Good News: Government approves 17% wage hike for LIC employees

The Indian government has given the green light for a significant 17% increase in wages for over 1.10 lakh employees of the renowned Life Insurance Corporation of India (LIC). This approval follows closely on the heels of a similar wage raise sanctioned for public sector bank employees.

Effective from August 1, 2022, the wage hike for LIC employees marks a substantial boost in their remuneration. Additionally, the government has enhanced the contribution to the National Pension System (NPS) from 10% to 14% for approximately 24,000 employees who joined LIC after April 1, 2010. 

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 per cent to 14 per cent. 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.”

LIC expressed gratitude to the government for this revision and also announced a one-time ex-gratia payment to more than 30,000 pensioners and family pensioners.

The decision to increase wages comes as a welcome boon for LIC personnel, especially ahead of the Lok Sabha elections and the festival of Holi. The wage hike, aligning with the recent hike in Dearness Allowance (DA) for central and state employees, will benefit over 110,000 employees across the country, offering them improved financial security and well-being.

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 per cent to 14 per cent.

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.