LIC: According to reports, the government has approved a substantial 16% increase in base pay for workers of Life Insurance Corporation of India (LIC), effective August 2022. This implies that arrears for the previous two years will be paid to LIC employees.
Projected Financial Impact
With a projected yearly financial impact of more than 4,000 crores, this raise is expected to have a significant effect on LIC. It is anticipated that LIC’s yearly wage expense will increase to much beyond ₹29,000 crore if the increments are implemented. However, the financial impact on the company in the current fiscal year, including arrears, will be greater at ₹7,000 crore, bringing the total salary cost for FY24 to ₹32,000 crore.
Enhanced Financial Security
Additionally, according to sources, LIC employees’ total salary increases could reach 22% when allowances are taken into account. With this permission, LIC’s employees and retirees will have increased financial security, and the company will solidify its standing as a pillar of stability in India’s financial system.