The Centre has cleared a 17% overall hike in salaries for 1.10 lakh employees of the Life Insurance Corporation of India (LIC), bringing an early Holi celebration, the festival of colours. Coming days after the government cleared a similar raise for the employees of public sector banks, the salary revision for LIC employees is effective from August 1, 2022, the state-owned insurance behemoth said in a statement.
The National Pension System (NPS) contribution is enhanced from 10% to 14% for nearly 24,000 employees who joined after April 1, 2010, the LIC said while expressing gratitude to the government for the wage revision.
Not just that, a one-time ex-gratia payment to LIC pensioners was also made to more than 30,000 pensioners and family pensioners, it said.
The hike is set to substantially impact LIC, with an estimated annual implication of over ₹4,000 crores. Once the increments are implemented, LIC's annual wage bill will swell to over ₹29,000 crore.
In the current fiscal year, however, inclusive of arrears, the financial implications for the corporation will be higher at ₹7,000 crore—taking FY24's total wage bill to ₹32,000 crore.
(Edited by : Ajay Vaishnav)
First Published: Mar 15, 2024 6:41 PM IST
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