This decision is set to benefit approximately 46,322 employees, 23,570 pensioners, and 23,260 family pensioners, as noted by the Finance Ministry.
Wage adjustments for PSGIC employees effective August 2022
For PSGICs, the wage adjustments will be effective from August 1, 2022. The government indicated that the overall wage bill will increase by 12.41%, which includes a 14% rise in the existing basic pay and dearness allowance.
This revision will affect 43,247 employees across PSGICs. Additionally, it raises the employer contribution to the National Pension System (NPS) from 10% to 14% for employees who joined after April 1, 2010.
The government estimated the total financial outlay for PSGIC-related revisions at ₹8,170.30 crore, comprising ₹5,822.68 crore for arrears, ₹250.15 crore for NPS, and ₹2,097.47 crore for family pension revisions.
PSGICs comprise National Insurance Company, New India Assurance, Oriental Insurance, United India Insurance, General Insurance Corporation of India, and Agricultural Insurance Company of India.
Family pension for PSGICs increased to 30%
The government also updated the family pension for PSGICs to a uniform rate of 30%, effective from the date of publication in the official gazette. This decision will benefit 14,615 family pensioners from a total of 15,582 existing family pensioners.
NABARD pay adjustments starting November 2022
For NABARD, the pay revisions will take effect from November 1, 2022, featuring an increase in pay and allowances by approximately 20% for employees across Groups A, B, and C.
This adjustment is expected to benefit around 3,800 current and former employees. The Finance Ministry has projected an additional annual wage bill of approximately ₹170 crore, with total arrears around ₹510 crore.
NABARD pension adjustments for pre-2017 retirees
NABARD has also secured approval for pension and family pension adjustments for retirees hired by NABARD before November 1, 2017. This revision aligns their pensions with those of ex-RBI NABARD retirees.
The pension adjustment will incur a one-time arrear payment of ₹50.82 crore, along with an ongoing monthly pension liability of ₹3.55 crore affecting 269 pensioners and 457 family pensioners, according to the government.
RBI pension raised by 10% starting November 2022
The government has approved a pension and family pension adjustment for RBI retirees, implementing a 10% increase on basic pension plus dearness relief, effective from November 1, 2022.
Approximately 30,769 beneficiaries will be affected, including 22,580 pensioners and 8,189 family pensioners. The government noted that this change results in an effective increase in basic pension by a factor of 1.43 for all retirees.
The total financial impact of the RBI pension revisions is estimated at ₹2,696.82 crore, which includes ₹2,485.02 crore as one-time arrears and ₹211.80 crore as recurring annual expenditure.
The Finance Ministry emphasized that these revisions aim to offer significant relief to employees and pensioners, assisting them in managing cost-of-living pressures while ensuring a respectable standard of living in retirement.
