Government Approves Salary Increment Proposal of Life Insurance Corporation (LIC) Employees

More than a lakh employees of state-owned insurance behemoth -- Life Insurance Corporation (LIC) -- are in for cheer as the Department of Financial Services (DFS), Ministry of Finance (MoF), has given a go-ahead to the wage revision of LIC employees. The approved hike given in the wage bill is 16 per cent, according to sources aware of the development.

A loading of 15 per cent has been given after 100 per cent of neutralisation of dearness allowance (DA). Also, another major development that will bring cheer to LIC employees is, the government has given a go-ahead to a five-day.

“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 per month,” Shreekant Mishra, General Secretary, All India Insurance Employees Association (AIIEA) is quoted in media.

He said loading of 15 per cent has been given after 100 per cent neutralization of dearness allowance (DA) at 6,352 points of a consumer price index (CPI).

An additional Special Allowance ranging between Rs.1,500 to Rs.13,500 per month has been introduced for all cadres, which shall be reckoned for the purpose of calculation of dearness allowance (DA) but will not count for any other purpose i.e. house rent allowance, city compensatory allowance, privilege leave encashment, gratuity, superannuation benefit and others.

Mishra said the overall increase in LIC’s total wage bill will be about Rs 2,700 crore per year.