Govt approves 13.5% wage hike for LIC employees

New Delhi, Aug 4 | Updated: Aug 5 2005, 05:30am hrs
The government has decided on a 13.5% wage hike for Life Insurance Corporation (LIC) employees. However, it is yet to notify the increase. A senior government official said that the final decision on the quantum of wage hike for employees in the public sector general insurance companies would also be taken in the next few weeks.

The additional outflow for insurance companies would be about Rs 75-100 crore after the salaries are revised.

Wage revision in the sector is due since 2002. Trade unions said promotions were also due. We will take up the issue with the government, a member of a trade union said.

The unions added that employees of general insurance companies would reject any offer regarding salary hike if it was not in line with LIC. The government had earlier proposed a lower quantum.

Increase yet to be notified
No decision on quantum of hike for general insurance employees
Additional outgo for insurance companies would be about Rs 75 crore-100 crore after salaries are revised
Wage revision was due since 2002
Meanwhile, trade unions have also urged the government to merge the four general insurance companies to strengthen and expand their market. But the government has ruled it out in the near future.

In fact the Ferguson report on the sector, made no mention of any merger, despite the unions demand.

The report further stressed that the productivity of employees must be increased and incentive-based remuneration introduced. The government has already revised the wages of employees of public sector banks.