LIC rolls out 16% salary hike, 5-day-work week, and special allowance
After a long time, Life Insurance Company (LIC) has announced a salary hike of 16% for all employees. Over one lakh employees of LIC will benefit from the wage revision that has come along with several other perks.
Earlier to this, LIC employees got a wage hike nine years ago in August 2012. However, the company usually revises the salary every five years. Since the gap between the salary revision was more than usual, employees were expecting about a 35% hike in their wages. But, they would now have to settle for a 16% raise.
In addition to the salary hikes, LIC has also announced a 5-day-work week for employees with immediate effect, It would be every Saturday off from now onwards unlike public sector bank employees. Reportedly, several employees in organizations were demanding a five-day work week for quite some time.
Furthermore, that insurance company has also announced an ‘Additional Special Allowance’ for all cadres. The newly introduced allowances range from Rs 1,500 to Rs 13,500 per month and will be represented under dearness allowance (DA) under accounts books.
However, it won’t count towards other DAs such as city compensation allowance (CCA), gratuity, house rent allowance (HRA), paid leave encashment and superannuation benefit, etc.
All the steps taken by the LIC in favour of its employees have come at a time when the company is gearing up for its initial public offering (IPO), which could be the largest IPO India has ever witnessed.
Notably, Finance Minister Nirmala Sitharaman – in her Union Budget 2021 speech on February 1 – announced that the government would list LIC in FY22. The government expects around Rs. 1 lakh crore from LIC’s initial public offering (IPO).
