“Yes, we have now got instruction from the government to clear the arrears of our employees at one shot on 10th November with or without any financial supports from it. If the government is not giving any additional funds, we will have our own internal source of funds including dipping into our investments to clear the arrears,” said an official of a PSU general insurance company
There will be a total outgo of Rs 8146 crore from all four companies excluding GIC Re for clearing the five-year wage arrears
New Delhi:
Ending the suspense, the government has asked PSU general insurance companies to clear the full arrears of five years, since August 2017, accrued out the latest wage revision, of their 44,000 employees on 10th November with or without getting any funding support from it.
Earlier, the government without the consent of the unions had gone ahead to conclude the wage revision negotiation and notified 12 per cent wage hike on 15th September.
“Yes , we have now got instruction from the government to clear the arrears of our employees at one shot on 10th November with or without any financial supports from it. If the government is not giving any additional funds, which is most likely, we will have our own internal source of funds including dipping into our investments to clear the arrears,” said an official of a PSU general insurance company.
Out of five companies, GIC Re, New India Assurance, Oriental Insurance Company, United India Insurance, and National Insurance Company, the first two companies will not require any additional support from the government but other three companies will be requiring it for meeting the additional expenses on account of arears.
GIC Re board has already approved the proposal earlier for the payment of the arrears.
There will be a total outgo of Rs 8146 crore from all four companies excluding GIC Re for clearing the arrears.
With the 12 per cent hike along with five years of arrears, wage bill for NIC will be around Rs 2,177 crore, Rs 2080 crore for New India Assurance (NIA), Rs 2135 crore for Oriental Insurance Company (OIC) and Rs 1752 crore for United India Insurance(UII).
The government has also now made it a rule that the next revision for the industry starting from August, 2022 will be in the form of a variable pay based on the performance of the company and the employee.