If you are preparing for NIACL AO, NICL AO, OICL AO or UIICL AO, one of the first questions on your mind is — how much will I actually earn after selection?
The Central Government has officially notified a comprehensive wage revision for all Public Sector General Insurance Companies (PSGICs) through the Gazette of India dated 11 February 2026 (S.O. 716–719(E)). This is the 18th Schedule Pay Revision, effective retrospectively from 1 August 2022.
This post gives you every number — basic pay, in-hand salary, HRA, CCA, NPS, allowances, and arrears — directly from the official gazette notification.
Quick Facts at a Glance
| Detail | Value |
|---|---|
| Scale I Entry Basic Pay | ₹82,485/month |
| Scale I In-Hand Salary (Metro) | ~₹1.05–1.10 lakh/month (estimated) |
| NPS Employer Contribution (Revised) | 14% of Basic + DA (was 10%) |
| Effective Date | 1 August 2022 (retrospective) |
| Arrears Period | ~42 months |
| Gazette Published | 11 February 2026 |
| Authority | Ministry of Finance — S.O. 716–719(E) |
Table of Contents
- Companies Covered Under GIPSA
- Officer Pay Scale — Scale I to VII (18th Schedule)
- In-Hand Salary Estimate — Scale I Officer
- HRA, CCA, Transport and Other Allowances
- Development Officer Salary — Schedule K
- Assistant / Clerk / Subordinate Staff Salary
- NPS and Family Pension — What Changed?
- Arrears — Who Gets What?
- Promotion Path and Salary Growth
- Frequently Asked Questions
1. Companies Covered Under GIPSA
GIPSA stands for General Insurance Public Sector Association. The 2026 wage revision applies to all GIPSA member companies. If you are appearing for any of the exams listed below, this is your salary structure:
| Company | Short Name | Exam |
|---|---|---|
| New India Assurance Company Ltd. | NIACL | NIACL AO, NIACL Assistant |
| National Insurance Company Ltd. | NICL | NICL AO, NICL Assistant |
| Oriental Insurance Company Ltd. | OICL | OICL AO, OICL Assistant |
| United India Insurance Company Ltd. | UIICL | UIICL AO, UIICL Assistant |
| General Insurance Corporation of India | GIC Re | GIC Scale Officer |
| Agriculture Insurance Company of India Ltd. | AICIL | AICIL Officer |
Note: All GIPSA companies follow the same pay scales notified by the Ministry of Finance. Whether you join NIACL in Mumbai or UIICL in Chennai, your basic pay, HRA, CCA and all allowances are identical.
2. Officer Pay Scale 2026 — Scale I to VII (18th Schedule)
Officers are Class I employees. You join as an Administrative Officer (Scale I) after clearing the GIPSA recruitment exam and progress up to General Manager (Scale VII). The 18th Schedule is the most significant pay revision since 2017.
| Scale | Designation | Starting Basic Pay (₹) | Increment Structure | Maximum Basic Pay (₹) |
|---|---|---|---|---|
| Scale I | Administrative Officer (AO) | 82,485 | ₹4,050 × 14 steps + ₹4,390 × 4 steps | 1,56,745 |
| Scale II | Sr. Administrative Officer | 1,10,835 | ₹4,050 × 7 + ₹4,390 × 6 | 1,65,525 |
| Scale III | Assistant Manager | 1,35,135 | ₹4,050 × 1 + ₹4,390 × 6 + ₹5,785 × 4 | 1,88,665 |
| Scale IV | Deputy Manager | 1,65,525 | ₹5,785 × 9 | 2,17,590 |
| Scale V | Manager / AGM | 2,00,235 | ₹5,785 × 3 + ₹6,515 × 6 | 2,56,680 |
| Scale VI | Deputy General Manager | 2,24,105 | ₹6,755 × 8 | 2,78,145 |
| Scale VII | General Manager | 2,51,125 | ₹6,755 × 2 + ₹7,240 × 1 + ₹7,920 × 1 + ₹8,215 × 4 | 3,12,655 |
How big is this increase? The Scale I entry basic pay has jumped from ₹50,925 (old 16th Schedule) to ₹82,485 — a ~62% increase. Since DA, HRA, CCA and FPA are calculated as percentages of basic pay, the total emolument increase is even higher.
