Salaries of LIC employees will be increased by 15 to 25 percent: Employees of Life Insurance Corporation of India (LIC), the country’s largest insurer, have received very good news. Preparations are being made to drastically increase the salaries of LIC employees. The government has reportedly approved a 15 to 25 percent pay hike for LIC employees and a five-day-a-week work policy. This will benefit about 1.14 lakh employees of the Life Insurance Corporation of India. Significantly, the government is also preparing to launch an IPO of LIC, which is being opposed by employee unions.
According to sources, the central government on Thursday approved a revised pay package for LIC employees. This change will be effective from August 1, 2017. Shrikant Mishra, general secretary of the All India Insurance Employees Union (AIIIA), told PTI that the salaries of employees are likely to increase by 25 percent a month.
LIC pays Rs. 2,700 crore. Significantly, the union was demanding a 40 percent increase in the salaries of LIC employees. But last year there was talk of a maximum growth rate of 25 percent. The salary of all cadre employees is Rs. An additional allowance of Rs 1,500 to Rs 13,500 will be introduced, on the basis of which the inflation allowance will be calculated. Significantly, an agreement has been reached between the Bank Union and the Indian Banks Association on 5 days of work. This arrangement will also be implemented in LIC.
The government is preparing to bring LIC’s IPO by the end of this year. LIC will set a separate quota for subscribers in its IPO. 10% of the size of the issue will be reserved for the policyholders. Minister of State for Finance Anurag Thakur had recently said that the government would continue its controlling stake in LIC. This means that the company will be owned by the government. Thakur said the government would also have management control of the company to protect the interests of shareholders.