The Centre has sanctioned a substantial 16% increase in basic pay for employees of the Life Insurance Corporation of India (LIC), a move set to benefit nearly 1 lakh employees and around 30,000 pensioners. This revision, effective from August 2002, is expected to incur an annual cost of Rs 4,000 crore for the company.
Enhancements and Benefits
The revised pay structure includes a significant enhancement in the National Pension System (NPS) contribution from 10% to 14%, aimed at securing the future of approximately 24,000 employees who joined LIC after April 1, 2010. Additionally, a one-time ex-gratia payment to LIC pensioners has been included as a token of appreciation for their invaluable contributions to the organization. This gesture will directly benefit over 30,000 pensioners and family pensioners. Moreover, the government’s earlier decision to augment the quantum of family pension has already positively impacted more than 21,000 family pensioners.
In a statement, LIC expressed gratitude to the Government of India for initiating this comprehensive wage revision, emphasizing its favorable implications for both past and present generations of LIC employees. Furthermore, this revision is expected to enhance LIC’s appeal as an employer for future generations, making it a more attractive career choice nationwide.
Implications and Recent Developments
The approval of this hike follows the government’s recent decision to increase Dearness Allowance by 50%. Consequently, employees under the central government will experience a 4% rise in their dearness allowance, as per the latest announcement.
