The Central Government has officially approved substantial pay raises and pension increases for financial sector employees, a move that will bring joy to thousands of families. Today, the Ministry of Finance announced a move to assist workers and retirees in coping with increasing living costs, while also recognizing their service at key institutions such as the Reserve Bank of India (RBI), NABARD, and public insurance companies.
14% Pay Raise for Insurance Workers
The largest group to benefit from this decision are the 43,247 employees working in Public Sector General Insurance Companies (PSGICs).
Starting retroactively from August 2022, these employees will see a 14% increase in their basic pay and dearness allowance. Additionally, the government is increasing its contribution to the National Pension System (NPS) from 10% to 14%, ensuring that these workers have a much larger “nest egg” when they eventually retire.
The total impact of these measures is vast, reaching approximately:
- 46,322 serving employees.
- 23,570 pensioners.
- 23,260 family pensioners.
Major Boost for NABARD Employees
Employees at NABARD (the National Bank for Agriculture and Rural Development) are also seeing a significant windfall. About 3,800 staff members will receive a pay hike of roughly 20%.
Crucially, the government has also fixed an old “pension gap” at NABARD. Older retirees who left the bank years ago will now have their pensions updated to match newer standards, ensuring they aren’t left behind by inflation.
RBI Retirees to Get Higher Monthly Pensions
For those who have already retired from the Reserve Bank of India, the news is equally good. More than 30,000 RBI pensioners and their families will receive a 10% boost to their monthly payments.
By applying a special calculation factor (a 1.43 multiplier), the government is effectively increasing the base pension amount to help senior citizens live more comfortably and maintain their “social status” during their golden years.
Better Support for Families
The government also focused on “Family Pensions”—the money paid to the spouses or dependents of deceased employees. Across the general insurance sector, this has been streamlined to a uniform 30% rate, providing better financial security for over 14,000 families who rely on this support.
Why Is the Government Doing This?
The Ministry of Finance explained that this isn’t just about the money; it’s about social security. The goal is to ensure that the people who spent their careers building India’s financial strength can live a “dignified life” after they stop working. By the numbers, this massive project will cost the government over ₹10,000 crore in total, but it will directly improve the lives of more than 93,000 people, including serving staff, senior citizens, and grieving families.
As one official put it, these institutions are the “backbone” of India’s growth, and it is only fair that the people behind them are well-compensated.
The Central Government has approved significant pay raises and pension increases for employees in the financial sector, a move that will benefit thousands of families.
9.6 Lakh Candidates Registered for KVS N...
Documents To Carry for OICL AO Prelims E...
25 Lakh Candidates Applied for CTET Febr...
