New Delhi: The Central government has approved a 16 percent hike in basic salary for the Life Insurance Corporation of India (LIC) employees. The hike will be implemented starting from August 2022, which means the employees will get arrears for the past two years, as per reports given by CNBC-TV18.
According to reports, with the allowances included, the overall salary could go up to 22 percent. The development has come as a relief to more than 1 lakh employees and 30,000 pensioners associated with LIC.
Reportedly, this hike is set to have a substantial financial impact, with an estimated annual implication of over RS 4,000 crore for LIC. Following the hike, LIC’s salary bill is expected to rise to more than Rs 29,000 crore.
This hike will also benefit 30,000 pensioners of the insurance firm. The annual implication of salary increment for LIC is being expected at Rs 4,000, said reports.
While expressing gratitude to the government for the salary hike, LIC mentioned that the National Pension System (NPS) contribution is enhanced from 10% to 14% for nearly 24,000 employees who joined after April 1, 2010. Additionally, a one-time ex-gratia payment to LIC pensioners was also made to more than 30,000 pensioners and family pensioners.
It is worth mentioning here that LIC saw a 49 per cent year-on-year increase in net profit during the December quarter of Financial Year 2024, reaching Rs 9,444.4 crore compared to Rs 6,334.2 crorein December 2023.
Earlier this month, the central government hiked the dearness allowance (DA) to 50 percent of basic pay from the current rate of 46 per cent effective from January 1, 2024. This will benefit over a crore employees and pensioners ahead of the Lok Sabha elections 2024.
Ms Kalinga