The Union Finance Ministry has recently notified the wage revision for LIC employees, which will benefit over 1.1 lakh employees in the state-run insurance company. Some key points of the recently notified wage settlement for LIC (Life Insurance Corporation of India) employees are as under:

Wage Revision:

  • The revision amounts to an annual increase of about 17% in wages and is applicable from August 1, 2022.
  • The wage revision will have an annual implication of around Rs 4,000 crore, taking LIC’s overall wage bill per year to about Rs 29,000 crore.
  • Despite the model code of conduct in place for the seven-phase Lok Sabha elections, the Department of Financial Services (DFS) in the Finance Ministry proceeded with the wage revision for LIC employees after obtaining the Election Commission of India’s approval.
  • National Pension System (NPS) contribution has been enhanced from 10% to 14% for nearly 24,000 employees who joined LIC after April 1, 2010.
  • A one-time ex-gratia payment has been disbursed to over 30,000 LIC pensioners and family pensioners.

Scales of pay Class-I Officers
Details of wage revision- click here:
In addition to the key features mentioned above, the recent wage settlement for LIC employees includes several other benefits, such as, Performance-Linked Incentives (PLIs), Additional Leave Encashment, Special Allowances and Reimbursements, Enhanced Gratuity etc.

This wage revision ensures better compensation, improved retirement benefits, and a positive impact on the lives of employees and their families across the country.

Interestingly, the latest wage hike for LIC employees is in sync with the 17 per cent wage increase handed out to over 8.5 lakh bank employees with effect from November 2022 under a bipartite wage settlement agreement entered between bank unions and the Indian Banks Association (IBA)

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