
The Centre has approved a 17% hike for LIC staff in basic, a move that will benefit nearly 1 lakh employees and about 30,000 pensioners.
Effective from August 2002, the hike will cost Rs 4,000 crore a year to the company.
"The revision incorporates an enhancement in NPS contribution from 10% to 14% for a better future of nearly 24,000 employees who had joined after 01/04/2010. 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," the insurer said in a statement.
"This holistic revision shall have a positive impact on past and present generation of LICians and also make LIC a more attractive employment proposition to the future generation. LIC is thankful to the Government of India for this wage revision which will benefit all LICians and their families across the country," the statement adde.
The hike comes after the government's recent 50 per cent hike in Dearness Allowance. This means that employees under the central government will see a 4 per cent increase in their dearness allowance, as per the recent announcement.