More than one lakh employees of Life Insurance Corporation of India (LIC) will receive 16 per cent hike in wages, as approved by the Centre. They will also enjoy a five-day work week. That means all Saturdays will be non-working days.
The wage revision will come into effect from August 1, 2017. Employees across cadres will also be eligible for an additional special allowance in the range of Rs 1,500 to Rs 13,500 per month, which shall be used to calculate dearness allowance (DA), but will not count for house rent allowance, city compensatory allowance, privilege leave encashment, gratuity, superannuation benefit, or any other allowance.
The wage revision has been due since August 1, 2017, the longest delay ever. Each revision is usually applicable for five years.
The wage revision has come post a bilateral agreement between bank unions and Indian Banks’ Association.
The overall hike in the total wage bill for LIC is expectedto be around Rs 2,700 crore per year.
All India Insurance Employees Association (AIIEA) had submitted a list of demands, amongst which was 40 percent wage hike. In the previous wage agreement, the increment given was 25 percent on an average.
While wages are revised by the unions, the final wage structure is approved and decided by the Government via a gazette notification. This wage revision comes ahead of the planned IPO of the insurance major.