Major salary and pension hike announced for insurance, RBI and NABARD employees

New Delhi: In a major relief to thousands of employees and retirees, the Centre on Friday approved long-pending wage revisions for public sector general insurance companies (PSGICs) and NABARD, along with pension revision for RBI and National Bank for Agriculture and Rural Development (NABARD) retirees, the Finance Ministry said.

The decision will benefit over 46,000 employees, 23,500 pensioners and 23,000 family pensioners.

PSGIC employees get 14% basic pay hike

The government approved wage revision for employees of six public sector general insurance companies, effective from August 1, 2022.

“The overall hike in wage bill shall be 12.41 per cent with an increase of 14 per cent on existing Basic pay and Dearness allowance,” the Finance Ministry said, adding that 43,247 employees will benefit.

The revision also raises the NPS contribution from 10% to 14% for employees who joined after April 1, 2010.

Family pension has been fixed at a uniform 30% rate, benefiting 14,615 family pensioners.

The total outgo for PSGICs is estimated at ₹8,170 crore, including arrears and pension payments.

The companies covered include:

• National Insurance Company (NICL)
• New India Assurance (NIACL)
• Oriental Insurance (OICL)
• United India Insurance (UIICL)
• General Insurance Corporation (GIC)
• Agricultural Insurance Company (AICIL)

NABARD employees get 20% pay hike

For NABARD, the government approved a 20% hike in pay and allowances for Group A, B and C employees, effective November 1, 2022, benefiting around 3,800 employees and retirees.

The move will add around ₹170 crore annually to the wage bill, with arrears of nearly ₹510 crore.

Pensions of NABARD retirees recruited directly by the bank and retired before November 2017 will now be brought on par with RBI retirees, the government said.

RBI retirees get 10% pension hike

The Centre has also approved a 10% increase in pension and family pension for RBI retirees, effective from November 1, 2022.

This will benefit 30,769 people, including 22,580 pensioners and 8,189 family pensioners, with a total financial impact of ₹2,696.82 crore, including arrears and annual payouts.

IANS inputs