More than a lakh employees of Life Insurance Corporation of India (LIC) may finally have some reason to celebrate. If all goes well at the virtual conference today, wherein the chairman of LIC will discuss the issue of wage revision with union representatives, the employees may actually receive a jump of 18 to 20 per cent.
The management of LIC had last offered to revise the wage by 16 per cent. It had also announced a 100 basis point cut in rate of interest on housing loans availed by various staff.
With the insurance firm gearing to go public with the biggest ever initial public offering, there are rumours that employees may end up getting a hike of about 18 to 20 per cent.
The wage revision has been due since August 1, 2017, the longest delay ever. Each revision is usually applicable for five years.
Bank staff received an increment of 15 per cent in gross salary, excluding superannuation, following the latest bipartite agreement.
However, in case of insurance employees, post the virtual meeting today, the final decision on the issue of increments for LIC staff can only be taken after the final proposal is approved by the Government. The Finance Ministry has the right to alter the proposal if it so wishes before issuing a notification and without any consultation with the unions.
In case of bank employees, no changes can be made to the bipartite wage settlement without the unions’ approval.