Finance minister Nirmala Sitharaman
Sources in the industry inform that Sitharaman,who had refused her final approval to the wage hike proposal unless unions of the PSU GI industry agree for the “Performance Linked Future Wage Revision’’, had changed her mind to approve the current wage hike proposal of the industry
New Delhi:
In a sort of Diwali gift to the 44,000 workforce of the PSU general insurance industry, Finance minister Nirmala Sitharaman, after her initial reluctance, has finally approved a 12 percent salary hike with five years arrears,since August 2017,for the industry.
Sources in the industry inform that Sitharaman,who had earlier refused her final approval to the wage hike proposal, unless unions of the PSU GI industry agree for the “Performance Linked Future Wage Revision’’, had changed her mind to approve the proposal.
The FM’s approval has reached department of financial services(DFS) for its necessary notification and implementation, said the industry sources.GIPSA has also come out with the new salary structure for various categories of employees after post the wage revision.
It is now over two months ministry of finance had decided to finalise a 12 per cent wage hike for PSU GI industry after rejecting the demands of unions for a pay parity with Life insurance Corporation(LIC) and ECGC.
However, as employees are eager to receive their overdue revised salaries, industry observers have now raised questions about the ability of the three loss making companies (Oriental Insurance Company, United Insurance Company, and National Insurance Company) to bear the burden of higher salaries and arrears of their employees unless the government infuses more funds into these companies.
With the 12 per cent hike along with five years of arrears, wage bill for NIC will be around Rs 2177 crore, Rs 2080 crore for New India Assurance (NIA), Rs 2135 crore for OIC and Rs 1752 crore for UII.
There will be a total outgo of Rs 8146 crore from all four companies for meeting wage revision expenses, said analysts.
Analysts have further pointed out that the industry will see a large scale employees particularly above 50 availing VRS(voluntary Retirement Scheme) after receiving their revised salaries. Some have even put a figure of almost 20 per cent of total employees in the industry may opt for VRS soon.
The government last year had approved a 16 per cent wage revision with arrears for the employees of IPO bound LIC and had even finalised a hike of 15 per cent with arrears for the PSU banking industry in 2020.
All is well that ends well
Fantastic gains for people who don’t earn profits and yet loot govt ghazni Mohammed way
The wage revision period, the companies are in profits.
Very poor settlement
Banks already started the new wage negotiations now
Thanku Madam pradeep shivram patil
Salary hike of PSU general insurance employees is differing from the hike of LIC & Banking ,that too after heavy delay.This is definitely injustice to GIPSA employees.Had it been settled earlier,definitely it would have been better & employees wouldn’t have lost the interest.
Good Governance depends upon the independence of the Institution which means it should happen without interference of Govt ;particularly for executing various schemes.Govt should respect this .
VERY VERY POOR IT SEEMS MISERY OF BJP GOVT⁹
Noncore benefits and promotion of employees should be stopped in loss making companies. Due to these people, wage revision has not been done till date. Loss making companies should be closed.
Thank you
Employees of the 4 PSU cos.now,should work hard and try to save cos.from prvt.,as govt.want to do so . And this is last wage revision.
आपका आंकलन और सलाह 100% सही है l
Injustic for hard working & dedicted employees
THANQ MADAM
Thank you you madam
Thank you madam.
Good work by the ministry, we are really thankful to F. M. Madam
Any Accidents in Air crash and Railways are settled with Limited liability. But in Road accident settlements are not like that. In Road accidents, settlements are done with Unlimited liability as given by court verdicts..it’s a government policy. That’s only reason, the companies can’t be able to make profit.
Thanks a lot for more belated w r finalisation
Thank you Madam
What a mockery of young employees work in these organisations.Workload has increased manifold but salary are being revised after 5 years delay that too meagre 12%.No interest on arrears by govt but they will deduct 20-30% tax on the arrears receivable.
Huge waste of resources on both sides for these negotiations and settlement which include numerous protests by trade unions and employees for many years.
Employees especially young are demoralised due to such insensitive handling of issues.
No thanks it is our rights
The union government has betrayed the PSU GI employees, who are working for the betterment of the nation. Said period (2017-22) all companies made huge profits and share was given to union government.
First time in the history of nationalised financial sector, a disparity of wage settlement has been introduced. While Banks and LIC wage settlements are over and above 15%, Gen Ins employees are given with 12% only that too with so many conditions.
Underwriting policies of these companies are very poor
Those who strived to keep PS GICs afloat met with Injustice (12 %) WHEREAS others got the bounty unjustifiably.
Rs.8146 Crores to be infused by GOI.
TO enrich a Sub-staff from Rs. 70,000/ pm salary to Rs. 85,000/ and a General Manager from Rs. 2 lakhs to Rs. 2.5 lakhs pm as salary with same output.
Whereas, Pensioners, the Senior Citizens, remain as poor as they were in 1995. Ghastly inhuman treatment. Basic Pension, never revised from 1995. As per record, Mr. G. S. Dhanwade, 95 years, (d.o.b. 15.08.1927) retd. from NICL with a fixed Basic Pension of Rs 690/ is being paid Rs. 9067/ pm as gross pension today. List of pensioners in the age group from 85 onwards is in hundreds only. Number is reducing. Rarely anyone is able to listen or speak on phone. How many of us will prefer to reach such stage without Revision in Pension (which Hon’ble Courts have ruled as right)?
I don’t understand some people thanking FM. It is employees legitimate right. She is not giving from her pocket. Because of many social service schemes we incurred losses. Corona Kavach policy is the best example for it.
Correct
A shameful settlement after a huge delay. PSU makes loss due to poor management at DFS and their faulty compulsions deliberate to benefit private companies and without much thought and insights. We make profit and pay dividends but some useless IAS thinks otherwise and orders closure of profitable units leading to loss of profitable premiums and increased ICR. No business is not a solution to contain ICR and increase profitability, adoption of new technologies is -which btw ministry keeps delaying for PSUs.
congratulation to both sides. For the present something is better than nothing. I am sure, GI Officials will legitimately earn their pay hike, which will not be less than 30%, and because of satisfactory performance, GoI will gladly agree for 35% hike. Pay hike from 1.8.2022 is already due and before 2024 LS Elections, the next settlement will take place. Wishing the General Insurance Officials the best of luck sooner.
Whilst on this, I appeal to in-service GI Officials to support the case of SVRS-2004 Retirees’ case for settlement of their retiral dues based on Pay Scales of 1.8.2002 (as against 1.8.1997 thrust on them) and remove the anomaly in their Pension, Pension Commutation, Gratuity, Arrears from 1.8.2002 to 30.4.2004, and Leave Encashment. Hope, all Unions/Associations would support this outstanding demand of SVRS 2004 Retirees, who were their members and issues relate to their Retirement Dues and not post retirement.