Department of Financial Services (DFS)
Wage Revision 2026 Approved: PSGIC, NABARD & RBI Pension Update (Official Order)
- Status: Cabinet Approved
- Beneficiaries: PSGIC, NABARD & RBI Staff
- Ref No: DFS Notification Dated Jan 24, 2026
- Key Impact: 17% Pay Hike & Pension Revision
What Changed: The 17% Hike Deal
The Central Government has officially notified the wage revision for employees of Public Sector General Insurance Companies (PSGICs), NABARD, and RBI. The revision, effective retrospectively from August 2022, entails a 17% increase in the wage bill. Additionally, a one-time option for pension has been extended to those who resigned previously but are now eligible under the new “Special Compassionate Allowance” norms.
тЬЕ Notification Released
Authority: Dept of Financial Services (DFS)
Subject: Revision of Pay and Allowances of Officers & Employees of PSGICs
The New Protocol: Arrears & Pension
The wage revision settlement brings parity with LIC employees. The arrears will be paid in a single installment.
тЬФ Financial Benefits
- Pay Scale: Revised scales merged with 100% DA as of Aug 2022.
- NPS Contribution: Management contribution hiked to 14% (matching Central Govt).
- Family Pension: Uniform rate of 30% without any ceiling.
тЬЦ Exclusions
- Resignations: Employees who resigned before the notification date are not eligible for arrears unless specifically covered.
Timeline/Calculation: Salary Jump
Illustrative calculation of the salary hike for an Assistant Manager (Scale I) in a General Insurance Company (e.g., NIA, UIIC).
| Component | Pre-Revision | Post-Revision (2026) |
|---|---|---|
| Basic Pay | тВ╣32,795 | тВ╣50,925 |
| DA (Fixed) | Variable | Merged |
| Gross Salary | тВ╣65,000 (Approx) | тВ╣82,000 (Approx) |
| Arrears (40 Months) | – | тВ╣4.5 Lakhs (Est.) |
How to Respond (For Pensioners)
Retired employees eligible for the “One More Option” for Pension must submit this undertaking to their Zonal Office.
To,
The Pension Disbursing Officer,
[Company Name, e.g., National Insurance Co. Ltd],
Head Office, [City].Subject: Application for exercising ‘One More Option’ for Pension Scheme 1995.
Respected Sir/Madam,
I, Anil Kapoor, Designation Administrative Officer (Retd.), retired from service on December 31, 2020. My PF Account No. is 12093.
Reference Notification No. DFS-2026/Pens dated January 24, 2026, regarding the extension of the Pension Option to left-over retirees. I hereby exercise my option to switch from the Contributory Provident Fund (CPF) to the Pension Scheme 1995.
I authorize the company to recover the entire Company’s contribution to PF paid to me at the time of retirement, along with applicable interest, from my arrears/commutation value.
Kindly issue the necessary demand letter for the refund amount.
Yours faithfully,
Anil Kapoor
Retd. Administrative Officer
Mobile: 9811223344
Date: January 30, 2026
рд╣рд┐рдВрджреА рд╕рд╛рд░рд╛рдВрд╢: PSGIC рдФрд░ NABARD рд╡реЗрддрди рд╕рдордЭреМрддрд╛ 2026
рдХреЗрдВрджреНрд░ рд╕рд░рдХрд╛рд░ рдиреЗ рд╕рд╛рд░реНрд╡рдЬрдирд┐рдХ рдХреНрд╖реЗрддреНрд░ рдХреА рдмреАрдорд╛ рдХрдВрдкрдирд┐рдпреЛрдВ (PSGIC), рдирд╛рдмрд╛рд░реНрдб рдФрд░ RBI рдХреЗ рдХрд░реНрдордЪрд╛рд░рд┐рдпреЛрдВ рдХреЗ рд▓рд┐рдП рд╡реЗрддрди рд╕рдВрд╢реЛрдзрди рдХреЛ рдордВрдЬреВрд░реА рджреЗ рджреА рд╣реИред рдЗрд╕рдХреЗ рддрд╣рдд рд╡реЗрддрди рдореЗрдВ 17% рдХреА рдмрдврд╝реЛрддрд░реА рдХреА рдЧрдИ рд╣реИ рдЬреЛ рдЕрдЧрд╕реНрдд 2022 рд╕реЗ рд▓рд╛рдЧреВ рдорд╛рдиреА рдЬрд╛рдПрдЧреАред рдЗрд╕рдХрд╛ рдорддрд▓рдм рд╣реИ рдХрд┐ рдХрд░реНрдордЪрд╛рд░рд┐рдпреЛрдВ рдХреЛ рд▓рдЧрднрдЧ 40 рдорд╣реАрдиреЗ рдХрд╛ рдПрд░рд┐рдпрд░ (рдмрдХрд╛рдпрд╛ рд░рд╛рд╢рд┐) рдПрдХ рд╕рд╛рде рдорд┐рд▓реЗрдЧрд╛ред рд╕рд╛рде рд╣реА, рдкрд╛рд░рд┐рд╡рд╛рд░рд┐рдХ рдкреЗрдВрд╢рди рдХреЛ 30% рдкрд░ рдлрд┐рдХреНрд╕ рдХрд░ рджрд┐рдпрд╛ рдЧрдпрд╛ рд╣реИ рдФрд░ NPS рдореЗрдВ рдкреНрд░рдмрдВрдзрди рдХрд╛ рдпреЛрдЧрджрд╛рди 10% рд╕реЗ рдмрдврд╝рд╛рдХрд░ 14% рдХрд░ рджрд┐рдпрд╛ рдЧрдпрд╛ рд╣реИред рдЬреЛ рдХрд░реНрдордЪрд╛рд░реА рд░рд┐рдЯрд╛рдпрд░ рд╣реЛ рдЪреБрдХреЗ рд╣реИрдВ, рдЙрдиреНрд╣реЗрдВ рдкреЗрдВрд╢рди рдпреЛрдЬрдирд╛ рдЪреБрдирдиреЗ рдХрд╛ рдПрдХ рдФрд░ рдореМрдХрд╛ рджрд┐рдпрд╛ рдЧрдпрд╛ рд╣реИред
Frequently Asked Questions
From which date is the PSGIC wage revision effective?
The wage revision is effective retrospectively from August 1, 2022. The arrears for the period from Aug 2022 to Jan 2026 will be paid in cash.
What is the new Family Pension rate for Insurance employees?
The Family Pension has been standardized at a uniform rate of 30% of the last drawn pay, removing the previous slab-based ceiling limits.
Is the NPS contribution increased for NABARD staff?
Yes, the employer’s (management) contribution to the National Pension System (NPS) has been enhanced from 10% to 14% of Basic Pay + DA, aligning it with Central Government rules.