The employee unions of the Life Insurance Corporation of India (LIC) dismissed the company’s proposed 14 per cent salary increase, on Friday, 16 February. The state-owned life insurer had presented the salary hike proposal during a meeting with the All India National Life Insurance Employees Federation and other unions within LIC.
A statement released by the unions revealed that all LIC unions have declined the given offer from LIC management, deeming it inadequate in recognising the dedication and commitment of LIC employees to the institution.
Reacting to the decision, the company’s spokesperson expressed disappointment among employees, citing the public-sector insurer’s strong performance across various parameters.
In the third quarter of the current fiscal year (FY24), LIC reported a substantial 49 per cent year-on-year (Y-o-Y) increase in net profit, reaching Rs 9,444.42 crore from Rs 6,334.19 crore. The Value of New Business (VNB) margin, a key profitability metric, rose to 20.01 per cent in the quarter, compared to 14.62 per cent in Q3FY23.
During the same quarter, the corporation’s remuneration and welfare expenses for employees surged by nearly 71 per cent to Rs 9,543.68 crore from Rs 5,579.55 crore in Q3. LIC adheres to a five-year wage revision policy, with the last adjustment occurring in 2017 and the subsequent revision slated for 2022.
The corporation also stated that during its 2017 wage revision, all employees received an increase of approximately 20-25 per cent, and this time, it anticipates a similar hike of around 22 per cent.
The next meeting between the employee unions and LIC is to take place in Mumbai, although the specific date is yet to be determined.
