Government Greenlights Wage and Pension Revisions for Financial Sector Employees

The central government has approved wage revisions for PSU General Insurance companies and NABARD, along with pension adjustments for RBI and NABARD retirees, benefiting over 46,000 employees and pensioners. The revisions are expected to have significant financial implications, effective from late 2022, totaling an output of Rs 2,696.82 crore.

The central government has confirmed wage adjustments for Public Sector Undertaking (PSU) General Insurance firms and the National Bank for Agriculture and Rural Development (NABARD). This also encompasses pension updates for retirees of the Reserve Bank of India (RBI) and NABARD, significantly impacting over 46,000 employees and pensioners.

This wage revision for PSU General Insurance is effective from August 1, 2022, involving Rs 8,170.30 crore for wage arrears, the National Pension Scheme (NPS), and family pensions. For NABARD, the update takes effect on November 1, 2022, with a projected expense of Rs 170 crore annually, plus arrears totaling Rs 510 crore.

Pension revisions for RBI and NABARD retirees entail a 10% enhancement on basic pension plus dearness relief, effective November 1, 2022. This results in a one-time cost of Rs 2,485.02 crore for arrears and an ongoing annual cost of Rs 211.80 crore. The total financial impact is estimated at Rs 2,696.82 crore.

(With inputs from agencies.)