This will benefit more than one lakh employees of Life Insurance Corporation of India (LIC). According to sources, the central government has approved the revised salary package for LIC employees on Thursday.
The employees of Life Insurance Corporation of India (LIC), the largest insurance company in the country, have received very good news. Preparations are being made to make a tremendous increase in the salary of LIC employees. It is reported that the government has approved the increase in salaries of LIC employees from 15 to 25 per cent to 25 per cent and work policy five days a week.
This will benefit about 1.14 lakh employees of Life Insurance Corporation of India (LIC). Significantly, the government is also preparing to bring an IPO of LIC, which the employees unions are opposing.
What will change
According to sources, the central government has approved the revised salary package for LIC employees on Thursday. This change will be considered applicable from August 1, 2017. All India Insurance Employees Union (AIIEA) General Secretary Shrikant Mishra told news agency IAANS, “The salary for employees is expected to increase by 25 per cent per month.”
LIC may have to spend an additional Rs 2,700 crore every year on this. Significantly, the union was demanding a 40 per cent increase in salaries of LIC employees. But there was talk of increasing the maximum 25 per cent growth last year. An additional allowance of Rs 1,500 to Rs 13,500 will be introduced in the salary of all cadre employees, based on which the dearness allowance will be calculated.
Significantly, there is an agreement between Bank Union and Indian Banks Association on 5 days work. This arrangement will also be implemented in LIC.
This is an IPO plan
The government is preparing to launch an IPO of LIC by the end of this year. LIC will set a separate quota for subscribers in its IPO. 10% of the issue size will be reserved for policy holders. Minister of State for Finance Anurag Thakur recently said that the government will continue to have a controlling stake in LIC. This means that the ownership of the company will remain with the government. Thakur said that the management control of the company will also remain with the government to protect the interests of the shareholders.
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