The Indian government has approved a long-pending wage revision for Public Sector General Insurance companies (PSGICs) and the National Bank for Agriculture and Rural Development (NABARD). The revision will benefit approximately 46,322 employees, 23,570 pensioners, and 23,260 family pensioners across these organizations. The wage revision for PSGIC employees will be effective from August 1, 2022, with an overall hike in the wage bill of 12.41%. The revision includes an enhancement in the National Pension System (NPS) contribution from 10% to 14% for employees who joined after April 1, 2010.
The PSGICs that will be affected by this revision include National Insurance Company Ltd., New India Assurance Company Ltd., Oriental Insurance Company Ltd., United India Insurance Company Ltd., General Insurance Corporation of India, and Agricultural Insurance Company Ltd. The total outgo for the wage revision will be approximately Rs 8,170.30 crore, which includes Rs 5,822.68 crore towards arrears, Rs 250.15 crore for NPS, and Rs 2,097.47 crore for family pension.
In addition to the wage revision, the government has also approved a pension revision for retirees of NABARD and the Reserve Bank of India (RBI). The pension revision for NABARD retirees will bring their basic pension and family pension on par with that of ex-RBI NABARD retirees. The revision will benefit around 3,800 serving and former employees, with an additional annual wage bill of around Rs 170 crore and a total payment of arrears amounting to around Rs 510 crore.
The pension revision for RBI retirees will result in an enhancement of basic pension by a factor of 1.43, leading to a substantial improvement in their monthly pension. The revision will benefit a total of 30,769 beneficiaries, comprising 22,580 pensioners and 8,189 family pensioners, with a total financial implication of Rs 2,696.82 crore. The government has stated that these revisions are aimed at improving the welfare of employees and retirees in these organizations.