Big Relief for Employees: Centre Approves Wage and Pension Revision for RBI, NABARD and PSGICs

The Ministry of Finance recently shared a press release on January 23, 2026, regarding approval of the wage revision for employees and pensioners of PSGICs, NABARD and RBI.

The Central Government has decided to revise wages for Public Sector General Insurance Companies (PSGICs) and the National Bank for Agriculture and Rural Development (NABARD). This includes higher salaries for current employees of public sector general insurance companies and NABARD and revised pensions for retired employees of RBI and NABARD. These steps are meant to boost employee morale and provide better financial security to pensioners.

PSGICs:

Wage Revision

The salaries of employees working in Public Sector General Insurance Companies (PSGICs) will be revised starting from August 1, 2022. Under this revision, the total salary cost will increase by 12.41%, and employees will get a 14% increase in their basic pay and dearness allowance. About 43,247 employees will benefit from this change. In addition, for employees who joined after April 1, 2010, the employer’s contribution to the National Pension System (NPS) has been increased from 10% to 14%, helping them secure a better retirement in the future.

Family Pension Revision

The family pension has been increased by 30% for everyone, starting from the date it was officially announced in the government gazette. This increase will help 14,615 family pensioners out of the total 15,582 currently receiving family pensions. The revision is meant as a way to recognize and appreciate their valuable contribution to the organization.

Financial Implication

The government will spend a total of Rs 8,170.30 crore. Out of this amount, Rs 5,822.68 crore will be used towards the arrears of wage revision, Rs 250.15 crore will go towards contributions under the National Pension System (NPS), and Rs 2,097.47 crore will be spent on family pension payments.

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:

Pay revision

From November 1, 2022, NABARD increased the pay and allowances of all its Group ‘A’, ‘B’, and ‘C’ employees by about 20%. This pay hike helps around 3,800 people, including both current employees and those who have already retired, by giving them higher salaries or pension-related benefits.

Pension Revision

The basic pension and family pension of NABARD employees who were directly recruited by NABARD and retired before November 1, 2017, have now been increased and made equal to the pension paid to former RBI employees who retired from NABARD.

Financial Implication

The pay revision will increase NABARD’s yearly salary expenses by about Rs 170 crore, and the payment of arrears to employees will total around Rs 510 crore. Whereas, the pension revision will involve a one-time arrear payment of about Rs 50.82 crore, and it will also increase monthly pension payments by about Rs 3.55 crore for 269 pensioners and 457 family pensioners of NABARD.

RBI:

Pension revision

The government has decided to increase the pension and family pension for retired employees of the Reserve Bank of India (RBI). This step is part of the government’s commitment to ensure that senior citizens and their families get fair and sufficient financial support after retirement.

Under this new decision, pension and family pension will go up by 10% of the basic pension along with the dearness allowance, starting from 1st November 2022. This revision will help a total of 30,769 people, including 22,580 retired employees and 8,189 family pensioners.

Financial Implications

The total cost is estimated to be Rs 2,696.82 crore. Out of this, Rs 2,485.02 crore will be spent once to cover arrears, and Rs 211.80 crore as recurring annual expenditure.

Around 46,322 employees, 23,570 pensioners, and 23,260 family pensioners will benefit from these measures. This will help employees of PSGICs and NABARD, as well as pensioners and family pensioners of RBI and NABARD, manage their living expenses better while maintaining a decent lifestyle and social standing after retirement.

The government is committed to supporting institutions that are important for the country’s inclusive and sustainable economic growth.