The finance ministry has notified a wage revision for LIC employees, which will benefit 1.1 lakh staff.

With a hefty 17 per cent annual increase, effective from August 1, 2022, the move will pump an extra ₹4,000 crore into LIC’s annual wage bill, tallying it up to ₹29,000 crore.

As the notification has come in the midst of the 2024 general elections, officials said the Department of Financial Services had secured the Election Commission’s approval for this so that the move does not violate the model code of conduct.

This wage adjustment aligns with the recent 17 per cent surge awarded to over 8.5 lakh bank employees, signaling a trend in the financial sector.

LIC undertakes a wage revision exercise once in every five years. In March this year, the Centre had decided to make this 17 per cent wage increase for LIC employees. The notification said that it would come into effect from August 1, 2022. The last raise to LIC employees was given in 2017.

The contribution to the National Pension System (NPS) has been raised from 10 per cent to 14 per cent for nearly 24,000 employees who joined LIC after April 1, 2010.

A one-time ex-gratia payment to LIC pensioners also forms part of the revision. This will benefit more than 30,000 pensioners and family pensioners.