India
-Ashish Rana
The Uttar Pradesh government is set to sign a memorandum of understanding with the State Bank of India on 8 July to extend a special salary package and insurance benefits to nearly 10 lakh people working in council-run primary and upper primary schools. The move is expected to cover teachers, Shiksha Mitras, instructors, cooks and other school-level staff across the state.
On July 8th, the Uttar Pradesh government and SBI will sign an MoU providing a special salary package and insurance benefits to nearly 10 lakh school staff, aiming for financial security with life, accident, and disability cover based on role and salary.
The agreement will be signed by the Basic Education Department in the presence of Chief Minister Yogi Adityanath during a programme in Varanasi linked to cashless medical facility cards and Direct Benefit Transfer distribution. The package is aimed at giving social and financial security to both permanent and contractual staff attached to the state’s basic education system.
For years, teacher and employee groups had been demanding group insurance cover for school staff, especially because many contractual workers have limited institutional protection. The proposed arrangement with SBI is intended to bring a large section of education workers under a structured salary and insurance framework without requiring them to buy separate high-value accident cover on their own.
SBI salary package to cover nearly 10 lakh school workers
According to the plan, about 4.50 lakh permanent employees and 5.50 lakh temporary or contractual workers are expected to benefit from the SBI special salary package. The benefits will vary depending on the employee category and monthly salary. Permanent employees earning more than Rs 10,000 a month will receive a group term life insurance cover of Rs 10 lakh.
In addition, eligible permanent employees will get personal accident insurance cover of up to Rs 1 crore. The package will also include cover of up to Rs 1 crore in case of permanent disability and up to Rs 1.60 crore in the event of an air accident. These benefits are being positioned as part of a broader safety net for education staff and their families.
The scheme is significant because council schools form the backbone of public elementary education in Uttar Pradesh. Apart from regular teachers, the day-to-day functioning of these schools depends on Shiksha Mitras, part-time instructors, cooks involved in the mid-day meal system and other support staff. Many of them work on fixed honorarium or contractual terms and face higher financial vulnerability during emergencies.
What contractual staff will get under the insurance cover
Contractual employees earning more than Rs 10,000 a month will be eligible for an accident insurance cover of Rs 30 lakh under the proposed MoU. They will also get Rs 30 lakh cover in case of permanent disability and Rs 15 lakh in case of partial disability. For air accidents, the cover for this category will be Rs 30 lakh.
For employees earning less than Rs 10,000 a month, the benefits will be linked to zero-balance accounts and RuPay debit cards. Such workers will be eligible for insurance cover of Rs 1 lakh. This category is likely to include many lower-paid support staff, including school cooks and other workers who are not part of the regular salary structure.
The salary-linked model means that workers already having salary accounts with SBI will not necessarily need to open a new account. Their existing accounts will be converted into the relevant salary package. Those whose salary accounts are with other banks are expected to be encouraged to open SBI accounts so they can access the benefits under the agreement.
Add-on support for children’s education and daughters’ marriage
The proposed package also includes add-on cover for the education of employees’ children and for the marriage of daughters in case of an unfortunate incident involving the employee. This provision is aimed at reducing the financial shock faced by families after death, disability or a serious accident affecting the earning member.
Such add-on benefits are important in government-linked welfare arrangements because accident insurance alone may not meet long-term family needs. School employees, especially those on modest salaries, often support children’s education, household expenses and social responsibilities from limited income. A sudden loss of earning capacity can push families into debt or force children to discontinue studies.
The state government’s decision also comes at a time when salary accounts are increasingly being used to deliver wider financial services. Banks often provide additional benefits through salary packages, including accident cover, debit card-linked insurance and preferential banking services. In this case, the scale is much larger because the arrangement covers a major public workforce spread across urban and rural Uttar Pradesh.
For the Basic Education Department, the MoU could help standardise financial protection for employees who currently fall into different service categories. Regular teachers, contractual instructors, Shiksha Mitras and cooks do not have identical pay structures or service conditions. A common banking arrangement can still provide graded benefits based on salary level and employee status.
The practical impact will depend on how quickly accounts are mapped, converted or opened after the MoU is signed. Employees will need clear communication on eligibility, required documents, nomination details, claim procedures and the conditions attached to each insurance component. Without proper awareness, many families may struggle to access benefits at the time of need.
The 8 July agreement is therefore more than a banking tie-up. If implemented smoothly, it will create a safety layer for lakhs of people who keep Uttar Pradesh’s council schools running every day. The immediate priority after the signing will be ensuring that all eligible workers are enrolled correctly and informed about the cover available to them.
