Central Government Approves Wage and Pension Hikes for PSGICs, NABARD and RBI
The Central Government has officially approved wage and pension revisions 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). The move is expected to benefit around 46,322 employees and over 46,000 pensioners and family pensioners across these institutions. The government said the decision reflects its continued commitment to social security and the financial well-being of employees and retirees.
PSGICs: Wage Revision, Higher NPS Contribution and Family Pension Boost
For employees of Public Sector General Insurance Companies, the wage revision will be effective from August 1, 2022. The revision includes a 12.41% increase in the total wage bill and a 14% hike in basic pay and dearness allowance. The government has also raised its NPS contribution from 10% to 14% for employees who joined after April 2010. In addition, family pension has been revised to a uniform rate of 30%, recognising the contribution of employees to the sector.
NABARD Employees and Retirees Get Pay and Pension Parity
NABARD employees will receive a pay and allowance hike of around 20%, effective November 1, 2022, covering Group ‘A’, ‘B’ and ‘C’ employees. Importantly, pensions of NABARD retirees have now been aligned with those of former RBI–NABARD retirees, ensuring parity and addressing long-standing demands related to retirement benefits.
RBI Pension Revision and Financial Impact
At the Reserve Bank of India, retirees will see a 10% increase in basic pension plus dearness relief for both pension and family pension. The government said the decision is in line with its goal of ensuring fair, adequate and sustainable retirement benefits. The financial impact is significant: ₹8,170.30 crore for PSGICs, about ₹730 crore for NABARD (including arrears and pension costs), and ₹2,696.82 crore for RBI, which includes both one-time arrears and recurring annual expenditure.
What Is The New Hike Band?
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PSGICs:
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12.41% increase in total wage bill
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14% hike in basic pay and DA
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Family pension standardised at 30%
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NABARD:
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Around 20% increase in pay and allowances
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Pension parity with RBI-linked retirees
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RBI:
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10% hike in basic pension plus dearness relief
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Overall, the approved hike band ranges from 10% to 20%, depending on the institution and category, marking one of the most comprehensive revisions in recent years.
(This Article has been syndicated from ANI, edited for clarity)
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