The revision incorporates an enhancement in National Pension System( NPS) contribution from 10% to 14% for a better future of nearly 24,000 employees, who had joined after Apr, 2010
Mumbai:
After banking, the government has approved a 17 per cent hike in the wages of LIC employees with effect from Aug, 2022. The move will benefit more than 1,10,000 employees.
The corporation undertakes wage revision exercise for its employees once in every five years.
The revision incorporates an enhancement in National Pension System( NPS) contribution from 10% to 14% for a better future of nearly 24,000 employees, who had joined after Apr, 2010.
The revision includes a one-time ex-gratia payment to LIC pensioners as a gesture of appreciation of their valuable contribution to the organization. This will benefit more than 30,000 pensioners and family pensioners.
The government had earlier enhanced quantum of family pension which had benefited more than 21,000 family pensioners.
Earlier, Indian Banks’ Association and bank employee unions agreed on an annual wage hike of 17 per cent, a move that will result in an additional yearly outgo of around Rs 8,284 crore for public sector banks.
As many as 8 lakh bank employees are set to benefit from the wage hike, which will be effective from November 2022.
After PSU banking sector and Life Insurance Corporation(LIC), it is now time for the wage revision of 50,000 employees, who are working in PSU General Insurance industry.
However, there is a big question mark over the new wage negotiation exercise for the PSU general insurance industry, as the next revision due from August 2022 will be in the form of a variable pay based on the performance of the company and the employees,
Going by the new conditions, the companies, which are in losses for the period (for which the negotiations happen), will not be eligible for wage hike of their employees.
During the last wage negotiation, much to to the chagrin of the employees’ unions. the Finance Ministry had notified an average 12 per cent wage hike for employees of four public sector general insurance companies effective from August 2017.
Unions of the PSU general insurance industry were not happy with imposition of pay linked to performance of the company and their performance.