Salary and Pension Hike: Some employees working under the central government are about to receive a salary increase. Pensioners are also set to receive a hike in their pensions, which the government has approved.
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Salary and Pension Hike: The salaries and pensions of some employees and pensioners working under the Central Government are set to increase. The government has approved a salary and pension hike for employees of Public Sector General Insurance Companies (PSGICs), NABARD, and the Reserve Bank of India (RBI).
The Finance Ministry stated on Friday that the decision is intended to boost employee morale and strengthen social security for pensioners in the financial sector. The government also stated that approximately 46,322 employees, 23,570 pensioners, and 23,260 family pensioners are expected to benefit from this decision.
PSGIC employees will also see a salary increase.
In order to boost the morale of serving employees and ensure social security for pensioners in the financial sector, the Central Government has approved a salary revision for Public Sector General Insurance Companies (PSGICs). The salary revision for PSGIC employees will be effective from August 1, 2022. This will result in a total increase of 12.41 percent in their salary bill, which includes a 14 percent increase in the existing basic pay and dearness allowance.
A total of 43,247 PSGIC employees will benefit from this revision. This revision also includes a provision to increase the NPS contribution from 10 percent to 14 percent for employees who joined the service after April 1, 2010, to ensure a better future.
What will be the total expenditure?
Family pensions have also been revised at a uniform rate of 30%. This will benefit 14,615 family pensioners out of a total of 15,582 existing family pensioners. The total financial outlay from this revision will be ₹8,170.30 crore, which includes ₹5,822.68 crore for pay revision arrears, ₹250.15 crore for NPS, and ₹2,097.47 crore for family pensions.
PSGIC comprises 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), and Agricultural Insurance Company Limited (AICIL).
NABARD employees also benefit
The government has also approved salary and pension revisions for employees and pensioners of the National Bank for Agriculture and Rural Development (NABARD). This salary revision will be effective from November 1, 2022, and will increase the salaries and allowances of all NABARD Group A, B, and C employees by approximately 20%.
This will benefit approximately 3,800 retired and former employees. The salary revision will result in an additional expenditure of approximately ₹170 crore to the annual salary bill, and the total arrears will be approximately ₹510 crore. The pension revision will involve a one-time payment of ₹50.82 crore in arrears, and an additional ₹3.55 crore will be spent on monthly pension payments for 269 NABARD pensioners and 457 family pensioners.
RBI pensioners also benefit
The government has approved changes to pension and family pensions for retired employees of the Reserve Bank of India (RBI). Under this, pension and family pensions will be increased by 10%, based on the basic pension plus dearness allowance, effective November 1, 2022. This will result in a 1.43-fold increase in the basic pension for all retirees, significantly improving their monthly pension. A total of 30,769 individuals will benefit from this change, including 22,580 pensioners and 8,189 family pensioners.
The total financial implication of the revision is estimated at ₹2,696.82 crore, which includes a one-time payment of ₹2,485.02 crore for arrears and an annual expenditure of ₹211.80 crore.
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