Govt approves 16% hike in wages for LIC employees: Report
Life Insurance Corporation of India (LIC), starting from August 2022, which means that LIC employees will receive arrears for the past two years, according to a report by CNBC-TV18. With the allowances included, the overall raise could go up to 22 per cent, the report added. The development comes as a relief to more than 1 lakh employees and 30,000 pensioners associated with LIC.
This hike is set to have a substantial financial impact, with an estimated annual implication of over ₹4,000 crore for LIC. After the hike, LIC's wage bill is expected to rise to more than ₹29,000 crore. Also Read: LIC Q3 profit up 49% at ₹9,444 cr, net premium income grows 4.6% The approval of the wage hike will also benefit 30,000 pensioners of the insurance firm.
The annual implication of wage hike for LIC is being seen at ₹4,000 crore, according to the report. Earlier this month, the government had hiked the dearness allowance (DA) to 50 percent of basic pay from the current rate of 46 per cent effective from January 1 this year, benefitting over a crore employees and pensioners ahead of the Lok Sabha elections 2024. LIC saw a 49 per cent year-on-year increase in net profit during the December quarter of FY2024, reaching ₹9,444.4 crore compared to ₹6,334.2 crore last year same period.
The improved performance was mainly driven by an increase in net income from investments and growth in net premium income. India’s largest insurer’s net premium income grew by 4.6 per cent in the quarter-under-review. LIC's net income from investments during the December quarter rose by 12 per cent year-on-year to ₹95,266.8 crore from ₹84,869 crore in Q3FY2023, while management expenses increased by 32 per cent year-on-year to ₹18,193.8 crore.
Read more on livemint.com
