1.1 Lakh LIC Employees Will Get 25% Salary Hike, 5-Day Work Week; Upto Rs 13,000 Allowance/Month & More
The Department of Financial Services (DFS) of the Finance Ministry has approved the wage revision. A 16 per cent wage hike for Life Insurance Corporation of India (LIC) employees, sources told the Business Standard.
Over one lakh LIC employees are expected to benefit from the wage revision, the report noted. Moneycontrol could not independently verify the report.
LIC employees To Get Wage Hike
The government has finalised a hike of more than 25 per cent and a five-day week policy for the 1.14 lakh LIC employees, a top union leader told news agency IANS on Friday.
“The employees are happy with the wage revision that has come at a difficult situation. The pay hike for the employees is expected to be over 25 per cent a month,” Shreekant Mishra, General Secretary, All India Insurance Employees Association (AIIEA) told IANS.
According to the study, this will result in a total wage bill rise of Rs 2,700 crore for LIC. The hike includes a loading of 15 per cent given after 100 per cent neutralisation of dearness allowance (DA) at 6,352 points of the consumer price index (CPI)
Other Benefits Apart From The Wage Revision
With immediate effect, LIC employees have the approval for a 5-day workweek. LIC workers, unlike public sector bank employees, will also have Saturdays off. Both cadres will receive an ‘additional special payment’ ranging from Rs 1,500 to Rs 13,500 per month.
This will be used to calculate dearness allowance (DA), but it will not be used for other purposes including city compensation allowance (CCA), gratuity, house rent allowance (HRA), paid leave encashment, and superannuation gain, among others.
The wage increase comes after a long wait since the last one in August 2012. Salary checks at LIC are normally done every five years, but this one has been pending since August 2017. Employees were also anticipating a 35 per cent pay increase, but only 16 per cent has been approved.
In her Union Budget 2021 speech on February 1, Finance Minister Nirmala Sitharaman declared that the government would list LIC in FY22. The initial public offering of LIC is expected to raise about Rs 1 lakh crore for the government (IPO).