Govt approves 17% wage hike for 1.10 lakh employees of LIC

The Indian government has given the green light for a significant 17% wage hike benefiting over 1.10 lakh employees at the Life Insurance Corporation of India (LIC), the country's leading insurance giant. This approval closely follows a similar increase granted to employees of public sector banks.

Effective from August 1, 2022, LIC employees will see a retroactive implementation of the wage augmentation, as confirmed by the insurer. Furthermore, the contribution to the National Pension Scheme (NPS) has been raised from 10% to 14% for approximately 24,000 employees who joined after April 1, 2010. LIC has expressed its gratitude to the government for this revision.

Additionally, a one-time ex-gratia payment has been dispersed to more than 30,000 pensioners and family pensioners affiliated with LIC.

This development mirrors the recent government approval of a 17% wage hike for bank employees, effective November 1, 2022.