The Central Government has approved major wage and pension revisions for employees and retirees across key financial institutions, including Public Sector General Insurance Companies (PSGICs), NABARD and the Reserve Bank of India (RBI).

The decision will benefit more than 93,000 employees, pensioners and family pensioners, reaffirming the government’s focus on social security and financial stability for public sector workers.

Big Pay Hike for PSGIC Employees

As part of the revision:

43,247 employees of PSGICs will receive a 12.41 percent wage hike.

Their NPS contribution has also been enhanced.

In addition, 14,615 family pensioners under PSGICs will now receive a uniform family pension rate of 30 percent.

NABARD Staff and Pensioners to Benefit

For the National Bank for Agriculture and Rural Development (NABARD):

3,800 employees will receive a 20 percent pay hike.

726 NABARD retirees (who retired before 1 November 2017) will get revised pension and family pension, aligned with former RBI and NABARD retirees.

Pension Boost for RBI Retirees

The government has also approved a pension revision for 30,769 RBI pensioners and family pensioners. Their pension will be revised with effect from 1 November 2022, along with a 10 percent increase.

Govt Reaffirms Social Security Commitment

In a statement, the Department of Financial Services (DFS) said the move reflects the government’s continued commitment to the financial well-being and dignity of employees and pensioners, recognising their long years of service.

The announcement was shared by DFS on X on January 23, 2026.

Big Relief for Public Sector Workforce

With these approvals, over 93,000 beneficiaries will see higher income and better social security coverage, marking one of the largest coordinated wage and pension revisions in the financial services sector in recent years.