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In a significant move aimed at strengthening social security and improving the financial well-being of employees and pensioners, the Central Government has approved wage revisions for Public Sector General Insurance Companies (PSGICs) and NABARD, along with pension revisions for retirees of RBI and NABARD.

This decision reflects the Government’s continued commitment to recognising the long and dedicated service of employees in the financial sector and ensuring a dignified standard of living post-retirement.

Overall, around 46,322 employees, 23,570 pensioners and 23,260 family pensioners are expected to benefit from these revisions.

Key Highlights at a Glance

 Public Sector General Insurance Companies (PSGICs)

The wage and family pension revision for PSGIC employees and pensioners comes as a major morale booster for the insurance sector.

Wage Revision

• Effective from 1st August 2022

• Overall wage bill hike: 12.41%

• Increase of 14% on existing Basic Pay and Dearness Allowance

• 43,247 employees to benefit

• NPS contribution enhanced from 10% to 14% for employees who joined on or after 1st April 2010, ensuring better retirement security

Family Pension Revision

• Family pension revised to a uniform rate of 30%

• Effective from the date of publication in the Official Gazette

• 14,615 family pensioners to benefit out of 15,582 existing family pensioners

Financial Implication

• Total outgo: ₹8,170.30 crore

  • Wage arrears: ₹5,822.68 crore

  • NPS contribution: ₹250.15 crore

  • Family pension revision: ₹2,097.47 crore

PSGICs Covered

• 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)

 NABARD (National Bank for Agriculture and Rural Development)

Pay Revision

• Effective from 1st November 2022

• Approximate 20% hike in pay and allowances

• Applicable to Group A, B and C employees

• Benefits around 3,800 serving and former employees

Pension Revision

• Basic pension and family pension of NABARD retirees (recruited by NABARD and retired before 1st November 2017) brought at par with ex-RBI NABARD retirees

Financial Implication

• Additional annual wage bill: ₹170 crore

• Arrears payout: ₹510 crore

• Pension revision:

  • One-time arrears: ₹50.82 crore

  • Additional monthly pension outgo: ₹3.55 crore

  • Beneficiaries: 269 pensioners and 457 family pensioners

 Reserve Bank of India (RBI)

Pension Revision

• Pension and family pension enhanced by 10% on basic pension plus Dearness Relief

• Effective from 1st November 2022

• Results in an effective enhancement factor of 1.43 in basic pension

• Benefits 30,769 beneficiaries, including:

  • 22,580 pensioners

  • 8,189 family pensioners

Financial Implication

• Total estimated outgo: ₹2,696.82 crore

  • One-time arrears: ₹2,485.02 crore

  • Recurring annual expenditure: ₹211.80 crore

Conclusion

With this comprehensive wage and pension revision package, the Government has taken a meaningful step towards safeguarding the financial stability of employees and pensioners in key financial institutions.

The measures will help beneficiaries better manage rising living costs while maintaining dignity and social security after retirement. More importantly, it reinforces the Government’s commitment to strengthening institutions that play a vital role in India’s inclusive and sustainable economic growth.

This decision is not just about numbers—it is about acknowledging service, ensuring security, and building confidence among those who have contributed significantly to the nation’s financial system.