In a significant move aimed at improving the financial well-being of public sector employees, the central government has approved a long-awaited salary and pension revision for employees and retirees associated with public sector general insurance companies, NABARD, and the Reserve Bank of India (RBI). The decision is expected to benefit tens of thousands of serving employees, pensioners, and family pension recipients across these key financial institutions.
According to official information released by the finance ministry, the salary and pension revision will impact over 46,000 employees, along with more than 23,000 pensioners and family pensioners. This approval comes after prolonged demands from employee unions and retiree associations, who had been seeking revisions in line with rising living costs and inflation.
Employees working in public sector general insurance companies will see their revised pay structure implemented retrospectively from 1 August 2022. The government has estimated that this revision will involve a total expenditure of approximately ₹8,170 crore.
This amount includes multiple components such as salary arrears, employer contributions to the National Pension System (NPS), and increased family pension payouts. Of the total amount, nearly ₹5,800 crore will be spent solely on clearing pending salary arrears accumulated over the revision period. The remaining funds will cover pension-related liabilities and statutory contributions.
This revision is expected to significantly enhance monthly take-home pay for serving employees while also improving retirement benefits for those who have already exited service.
For employees of the National Bank for Agriculture and Rural Development (NABARD), the salary revision will come into effect from 1 November 2022. The revised pay scales are expected to increase the institution’s annual salary expenditure by around ₹170 crore.
In addition to this recurring cost, the government will also release approximately ₹510 crore as arrears for the period since the revision date. This move is expected to bring NABARD employees’ compensation closer to that of comparable financial institutions and reflect their growing responsibilities in rural development and agricultural financing.
The government has also approved pension revisions for NABARD pensioners and family pensioners. As part of this decision, eligible retirees will receive a one-time arrears payout of around ₹50 crore. Furthermore, the revised pension structure will result in an additional ₹3.5 crore monthly expenditure.
This step is seen as a crucial relief for retired employees, many of whom have been facing financial pressure due to rising healthcare and living expenses.
Retired employees of the Reserve Bank of India and their family pension beneficiaries have also received a major boost. The government has sanctioned a 10 percent increase in pension and family pension, effective from 1 November 2022.
The total financial impact of this decision is estimated at around ₹2,700 crore, which includes arrears as well as future annual pension expenses. This enhancement is expected to provide meaningful financial support to RBI retirees, who play a crucial role in maintaining institutional knowledge and stability within the country’s central banking ecosystem.
The government has stated that the objective of this comprehensive revision is to strengthen the financial security of employees and pensioners while addressing long-standing grievances. Officials believe that improved compensation will help maintain morale, ensure workforce stability, and recognize the contributions made by these institutions to the country’s financial and economic framework.
The approval of salary and pension revisions for PSU insurance companies, NABARD, and RBI marks a major step toward aligning compensation with current economic realities. With substantial arrears payments and improved monthly benefits, the decision brings much-needed relief to thousands of employees and retirees. It also signals the government’s commitment to addressing pending issues related to public sector compensation in a structured and timely manner.
