New Delhi: In a major decision aimed at strengthening social security and improving the financial well-being of employees and pensioners in the financial sector, the Central Government has approved wage revision for Public Sector General Insurance Companies (PSGICs) and the National Bank for Agriculture and Rural Development (NABARD). The government has also cleared pension and family pension revision for retirees of the Reserve Bank of India (RBI) and NABARD.
The move is expected to significantly boost employee morale and provide enhanced retirement security to thousands of serving and retired personnel who have rendered long years of service in key financial institutions.
Government Reaffirms Commitment to Social Security
The decision underlines the Government’s continued focus on ensuring fair compensation, dignified retirement benefits, and social security for employees and pensioners in the public financial sector. By addressing long-pending demands related to pay and pension revision, the government has acknowledged the contribution of employees in strengthening India’s banking, insurance, and rural finance systems.
Wage and Pension Revision for PSGIC Employees
Wage Revision Effective from August 1, 2022
The government has approved a 12.41 percent overall increase in the wage bill for employees of Public Sector General Insurance Companies, effective from August 1, 2022.
Basic pay and Dearness Allowance increased by 14 percent
43,247 PSGIC employees will benefit from the wage revision
The revision includes enhancement of NPS contribution from 10 percent to 14 percent for employees who joined after April 1, 2010, strengthening long-term retirement benefits
Family Pension Revised at Uniform Rate
As part of the reform package, the government has also approved a uniform family pension rate of 30 percent, effective from the date of publication in the official gazette.
- 14,615 family pensioners will benefit
- Out of a total 15,582 existing family pensioners
The revision is a gesture of appreciation for the contribution of employees to the insurance sector
Financial Implications for PSGICs
The total financial outgo for PSGIC-related revisions amounts to ₹8,170.30 crore, comprising:
- ₹5,822.68 crore towards wage revision arrears
- ₹250.15 crore for enhanced NPS contribution
- ₹2,097.47 crore towards family pension revision
PSGICs Covered Under the Decision
The wage and pension revision applies to the following public sector insurance entities:
- 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)
Pay and Pension Revision for NABARD Employees
Pay Revision from November 1, 2022
The Central Government has approved a pay and allowances hike of about 20 percent for all Group A, B, and C employees of NABARD, effective from November 1, 2022.
Around 3,800 serving and former employees will benefit
The revision covers both current staff and eligible retirees
Pension Parity with RBI-NABARD Retirees
A significant reform has been introduced for NABARD pensioners:
- Basic pension and family pension of NABARD retirees who retired before November 1, 2017 will now be brought on par with ex-RBI NABARD retirees
- Applicable to employees originally recruited by NABARD
Financial Impact on NABARD
- Additional annual wage bill: ~₹170 crore
- Total arrears payment: ~₹510 crore
- One-time pension arrears: ₹50.82 crore
- Additional monthly pension outgo: ₹3.55 crore
This will benefit 269 pensioners and 457 family pensioners of NABARD.
Pension Revision for RBI Retirees Approved
10 Percent Pension Enhancement from November 1, 2022
The government has also approved revision of pension and family pension for RBI retirees, reinforcing its commitment to sustainable retirement benefits for senior citizens.
Pension and family pension enhanced by 10 percent on basic pension plus dearness relief
Effective from November 1, 2022
Leads to an effective enhancement of basic pension by a factor of 1.43
Beneficiaries and Financial Implications for RBI
Total beneficiaries: 30,769
- 22,580 pensioners
- 8,189 family pensioners
Total financial implication: ₹2,696.82 crore, including:
- ₹2,485.02 crore as one-time arrears
- ₹211.80 crore as recurring annual expenditure
Strengthening Financial Sector Workforce and Retiree Welfare
With this comprehensive wage and pension revision package, the Central Government has taken a major step toward ensuring financial stability, social security, and dignity for employees and pensioners in key financial institutions. The decision is expected to have a positive impact on workforce motivation while reinforcing trust in public sector institutions.
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