Good news ahead of the 8th Pay Commission! The government has increased the salaries of these employees, and their pensions will also increase.: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.

News Topical, Digital Desk : Salary and Pension Hike: The salaries and pensions of some employees and pensioners working under the central government are about to increase. The government has approved salary and pension increases for employees of Public Sector General Insurance Companies (PSGICs), NABARD, and the Reserve Bank of India (RBI).

The Finance Ministry said on Friday that the decision is aimed at boosting employee morale and strengthening social security for pensioners in the financial sector. The government also said that in total, about 46,322 employees, 23,570 pensioners and 23,260 family pensioners are expected to benefit from this decision. The government said that in total, about 46,322 employees, 23,570 pensioners and 23,260 family pensioners are expected to benefit from this decision.

Salary of PSGIC employees will also increase

In fact, the Central Government has approved a pay revision for Public Sector General Insurance Companies (PSGICs) to boost the morale of serving employees and ensure social security for pensioners in the financial sector. The pay revision for PSGIC employees will be effective from August 1, 2022. This will result in a total increase of 12.41% in their salary bill, which includes a 14% increase in the existing basic pay and dearness allowance.

This amendment will benefit a total of 43,247 PSGIC employees. This amendment also provides for an increase in NPS contributions from 10% to 14% for employees who joined the workforce after April 1, 2010, to ensure a better future for them.

How much will it cost in total?

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 implication of 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 pay revision will result in an additional expenditure of approximately ₹170 crore to the annual wage bill, and the total arrears will be approximately ₹510 crore. A one-time payment of ₹50.82 crore will be made for the pension revision, and the monthly pension payments to 269 NABARD pensioners and 457 family pensioners will result in an additional ₹3.55 crore.

RBI pensioners also benefit

The government has approved changes to pension and family pensions for retired employees of the Reserve Bank of India (RBI). Effective November 1, 2022, pension and family pensions will be increased by 10% based on the basic pension plus dearness allowance. 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 outlay from the revision is estimated at Rs 2696.82 crore, which includes a one-time payment of Rs 2485.02 crore towards arrears and an annual expenditure of Rs 211.80 crore.