Big Bonanza For LIC Employees; Government Approves 17% Wage Hike

New Delhi: Ahead of the Loksabha elections and the Holi, the government has brought good news for LIC employees. Effective August 2022, Life Insurance Corporation of India personnel are set to receive a 17 percent wage hike. The decision comes after a DA hike for central and many state employees.

Number Of Employees That Can Be Benefited

As per the reports, over 110,000 employees across the nation have benefited from the announcement of a wage hike. (Also Read: Festival Bonanza For State Employees Ahead Of Holi! Madhya Pradesh Govt Announces 4% DA Hike)

LIC's Statement

"The changes mean that nearly 24,000 employees who joined after April 1, 2010, will see their NPS contributions rise from 10 percent to 14 percent. Also, LIC pensioners will receive a one-time extra payment to show gratitude for their hard work, benefiting over 30,000 pensioners and their families. The government had already increased family pensions, helping more than 21,000 families, the official statement reads." (Also Read: Opportunity To Invest In These SBI Higher Rates FD To Close On March 31: Check Interest Rates, Tenures & More)

The insurer further said "This complete revision will benefit both current and former LIC employees, and it will also make LIC a more appealing place to work for future generations. LIC appreciates the Government of India for approving this wage increase, which will help all LIC employees and their families throughout the nation."

Wage Revisions At LIC

LIC, as a routine practice, conducts wage revisions for its employees every five years.

NPS Contribution

Apart from the wage hike, the announcement incorporates many revisions. One of the key components is an increase in the National Pension System contribution from 10 percent to 14 percent.

NPS Contribution Increase

The alterations in NPS contribution are mainly for approximately 24,000 employees who joined the organization after April 1, 2010. 

One-time Ex-Gratia Payment

The wage revision entails a one-time ex-gratia payment for LIC pensioners. This gesture of appreciation will benefit over 30,000 pensioners and family pensioners.