The new fiscal year 2020-21 has started for about 1.14 lakh employees of LIC on a happy note with over 25% hike in their pay packets. The Central Government has recently notified the revised pay packets for LIC employees. The wage revision is effective from 1.8.2017.
Shreekant Mishra, General Secretary, All India Insurance Employees Association remarked, “The employees are happy with the wage revision that has come at a difficult situation. The pay hike for the employees is expected to be over 25% per month.”
He said a loading of 15% has been given after 100% neutralization of dearness allowance at 6,352 points of consumer price index. An additional Special Allowance ranging between Rs. 1,500 to Rs. 13,500 per month has been introduced for all cadres, which shall be reckoned for the purpose of calculation of dearness allowance but will not count for any other purpose i.e. house rent allowance, city compensatory allowance, privilege leave encashment, gratuity, superannuation benefit and others.
Mishra stated the overall increase in LIC’s total wage bill will be about Rs. 2,700 crore per year. He also said it will be five-day week for LIC employees.
He further added, “In the first round, the management offered 10% wage hike and it was revised upwards in the second round to 15%. We said the offer does not meet our expectations.” According to him, the 15% wage hike offer was made on September 30, 2020 and the first offer of 10% hike was made in March, 2019.