LIC employees' wage hike proposal yet to get government approval

A revision in wages for more than 100,000 employees of Life Insurance Corporation (LIC) is yet to get a go-ahead from the Department of Financial Services (DFS).

However, sources said the approval from DFS may come any time and as soon as LIC gets the go-ahead, a wage revision package will be announced.

“It is under process and with the ministry. Whenever it happens, we will share with the employees,” said a source in LIC.

In the case of LIC, all rules and regulations regarding employees are decided by the government, the source added.

The employees had sought a basic raise of 35 per cent but LIC offered only 15 per cent. However, employees and unions are expecting 18-20 per cent revision after negotiations.

Normally, wage revisions for LIC employees take place after every five years. The last wage revision that took place was in August 2012. A revision in wages has been pending since August 2017.

“The unions are also demanding five-day week for the employees. Even if the employees do not get a promotion, they should get an increment. So, we are demanding the abolition of stagnated increments. We have also demanded open recruitment and absorption of class III and class IV employees,” said Rajesh Nimbalkar, general secretary, All India National Life Insurance Employees Federation.

The central government is looking to list LIC on the bourses in the current financial year (FY22) and the government is expected to mop up around Rs 1 trillion from the initial public offering.