By NSB.News
New Delhi (23.01.2026): The Central Government has approved wage revision for employees of Public Sector General Insurance Companies (PSGICs) and the National Bank for Agriculture and Rural Development (NABARD), along with pension revision for retirees of the Reserve Bank of India (RBI) and NABARD. The move is expected to boost employee morale and strengthen social security for pensioners in the financial sector.
The decision underlines the Government’s continued commitment to social security and the financial well-being of serving employees and pensioners, in recognition of their long and dedicated service. Key highlights are as follows:
PSGICs:
The wage revision for PSGIC employees will be effective from 1 August 2022. The overall increase in the wage bill is 12.41 per cent, with a 14 per cent hike on existing basic pay and dearness allowance. Around 43,247 employees will benefit from the revision. The decision also includes enhancement of the National Pension System (NPS) contribution from 10 per cent to 14 per cent for employees who joined after 1 April 2010.
Family pension has been revised at a uniform rate of 30 per cent from the date of publication in the official gazette. This will benefit 14,615 family pensioners out of a total of 15,582 existing beneficiaries.
The total financial implication for PSGICs is estimated at ₹8,170.30 crore, including ₹5,822.68 crore towards wage revision arrears, ₹250.15 crore for NPS contribution and ₹2,097.47 crore towards family pension. The PSGICs include 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) and Agricultural Insurance Company Ltd. (AICIL).
NABARD:
For NABARD, pay revision has been approved with effect from 1 November 2022, providing a hike of around 20 per cent in pay and allowances for Group ‘A’, ‘B’ and ‘C’ employees. The revision will benefit nearly 3,800 serving and former employees.
Pension revision has also been approved for NABARD retirees who were originally recruited by NABARD and retired before 1 November 2017, bringing their basic pension and family pension at par with ex-RBI NABARD retirees.
The pay revision will result in an additional annual wage bill of around ₹170 crore and arrears amounting to approximately ₹510 crore. Pension revision will entail a one-time arrear payment of ₹50.82 crore and an additional monthly outgo of ₹3.55 crore for 269 pensioners and 457 family pensioners.
RBI:
The Government has approved revision of pension and family pension for RBI retirees in line with its commitment to ensuring fair, adequate and sustainable retirement benefits. Under the approved decision, pension and family pension will be enhanced by 10 per cent on basic pension plus dearness relief with effect from 1 November 2022.
This will lead to an effective enhancement of basic pension by a factor of 1.43 for all retirees, significantly improving monthly pension payouts. The revision will benefit 30,769 beneficiaries, including 22,580 pensioners and 8,189 family pensioners.
The total financial implication for RBI pension revision is estimated at ₹2,696.82 crore, comprising a one-time expenditure of ₹2,485.02 crore towards arrears and a recurring annual expenditure of ₹211.80 crore.