LIC: The Indian government has given the green light for a significant wage increase for employees of the Life Insurance Corporation of India (LIC). This decision will result in a 17% overall hike in wages for more than 1.10 lakh employees of the insurance giant. The wage increase is set to take effect from August 1, 2022.
The Department of Financial Services (DFS), under the Ministry of Finance (MoF), has approved the wage revision, bringing cheer to the large workforce of LIC. This move is part of the government’s broader efforts to revise wages and improve conditions for employees in the public sector.
Details of the Wage Revision
In addition to the 17% wage hike, the revision also includes an increase in the contribution to the National Pension System (NPS) for nearly 24,000 employees who joined LIC after April 1, 2010. The contribution has been raised from 10% to 14%, providing a significant boost to the future financial security of these employees.
Furthermore, a one-time ex-gratia payment has been disbursed to more than 30,000 LIC pensioners and family pensioners. This additional payment is a welcome bonus for those who have served the corporation and are now in their retirement years.
Additional Special Allowance
As part of the wage revision, an additional Special Allowance has been introduced for all cadres. This allowance ranges between Rs.1,500 to Rs.13,500 per month. It’s important to note that this allowance will be reckoned for the purpose of calculation of dearness allowance (DA), but it will not count for any other purpose such as house rent allowance, city compensatory allowance, privilege leave encashment, gratuity, superannuation benefit, and others.
Impact on LIC Employees
The wage revision is a significant development for LIC employees, who have been awaiting this news. The increase in wages, the higher contribution to the NPS, and the one-time ex-gratia payment to pensioners are all measures that will greatly benefit the employees and their families. The wage revision is expected to have a positive impact on the morale and motivation of the LIC workforce, which is crucial for the corporation’s ongoing success.
In conclusion, the wage revision for LIC employees is a major step forward in improving the financial conditions of those working in the public sector. It demonstrates the government’s commitment to ensuring fair wages and benefits for its employees.