3. In-Hand Salary Estimate — Scale I Officer
Your take-home salary depends on your city of posting, DA rate (revised every quarter), and deductions. Below is a realistic monthly estimate for a freshly joined Scale I AO at basic pay ₹82,485:
| Component | Metro City | A-Class City | Other Cities |
|---|---|---|---|
| Basic Pay | ₹82,485 | ₹82,485 | ₹82,485 |
| Dearness Allowance (~55%+) | ~₹45,000+ | ~₹45,000+ | ~₹45,000+ |
| HRA | ₹8,250 (10%) | ₹6,600 (8%) | ₹5,774 (7%) |
| CCA | ₹2,475 (3%) | ₹2,062 (2.5%) | Nil |
| Transport Allowance | ₹3,300 | ₹3,300 | ₹3,300 |
| Fixed Personal Allowance (FPA) | ₹4,390 | ₹4,390 | ₹4,390 |
| Less: NPS (employee share 10%) | ~₹8,200 | ~₹8,200 | ~₹8,200 |
| Estimated Gross Monthly | ~₹1,08,000 | ~₹1,03,000 | ~₹97,000 |
Note: DA is revised quarterly based on AICPI (All India Consumer Price Index). Actual take-home will also depend on income tax slab and any loan deductions. Annual CTC including NPS, gratuity and medical benefits is significantly higher than the monthly gross figure.
4. HRA, CCA, Transport and Other Allowances — Officers
House Rent Allowance (HRA) — w.e.f. 1 August 2022
| City Category | Examples | HRA Rate | Maximum (₹/month) |
|---|---|---|---|
| Metro / Tier-1 | Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad, Faridabad, Ghaziabad, Noida, Gurgaon | 10% of Pay | ₹13,000 |
| Cities with pop. >12 lakh + all of Goa | Excluding metros listed above | 8% of Pay | ₹11,000 |
| All Other Places | Remaining cities and towns | 7% of Pay | ₹10,500 |
City Compensatory Allowance (CCA) — w.e.f. 1 August 2022
| Class | Cities | Rate | Max (₹/month) |
|---|---|---|---|
| Metro | Same 13 metro cities as HRA above | 3% of Pay | ₹3,300 |
| A Class | Pop. >12 lakh (excl. metro) + all Goa cities | 2.5% of Pay | ₹3,100 |
| B Class | Pop. 5–12 lakh; State capitals (pop. ≤12L); Chandigarh, Mohali, Panchkula, Pondicherry, Port Blair | 2% of Pay | ₹2,400 |
| C Class | All other cities | — | NIL |
Fixed Personal Allowance (FPA) — Scale-wise
| Scale | FPA (₹/month) | Counts as Basic Pay for |
|---|---|---|
| Scale I & II | ₹4,390 | HRA, PF, Pension, Gratuity, Leave Encashment |
| Scale III & IV | ₹5,785 | Same as above |
| Scale V | ₹6,515 | Same as above |
| Scale VI | ₹6,755 | Same as above |
| Scale VII | ₹8,215 | Same as above |
Other Allowances — Summary
| Allowance | Amount | Key Condition |
|---|---|---|
| Transport Allowance | ₹3,300/month | For officers not covered under any conveyance reimbursement scheme |
| Hill Station Allow. (altitude ≥1,500m) | 2.5% of Pay, max ₹2,055/month | Payable from month following gazette / date of posting to hill station |
| Hill Station Allow. (1,000–1,500m) | 2% of Pay, max ₹1,650/month | Also for Mercara and other declared hill stations |
| Kit Allowance (one-time, hill posting) | ₹14,800 | Not payable if already drawn; not payable on hill-to-hill transfer |
| Paradeep Port Allowance | ₹440/month | Only for confirmed officers posted at Paradeep Port office. Does NOT count as Basic Pay. |
Exam Tip: FPA (Fixed Personal Allowance) counts as Basic Pay for HRA, Provident Fund, Pension, Gratuity and Leave Encashment — this distinction is frequently tested in GIPSA internal promotion exams and IC-series papers. Paradeep Port Allowance does NOT count as Basic Pay for any purpose.
