and the Reserve Bank of India. This decision will bring financial relief to thousands of serving staff, pensioners, and family pensioners across these key institutions.

Big Reliefs for Public Sector General Insurance Employees

Employees working in Public Sector General Insurance Companies (PSGICs) will now receive revised salaries with effect from August 1, 2022. The government has approved an overall 12.41 per cent increase in the wage bill, which includes a 14 per cent rise in basic pay and dearness allowance.

Around 43,247 employees from these insurance companies will benefit from this decision. The move ends years of waiting for a salary update and improves take-home pay significantly.

Higher NPS Contribution for Newer Employees

The revision also brings good news for employees who joined after April 1, 2010. The government has increased its contribution to the National Pension System (NPS) from 10 per cent to 14 per cent, helping employees build a stronger retirement fund.

Family Pension Increased to a Uniform Rate

Family pension has been revised to a uniform rate of 30 per cent. This change will benefit 14,615 family pensioners and comes into effect from the date the notification is published in the official gazette.

Total Financial Impact of Insurance Sector Revision

The total cost of this revision is estimated at Rs 8,170.30 crore. This includes payments for salary arrears, higher NPS contribution, and revised family pensions.

List of Insurance Companies Covered

The salary revision applies to employees of the following public sector insurance companies:

• National Insurance Company Limited
• New India Assurance Company Limited
• Oriental Insurance Company Limited
• United India Insurance Company Limited
• General Insurance Corporation of India
• Agricultural Insurance Company Limited

NABARD Employees to Get Higher Pay and Allowances

The government has also approved a pay hike of around 20 per cent for NABARD employees. This revision is effective from November 1, 2022 and applies to Group A, B, and C employees.

Nearly 3,800 serving and retired NABARD employees will benefit from the revised pay structure.

Pension Parity for Older NABARD Retires

NABARD pensioners who retired before November 1, 2017 will now receive pensions at par with retired RBI-NABARD employees. This step ensures fairness and removes long-standing disparities.

Financial Cost of NABARD Pay and Pension Revision

The revised pay structure will add around Rs. 170 crore annually to NABARD’s wage bill. Arrears payments will total approximately Rs 510 crore. Pension revision will involve a one-time payment of Rs 50.82 crore and a monthly increase in pension expenses.

RBI Pensioners Get Major Pension Boost

Retired employees of the Reserve Bank of India (RBI) will also benefit from a pension revision. Their pension and family pension will increase by 10 per cent, effective from November 1, 2022.

This change effectively raises the basic pension by 1.43 times, leading to a noticeable rise in monthly pension income.

Thousands of RBI Retires to Benefit

The RBI pension revision will benefit 30,769 people, including pensioners and family pensioners. The total financial impact is estimated at Rs 2,696.82 crore, covering arrears and future annual payments.

A Long-Awaited Decision Bringing Financial Stability

This comprehensive pay and pension revision reflects the government’s effort to support public sector employees and retirees. By addressing long-pending demands, the move improves financial security, boosts morale, and ensures dignity for pensioners across insurance companies, NABARD, and RBI.