In a recent analysis conducted by the All India Bank Officers’ Association, it has been revealed that officers of the Life Insurance Corporation of India (LIC) have received a more favorable wage settlement deal compared to their counterparts in state-owned banks.
According to the association, the starting pay of the lowest-grade officer in LIC, in which the government holds a 96.50 percent stake, is ₹40,155 higher per month than that of a public sector bank (PSB) peer. The entry-level salary in LIC amounts to ₹88,635 per month, while it is ₹48,480 in a PSB. In the top-management grade, an LIC officer earns ₹3,37,945 per month, whereas their PSB counterpart earns ₹1,73,860.
S Nagarajan, the General Secretary of AIBOA, emphasized that the wage revision is not an act of benevolence but a legitimate demand of the workforce to share in the wealth and prosperity created by their industry.
The latest wage revision for LIC employees is effective from August 1, 2022, while for PSB employees, it is effective from November 1, 2022. The wage revision for LIC, which has been approved by the government, will result in a 17 percent increase in the life insurer’s annual wage bill.
Bank unions have also agreed to a 17 percent increase in salary as part of the 12th industry-wide bipartite wage settlement.
Nagarajan highlighted that in the previous wage revision for LIC employees, the dearness allowance (DA) per four points raise was 0.08 percent, meaning the compensation against the price rise was 108.10 percent, while in the banking industry, it was 100 percent.
In addition to the wage revision, LIC workers have been granted a five-day work week since August 1, 2021.
Nagarajan stressed the need for parity in the DA compensatory system for LIC and PSB officers. He mentioned that although they have achieved financial benefits through wage revision without resorting to any actions, their main demands regarding LTC monetization for SBI officers and a five-day work week are still pending. He assured that they will continue to pursue these demands through sustained action programs involving all officers.