Employees of the Life Insurance Company (LIC) should be happy to know that the Department of Financial Services (DFS) has allegedly raised salaries by only 16%. More than one lakh employees of LIC will benefit from salary revision along with many other perks.
The pay increase has actually come after a long time. Earlier, LIC employees received salary increases in August 2012, nine years ago. This was contrary to the culture of LIC, according to which the company usually revises the salary every five years. Since the difference between pay revisions was more than usual, employees were expecting an increase of about 35% in their salaries. However, they will now have to settle for a 16% increase.
In addition to increments, LIC According to media reports, employees are set to benefit in the form of a 5-day work week with immediate effect. Unlike other public sector bank employees, LIC employees can now enjoy a holiday every Saturday. It is important to note that many employee organizations have been demanding a five-day workplace for some time.
Apart from this, LIC has also approved an ‘Additional Special Allowance’ for all cadres. The range of newly introduced allowance ranges from Rs 1,500 to Rs 13,500 per month and will be represented under Dearness Allowance (DA) under the accounting books. However, it will not count towards other DA such as City Compensation Allowance (CCA), Gratuity, House Rent Allowance (HRA), Paid Leave Encashment and Superannuation Benefit, etc.
All the steps taken by LIC in favor of its employees have come at a time when the company is gearing up for its initial public offering (IPO), which could be India’s largest IPO till date.