The Life Insurance Corporation of India (LIC) announced on March 15 that it has received approval from the Government for a wage revision for its employees, effective from August 1, 2022. In a press release issued by LIC, it has said that the government has given its nod to a 17% increase in the wage bill.
This announcement benefits over 110,000 employees across the organization, LIC stated. The contribution to the National Pension System (NPS) has been raised from 10% to 14% for nearly 24,000 employees who joined LIC after April 1, 2010. Additionally, a one-time ex-gratia payment has been disbursed to more than 30,000 LIC pensioners and family pensioners.
“The Govt. of India has approved 17% overall hike in wage bill w.e.f. 01/08/2022 & shall benefit more than 1.10 Lakh LIC Employees. NPS contribution is enhanced from 10% to 14% of nearly 24,000 employees who joined after 01/04/2010. One-time ex-gratia payment to LIC Pensioners also made to more than 30,000 pensioners & family pensioners. LIC of India thanks the Government of India for this wage revision,” LIC said in its press release.
Earlier, CNBC-TV18 reported citing its sources, that more than 1 lakh employees of LIC will see a 16% increase in their base pay starting August 2022, and when allowances are taken into account, the total wage rise could go up to 22%.
On March 15, LIC's shares on BSE closed trading 3.4 percent lower at Rs 926.
During a wage hike announced in 2021, LIC also declared Saturdays as a holiday for its employees.
Earlier this month, Centre hiked the dearness allowance (DA) to 50 percent of basic pay from the current rate of 46 percent effective from January 1 this year, benefitting over a crore employees and pensioners ahead of the Lok Sabha elections 2024.
Last month, LIC reported a 49 percent jump in net profit at Rs 9,444 crore for the third quarter ended December 2023 (Q3FY24). The country's biggest insurer reported a net profit of Rs 6,334 crore in the year-ago period.
Its net premium income rose to Rs 1,17,017 crore in the third quarter of the current fiscal from Rs 1,11,788 crore in the same period a year ago.
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