New Delhi, April 16: The Centre has reportedly approved a 16 percent wage hike for Life Insurance Corporation of India (LIC) employees, reported Business Standard. Over one lakh LIC employees will be benefitted from the move. The Department of Financial Services (DFS) of the Finance Ministry also reported approved five-day working for the LIC staff.

The LIC employees will now get Saturday offs.  The wage revision is effective from August 1, 2017. Shreekant Mishra, General Secretary, All India Insurance Employees Association (AIIEA) told IANS that loading of 15 percent had been given after 100 percent neutralization of dearness allowance (DA) at 6,352 points of a consumer price index (CPI). LIC Strike: Employees Observe Nationwide Strike Against Proposed IPO, Increase in FDI Limit And Privatisation.

An additional Special Allowance ranging between Rs.1,500 to Rs.13,500 per month has been introduced for all cadres, which shall be reckoned for the purpose of calculation of dearness allowance (DA) but will not count for any other purpose i.e. house rent allowance, city compensatory allowance, privilege leave encashment, gratuity, superannuation benefit and others. Union Budget 2021: Govt Proposes to Increase FDI Cap in Insurance Sector to 74%.

The AIIEA had submitted a charter demanding a 40 percent wage hike. In the last wage agreement, the hike given was 25 percent on average. Mishra said the unions' next focus is to conclude wage revision for the employees of the government companies in the general insurance sector.

Finance Minister Nirmala Sitharaman, in her Budget 2021 speech, proposed to amend the Insurance Act 1938 to "increase the permissible FDI limit from 49 percent to 74 percent in insurance companies and allow foreign ownership and control with safeguards". Last month, Parliament approved a Bill to increase Foreign Direct Investment (FDI) limit in the insurance sector from 49 percent to 74 percent, with the Lok Sabha passing the proposed law by a voice vote. The bill in the Rajya Sabha had already been passed in early march.

(With inputs from IANS)

(The above story first appeared on LatestLY on Apr 16, 2021 02:56 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).