LIC Employees’ Union Rejects 14% Wage Hike Offer; Demands at least 25%

New Delhi: The employees’ union of public sector insurance major, LIC, has rejected the government’s offer of a 14% wage hike. The employees, whose wage revision is due since 2017 under a five-year pact, had been demanding at least a 25% hike.

At a meeting held on Friday in Mumbai, convened with All India National Life Insurance Employees Federation (AINLIEF) and other unions in LIC, the offer was made by the government, which was rejected by the union, saying it did not reflect the “dedication and commitment” of workers, said a report in the Business Standard.

In a press statement, Rajesh Nimbalkar, general secretary, AINLIEF, said that the offer made by the management had “disappointed employees”, considering the performance of the public sector insurer across several parameters.

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%, and this time also we are expecting around 22% hike," Nimbalkar said in the statement.

The public sector insurer, according to the BS, report, has recorded 49% net profit year-on-year in the third quarter of the current financial year – 2023-24 – as Rs 9,444.42 crore from Rs 6,334.29 crore in the previous year.

Its net premium income also improved to Rs 1,17,017 crore in the third quarter of the current fiscal from Rs 1,11,788 crore in the same period a year ago.

LIC's total income also rose to Rs 2,12,447 crore in the latest December quarter compared with Rs 1,96,891 crore in the year-ago period.

On February 16, the LIC announced that it had got a tax refund of Rs 21,740. 77 crore from the income-tax department for the assessment years from 2013 to 2020.

In August 2023, the AINLIEF had written to the Finance Minister Nirmala Sitharaman reminding her of the wage revision due since 2022and had seeking her intervention in the matter.