5. Development Officer Salary 2026 — Schedule K
Development Officers (DOs) are Class II field officers. Their pay scales have been revised under the new Schedule K:
| Grade | Starting Basic Pay (₹) | Increment Structure | Maximum Basic Pay (₹) |
|---|---|---|---|
| DO Grade I | ₹58,010 | ₹3,640×8 + ₹3,770×9 + ₹3,945×2 + ₹4,050×4 | ₹1,45,150 |
| DO Grade II | ₹39,385 | ₹2,600×3 + ₹2,960×4 | ₹59,025 |
DO Allowance Caps
| Allowance | Metro | A Class | B Class |
|---|---|---|---|
| HRA | 10%, max ₹13,000 | 8%, max ₹11,000 | 7%, max ₹10,500 |
| CCA | 3%, max ₹2,800 | 2.5%, max ₹2,600 | 2%, max ₹2,300 |
| FPA — Grade I | ₹4,050/month (counts as Basic Pay for HRA, PF, Pension) | ||
| FPA — Grade II | ₹2,960/month | ||
Special Arrear Rule for DOs: Full arrears are payable from 1 April 2023 only. For the period 1 August 2022 – 31 March 2023, DOs receive an “Equitable Relief” (the difference between old and new gross emoluments, with consequential adjustment of PF, Pension, Gratuity and Leave Encashment). This is unique to the Development Officer cadre.
6. Assistant / Clerk / Subordinate Staff Salary 2026 — 12th Schedule
Class III (Supervisory and Clerical) and Class IV (Subordinate Staff) employees now get the 4th Rationalised Pay Scales under the 12th Schedule:
| Post | Starting Basic Pay (₹) | Maximum Basic Pay (₹) |
|---|---|---|
| Senior Assistant / Stenographer | ₹50,815 | ₹1,26,125 (+stagnation up to ₹1,50,425) |
| Assistant, Typist, Telephone Operator, Receptionist, etc. | ₹36,290 | ₹1,00,865 (+stagnation up to ₹1,29,215) |
| Record Clerk | ₹33,670 | ₹90,570 |
| Driver | ₹33,670 | ₹78,060 |
| Other Subordinate Staff | ₹29,320 | ₹67,095 |
Key Allowance Differences — Clerical vs Officers
| Allowance | Officers | Clerical / Subordinate Staff |
|---|---|---|
| Transport Allowance | ₹3,300/month | ₹1,200/month |
| CCA Metro Cap | ₹3,300/month | ₹2,600/month |
| Kit Allowance (hill posting) | ₹14,800 (one-time) | ₹3,700 (once in 3 years) |
| FPA — Sr. Asst / Steno / Asst | ₹4,050/month | |
| FPA — Record Clerk | — | ₹2,560/month |
| FPA — Driver / Subordinate Staff | — | ₹1,880/month |
7. NPS and Family Pension — What Changed?
NPS Employer Contribution — Revised Upward
| Contribution | Old Rate | New Rate (w.e.f. 1 Aug 2022) |
|---|---|---|
| Employer (Company) → NPS | 10% of Basic + DA | 14% of Basic + DA |
| Employee → NPS | 10% of Basic + DA | 10% of Basic + DA (unchanged) |
For a Scale I officer with basic pay ₹82,485 and DA ~55%, the monthly basic+DA is ~₹1.28 lakh. Employer NPS contribution rises from ₹12,800 to ₹17,920 per month — an extra ₹5,120/month or ₹61,440/year going into your retirement corpus.
Family Pension — New Formula (S.O. 719)
| Component | Rate | Minimum |
|---|---|---|
| Basic Family Pension | 30% of Pay | ₹375/month (category a) |
| Additional Family Pension | 30% of PF-counted allowances (excluding DA) | ₹720/month (cat. b); ₹1,100/month (cat. c) |
8. Arrears — Who Gets What?
Since the revision is retrospective from 1 August 2022, employees will receive the difference between old and new salary for all past months:
| Your Status | Arrears Entitlement |
|---|---|
| ✅ Currently serving (as on gazette date) | Full arrears from 1 Aug 2022 (or date of joining, whichever is later) |
| ✅ Retired after 1 Aug 2022 | Arrears up to date of retirement + difference in gratuity amount |
| ✅ Died in service after 1 Aug 2022 | Arrears to PF nominee up to date of death + gratuity difference to gratuity nominee |
| 📋 Development Officers (serving) | Arrears from 1 Apr 2023 + Equitable Relief for Aug 2022 – Mar 2023 |
| ⏳ Opted for a later start date | Arrears only from chosen date (no arrears for prior period) |
| ❌ Resigned or terminated between 1 Aug 2022 and gazette date | NOT ELIGIBLE for arrears |
30-Day Option Window: Employees who want to choose a specific date for revised pay fixation (between 1 Aug 2022 and the gazette date) must submit written intimation to their Corporation/Company within 30 days of gazette publication. No arrears will be payable before the chosen date.
