The employee unions of Life Insurance Corporation of India (LIC) on Friday rejected the company’s 14 per cent salary hike offer, saying it does not reflect the dedication and commitment of workers towards the institution.
The state-owned life insurer had offered to give its employees a raise of 14 per cent in a meeting convened with All India National Life Insurance Employees Federation and other unions in LIC.
According to a press note by the unions, “All the unions in LIC have refused the 14 per cent offer of LIC Management as this offer does not reflect the dedication and commitment of LIC employees towards the institution.”
Rajesh Nimbalkar, the General Secretary of All India National Life Insurance Employees Federation, noted that the offer made by the management has “disappointed employees”, considering the performance of the public sector insurer across several parameters.
In the third quarter of the current financial year (FY24), LIC recorded 49 per cent year on year (Y-o-Y) growth in net profit to Rs 9,444.42 crore from Rs 6334.19 crore. The key profitability margin of the insurance company, Value of New Business (VNB) margin, stood at 20.01 per cent in the quarter as compared to 14.62 per cent in Q3FY23.
In the quarter under review, the employees’ remuneration and welfare expenses of the corporation rose by nearly 71 per cent to Rs 9,543.68 crore from Rs 5,579.55 crore in Q3.
LIC has a five-year wage revision policy. The last raise was given to the employees in 2017 and the next revision was due in 2022.
“In 2017 wage revision, the company had given a hike of nearly 20-25 per cent, and this time also we are expecting around 22 per cent hike,” Nimbalkar said.
The next meeting between the employee unions and LIC is expected to be in Mumbai. However, the date is yet to be decided.
