Mumbai, Apr 15:

The government, on Thursday, on the pattern of PSU banking industry, has approved 15 per cent of wage hike along with a 5-day week for around 1 lakh employees of state owned Life Insurance Corporation(LIC).

The new wage hike that has 100 per cent neutralisation of dearness allowances(DA) paid to the LIC employees, has been notified by the government on Thursday. 

The wage revision for LIC employees is due from August 1, 2017 and will be valid for for five years.

Besides, all class 1 employees will be paid special allownces ranging from  Rs 650 to Rs 5200 after they clear different courses conducted by Insurance Institue of India(III). But an officer can avail these allowances provided he clears some of these examinations after getting promoted to Class 1 and not before that.   

After the hike, an entry level officer of LIC- Assistant Administrative officer(AAO)-  will draw a basic salary of Rs  53,600 while a development officer will get Rs 35,650 as basic slary.

The senior most officer in LIC- zonal manager- will receive a salary of Rs 1,63.755. 

The salaries of chairman and  managing director of the corporation are decided by the  central government as they cease to be employees of LIC after becoming chairman and managing director. 

The various unions of LIC had demanded a hike of 25 per cent while LIC management had offered a hike of 16 per cent.

However, the unions have expressed their satisfaction over the quantum of  hike approved by the government.

Now, only the wage negotiation of employees of the PSU general insurnace, numbering around 80,000 sector is pending and will be settled on the pattern of LIC employees and banking industry.