9. Promotion Path and Salary Growth
| Stage | Designation | Scale | Min. Basic Pay (₹) | Approx. Timeline |
|---|---|---|---|---|
| Entry | Administrative Officer (AO) | Scale I | ₹82,485 | On joining |
| L2 | Senior Administrative Officer | Scale II | ₹1,10,835 | ~3–5 years |
| L3 | Assistant Manager | Scale III | ₹1,35,135 | ~8–10 years |
| L4 | Deputy Manager | Scale IV | ₹1,65,525 | ~12–15 years |
| L5 | Manager / AGM | Scale V | ₹2,00,235 | ~18–20 years |
| L6 | Deputy General Manager | Scale VI | ₹2,24,105 | ~22–25 years |
| L7 | General Manager | Scale VII | ₹2,51,125 | Senior cadre |
Promotions are through Annual Performance Appraisal (APAR), internal departmental exams and seniority. Each scale jump also raises DA, HRA, CCA and FPA — making total emoluments grow substantially at every promotion.
10. Frequently Asked Questions (FAQs)
Q1: What is the in-hand salary of a GIPSA Scale I AO after the 2026 revision?
After the 18th Schedule revision, a freshly joined Scale I AO earns approximately ₹1.05–1.10 lakh gross per month in metro cities. After NPS deduction (~₹8,200), the estimated take-home is around ₹95,000–1,00,000. In non-metro cities it ranges from ₹88,000–95,000. Exact amount depends on DA rate and income tax slab.
Q2: Is the 2026 revision applicable to NIACL, NICL, OICL and UIICL?
Yes. The gazette notification S.O. 716–719(E) dated 11 Feb 2026 applies to all GIPSA companies — NIACL, NICL, OICL, UIICL, GIC Re and AICIL. All these companies follow identical pay scales notified by the Ministry of Finance under the General Insurance Business (Nationalisation) Act, 1972.
Q3: How much arrears will current employees receive?
Arrears cover approximately 42 months (1 August 2022 to implementation date). For a Scale I officer, the monthly difference between old and new salary is significant, and the total lump-sum arrear payout is expected to run into several lakhs per employee.
Q4: What is the new NPS employer contribution?
The employer’s NPS contribution has been revised from 10% to 14% of Basic Pay + DA, effective from 1 August 2022. This substantially boosts the long-term retirement corpus of all GIPSA employees.
Q5: GIPSA Scale I vs LIC AAO — which pays more now?
After the 2026 revision, GIPSA Scale I basic pay (₹82,485) is broadly comparable to LIC AAO emoluments. Both offer 5-day working weeks, DA, HRA, CCA and NPS. The salary gap between the two sectors has narrowed significantly post this revision. LIC has a defined-benefit pension; GIPSA follows NPS (defined contribution) with 14% employer contribution.
Q6: What is the salary for passing III (Insurance Institute of India) exams?
Officers who clear III exams get a permanent monthly Technical Qualification Allowance: Licentiate: ₹915 | Associateship: ₹2,485 | Fellowship: ₹4,245. Only one allowance is payable at a time (the highest applicable). Clearing Fellowship adds ₹4,245/month permanently to your salary, on top of basic pay and all other allowances.
Q7: What is the starting salary of a GIPSA Assistant (Clerical) after revision?
Starting basic pay for an Assistant is ₹36,290. With DA, HRA, CCA, FPA (₹4,050) and Transport Allowance (₹1,200), the estimated gross monthly salary for a metro-posted assistant is around ₹55,000–60,000.
Q8: Is a GIPSA officer a gazetted government officer?
No. GIPSA officers are employees of Public Sector Undertakings (PSUs) under the Ministry of Finance — not gazetted officers in the Central Government sense. However, the posts are permanent, have a defined salary structure, and carry the job security and social standing of a government job.
Conclusion
The GIPSA Pay Scale 2026 revision is one of the most significant salary overhauls in public sector insurance in recent years. With a Scale I entry basic pay of ₹82,485, estimated in-hand salary exceeding ₹1 lakh per month in metro cities, a 14% employer NPS contribution, and a clear promotional path from AO to General Manager (Scale VII, max basic ₹3,12,655), a career in GIPSA companies offers excellent financial security and long-term growth.
If you are preparing for NIACL AO, NICL AO, OICL AO or UIICL officer exams — this is the salary package you are working towards. Prepare well, clear the exam, and your financial future is set.
Source: Gazette of India Extraordinary, Part II – Section 3 – Sub-section (ii), S.O. 716(E), 717(E), 718(E) and 719(E), dated 11 February 2026. In-hand salary figures are estimates and may vary based on DA rate, city of posting, and individual deductions.
