New Delhi:
Ahead of the implementation of the Eighth Pay Commission for central government employees, the Union Government has approved a significant increase in salaries and pensions for employees and pensioners of public sector general insurance companies (PSGICs), the Reserve Bank of India (RBI), and the National Bank for Agriculture and Rural Development (NABARD).
The decision is set to benefit around 46,322 serving employees, 23,570 pensioners, and 23,260 family pensioners, according to an official government statement.
Pay Revision Effective from August 2022
For employees of public sector general insurance companies, the wage revision will be retrospectively effective from August 1, 2022. The revision will result in an overall 12.41 percent increase in the wage bill, with a 14 percent hike in basic pay and dearness allowance.
This move will directly benefit 43,247 employees working in PSGICs.
In addition, the government has approved an increase in its contribution to the National Pension System (NPS) from 10 percent to 14 percent for employees who joined service on or after April 1, 2010.
Uniform Family Pension at 30 Percent
The government has also rationalised the family pension structure by fixing it at a uniform rate of 30 percent. This revision will come into effect from the date of publication of the notification in the official gazette.
Out of 15,582 existing family pensioners, nearly 14,615 are expected to benefit from this change.
Financial Impact
The total financial implication of the revision is estimated at ₹8,170.30 crore, which includes:
- ₹5,822.68 crore towards salary arrears,
- ₹250.15 crore for enhanced NPS contributions, and
- ₹2,097.47 crore for family pension payouts.
Companies Covered Under the Revision
The pay and pension revision applies to employees of the following public sector insurance entities:
- National Insurance Company Limited (NICL)
- New India Assurance Company Limited (NIACL)
- Oriental Insurance Company Limited (OICL)
- United India Insurance Company Limited (UIICL)
- General Insurance Corporation of India (GIC)
- Agricultural Insurance Company of India Limited (AICIL)
Boost Ahead of Pay Commission Rollout
The move comes at a time when the government has already constituted the Eighth Pay Commission for central government employees. The latest decision is expected to provide immediate financial relief to employees and pensioners in key financial institutions, even before broader pay commission recommendations come into effect.
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