The new fiscal year 2020-21 has begun on a happy note for around 1.14 lakh employees of Life Insurance Corporation of India (LIC) with a pay hike of over 16%, according to the Union Leader. The revised pay packets for LIC employees were announced by the central government on Thursday. The wage increase will take effect on January 1, 2017.
"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) told IANS.
According to him, a 15% loading was applied after the dearness allowance (DA) was completely neutralised at 6,352 points on the consumer price index (CPI).
For all cadres, an additional Special Allowance ranging from Rs.1,500 to Rs.13,500 per month has been implemented, which will be used to calculate dearness allowance (DA) but will not be used for any other reason, such as house rent allowance, city compensatory allowance, privilege leave encashment, gratuity, superannuation income, and so on.
According to Mishra, the LIC's total wage bill will rise by around Rs 2,700 crore per year. He also mentioned that LIC workers would work a five-day week.
The LIC initial public offering (IPO) will be India's largest ever. The insurer is India's oldest and biggest, with a 72 percent market share and a 66.24 percent share of total first-year premium collection. LIC's overall value is estimated to be between Rs 9-10 lakh crore. With a cumulative premium set of Rs 45 lakh crore, LIC has 28 cores of policies in force.
Highlights of the announcement:
1) LIC employees to get a pay hike of over 16%
2) Special Allowance ranging from Rs.1,500 to Rs.13,500 per month has been implemented
3) Dearness Allowance (DA) neutralised at 6,352 points
4) Five day week for LIC employees.