The Government of India has hiked the salary of public sector insurance officers. The basic pay of Scale 1 Officer has been increased from Rs.50,925 to Rs.82,485. On the contrary, the initial basic pay for an IBPS PO is just Rs.48,480 per month.
The new basic pay of officers is as follows:
- Scale VII: 251125-6755(2)-264635-7240(1)-271875-7920(1)-279795-8215(4)-312655
- Scale VI: 224105-6755(8)-278145
- Scale V: 200235-5785(3)-217590-6515(6)-256680
- Scale IV: 165525-5785(9)-217590
- Scale III: 135135-4050(1)-139185-4390(6)-165525-5785(4)-188665
- Scale II: 110835-4050(7)-139185-4390(6)-165525
- Scale I: 82485-4050(14)-139185-4390(4)-156745
New Allowances of PSU Insurance Officers
HRA of PSU Insurance Officers
Apart from salary, the allowances of PSU Insurance Employees have also been revised. The new HRA is as follows:
| Serial Number | Place of Posting | Rate per Month |
|---|---|---|
| 1 | Cities of Mumbai, Navi Mumbai, Kolkata, New Delhi, Chennai, Ahmedabad, Bengaluru, Hyderabad, Pune, Faridabad, Ghaziabad, Noida and Gurgaon | Ten per cent of pay subject to maximum of Rs. 13,000/- per month |
| 2 | Cities with population exceeding 12 lacs, except the cities mentioned at serial number 1, and all cities in the State of Goa | Eight per cent of pay subject to maximum of Rs. 11,000/- per month |
| 3 | All other places | Seven per cent of pay subject to maximum of Rs. 10,500/- per month |
City Compensatory Allowance of PSU Insurance Officers
| Serial Number | Place of Posting | Rate |
|---|---|---|
| 1 | Metro Cities: Mumbai, Navi Mumbai, Kolkata, New Delhi, Chennai, Ahmedabad, Bengaluru, Hyderabad, Pune, Faridabad, Ghaziabad, Noida and Gurgaon | Three per cent of pay subject to a maximum of Rs. 3,300/- per month |
| 2 | A Class: Cities with population exceeding 12 lacs, except cities mentioned in serial number 1, and all cities in the State of Goa | 2.5 per cent of pay subject to a maximum of Rs. 3,100/- per month |
| 3 | B Class: Cities with population of 5 lacs and above but not exceeding 12 lacs, State capitals with population not exceeding 12 lacs, Chandigarh, Mohali, Panchkula, Pondicherry, Port Blair | Two per cent of pay subject to a maximum of Rs. 2,400/- per month |
| 4 | C Class: All other cities | Nil |
Hill Station Allowance of PSU Insurance Officers
| Serial Number | Height of Place of Posting (Above Mean Sea Level) | Rate |
|---|---|---|
| 1 | 1500 meters and over | 2.5% of Pay subject to maximum of Rs. 2,055/- per month |
| 2 | 1000 meters and over but less than 1500 meters, Mercara and places specifically declared as “Hill Stations” by Central or State Governments for their employees | Two per cent of Pay subject to maximum of Rs. 1,650/- per month |
| 3 | Not less than 750 meters and surrounded by and accessible only through hills with a height of 1000 meters and over | Two per cent of Pay subject to maximum of Rs. 1,650/- per month |
Kit Allowance of PSU Insurance Officers
With effect from the 1st day of the month following the date of commencement of the General Insurance (Rationalisation of Pay Scales and other Conditions of Service of Officers) Amendment Scheme, 2026, every officer on his transfer to any of the hill stations at which Hill Station Allowance is payable, shall be paid a Kit Allowance of Rs. 14,800/-.
Fixed Personal Allowance of PSU Insurance Officers
| Serial Number | Officers in the Scale of Pay (as on 1st November, 1993) | Revised Fixed Personal Allowance (Rs.) |
|---|---|---|
| 1 | Scale VII | 8215 |
| 2 | Scale VI | 6755 |
| 3 | Scale V | 6515 |
| 4 | Scale IV | 5785 |
| 5 | Scale III | 5785 |
| 6 | Scale II | 4390 |
| 7 | Scale I | 4390 |
Transport Allowance of PSU Insurance Officers
With effect from the 1st day of August, 2022, every Officer, who is not in receipt of any Conveyance Allowance or Transport Allowance or reimbursement of Conveyance or Transport Expenses under any of the Conveyance Schemes, shall be paid Transport Allowance of Rs. 3,300/- per month.
Paradeep Port Allowance of PSU Insurance Officers
With effect from the 1st day of the month following the date of commencement of the General Insurance (Rationalisation of Pay Scales and other Conditions of Service of Officers) Amendment Scheme, 2026 or the date of appointment, whichever is later, every confirmed officer posted in the office of the Company in Paradeep port shall be paid an allowance of Rs. 440/- per month so long as he is posted in that office. This allowance shall not be treated as Basic Pay for any purpose.”.
