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Informist, Friday, Jan. 23, 2026

NEW DELHI – The government has approved wage revision for staff of public sector general insurance companies and National Bank for Agriculture and Rural Development, the finance minitry said Friday. The government has also approved pension revision for retirees of Reserve Bank of India and NABARD. 

The step was taken to "boost the morale of the serving employees as well as to ensure the social security of pensioners in the financial sector", the ministry said in a release. "The decision reflects the Government's continued commitment and emphasis on social security and the financial well-being of pensioners, in recognition of their long and dedicated professional service."

The government enhanced pension and family pension of retirees of the central bank by 10% of basic pension plus dearness relief, with effect from Nov. 11, 2022. The total financial implication is estimated at INR 26.97 billion, which includes a one-time expenditure of INR 24.85 billion towards arrears and a recurring annual expenditure of INR 2.11 billion. 

For PSU general insurance companies' staff, the government hiked the wage bill by 12.41% with an increase of 14% on existing basic pay and dearness allowance. Effective Aug. 1, 2022, the wage revision also incorporates an enhancement in National Pension System contribution from 10% to 14%. The government also revised family pension at a uniform rate of 30%. The total outgo will be to the tune of INR 81.70 billion , with INR 58.23 billion towards the arrears of wage revision, INR 2.50 billion for NPS, and INR 20.97 billion for family pension. 

PSU general insurance companies are National Insurance Co. Ltd., New India Assurance Co. Ltd., Oriental Insurance Co. Ltd., United India Insurance Co. Ltd., General Insurance Corp. of India, and Agricultural Insurance Co. Ltd.

The government also hiked pay and allowances by 20% for all Group ‘A', ‘B' and ‘C' employees in NABARD, effective Nov. 1, 2022. Basic pension or family pension to retirees of NABARD, who were originally recruited by NABARD and retired before Nov. 1, 2017, have now been "brought on par with that of ex-RBI, NABARD retirees", the finance ministry said. The pay revision means an additional annual wage bill of around 1.70 billion and INR 5.10 billion for arrears. The pension revision will result in a one-time arrear payment of INR 508.20 million as well as an additional INR 35.5 million per month for pension payments. 

The above changes will benefit approximately 46,322 employees, 23,570 pensioners and 23,260 family pensioners. "This measure will provide meaningful relief to the employees of PSGICs and NABARD, and to pensioners/family pensioners of RBI and NABARD, by enabling them to better absorb the cost of living while maintaining a dignified standard of living and social status post-retirement," the ministry said.  End

Reported by Priyasmita Dutta

Edited by Akul Nishant Akhoury

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