Key Takeaways
- PSGIC Staff: 12.41% DA hike for ~1.5 lakh employees of four PSU insurers.
- RBI & NABARD Pensioners: 10% DR hike for ~1.2 lakh pensioners.
- Effective Date: Both increases are effective from July 1, 2024.
- Additional Benefit: This hike is separate from the 4% DA/DR increase for central government staff and pensioners.
The government has announced a significant dearness allowance increase for public sector insurance employees and a dearness relief boost for central bank pensioners, offering financial relief amid inflation.
Major DA Hike for Public Sector Insurance Staff
In a key decision, the government approved a 12.41% increase in the Dearness Allowance (DA) for staff of Public Sector General Insurance Companies (PSGIC). The hike, effective from July 1, 2024, was finalized during a meeting of the National Council (Staff Side) of the Joint Consultative Machinery (JCM).
This move will benefit approximately 1.5 lakh employees working with the four state-run general insurers: New India Assurance, National Insurance, Oriental Insurance, and United India Insurance.
10% DR Increase for RBI and NABARD Pensioners
Separately, the Cabinet Committee on Economic Affairs (CCEA) has cleared a 10% hike in Dearness Relief (DR) for pensioners of the Reserve Bank of India (RBI) and the National Bank for Agriculture and Rural Development (NABARD). This increase is also effective from July 1, 2024.
Around 1.2 lakh pensioners from RBI and NABARD will gain from this decision.
How DA and DR Revisions Work
Dearness Allowance and Dearness Relief are revised bi-annually in January and July to offset the impact of rising living costs. The latest adjustments are based on the All India Consumer Price Index (AICPI) data for the period from July to December 2023.
It’s important to note that the government had previously announced a 4% DA/DR hike for central government employees and pensioners, also effective from July 2024. The latest announcements for PSGIC staff and RBI/NABARD pensioners are in addition to that baseline increase.
The combined hikes are expected to enhance the purchasing power of the beneficiaries, providing a buffer against persistent inflationary pressures.
