Govt Clears Long-Pending Pay, Pension Hikes for Insurance, RBI and NABARD Staff

The central government has approved long-awaited salary and pension revisions for employees and retirees of public sector general insurance companies, Reserve Bank of India (RBI) and National Bank for Agriculture and Rural Development (NABARD), bringing financial relief to more than 93,000 people across the financial sector.

Announcing the decision, the Ministry of Finance said the move aims to improve employee morale and strengthen social security for pensioners who have served the country’s key financial institutions for decades.

According to the government, the beneficiaries include over 46,000 serving employees, around 23,500 pensioners and more than 23,000 family pensioners.

Salary Revision for General Insurance Employees

Employees of public sector general insurance companies will receive revised wages with effect from August 1, 2022. The overall increase in the wage bill has been fixed at 12.41 per cent, which includes a rise in basic pay and allowances.

More than 43,000 employees are expected to benefit from the revision. The government has also raised its contribution to the National Pension System from 10 per cent to 14 per cent for employees who joined after April 2010, strengthening their retirement savings.

Family pension for these companies has been standardised at 30 per cent, benefiting over 14,000 family pensioners. The total cost of these changes is estimated at over Rs 8,170 crore, including arrears and pension-related expenses.

NABARD Employees and Pensioners Get Relief

For NABARD, the government has approved a pay revision effective November 1, 2022, leading to an average increase of about 20 per cent in salaries and allowances for employees across various categories. Nearly 3,800 serving and retired staff members will benefit.

The revision is expected to add around Rs 170 crore annually to NABARD’s wage bill, while arrears are estimated at Rs 510 crore.
Pension and family pension for older NABARD retirees have also been revised, bringing them in line with similar retirees linked to RBI. This change will benefit several hundred pensioners and family pensioners, with additional monthly payouts approved.

Pension Boost for RBI Retirees

The government has also approved a pension revision for retired RBI employees and their families, effective from November 1, 2022. Under the new formula, pensions will see a significant increase, improving monthly income for retirees.

More than 30,000 beneficiaries, including pensioners and family pensioners, are expected to gain from this move. The total financial impact is estimated at nearly Rs 2,700 crore, largely due to arrears, along with recurring annual expenses.

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