Government of India Approves Wage and Pension Revision for PSGICs, NABARD, and RBI

Key facts

• The Government of India has approved a 12.41% hike in the wage bill for Public Sector General Insurance companies (PSGICs), effective from August 2022.
• The revision for PSGICs incorporates a uniform family pension rate of 30% and an increase in NPS contribution from 10% to 14% for employees who joined after April 2010.
• The total financial implication for the PSGIC wage and pension revision is approximately ₹8,170 crore, benefiting 46,322 employees, 23,570 pensioners, and 23,260 family pensioners.
• The PSGICs covered under the revision include National Insurance Company Ltd (NICL), New India Assurance Company (NIACL), Oriental Insurance Company (OICL), United India Insurance Company (UIICL), General Insurance Corporation of India (GIC), and Agriculture Insurance Company of India Ltd (AICIL).
• The National Bank for Agriculture and Rural Development (NABARD) will implement a hike of approximately 20% in pay and allowances for all Group 'A', 'B', and 'C' employees.
• The government has approved a 10% enhancement in pension and family pension on basic pension plus dearness relief for Reserve Bank of India (RBI) retirees, effective from November 1, 2022.
• The RBI pension revision results in an effective enhancement of the basic pension by a factor of 1.43 for 30,769 beneficiaries, including 22,580 pensioners and 8,189 family pensioners.
• The NABARD revision is expected to benefit approximately 3,800 serving and former employees.