Saturday, October 16, 2010

LIC/GIC Pay Hike : PSU insurance staffers get 18% pay hike : Economic Times

There’s festive cheer for about two lakh employees of the public sector insurance companies with the finance ministry approving a 17-18 % salary increase. 

“We have approved the wage revision,” said a finance ministry official and added that it is similar to the one approved recently for public sector banks.
 

The wage revision comes close on the heels of the central government employees getting a 10% rise in dearness allowance , and is sure to give some boost to the already robust consumer durable sales. 

The wage increase would be effective from August, 2007, which means that employees would also be receiving substantial arrears just ahead of the festival season . Employee unions have given a thumbs up to the revision agreement notified on October 13. 

“I think it is a fair amount as we've expected,” said A K Singhal, chairman, General Insurance Public Sector Association . But, the wage revision is not likely to substantially impact the bottom lines of insurance companies as they had been provisioning for the increase from 2007. 

“We have already provided for it,” said M Ramadoss, chairman and managing director, New India Assurance. The new wage scheme worked out between the unions and the government also provides for a revision in the dearness allowance every time there is a four point rise in the quarterly average of the all India consumer price index. 

There has also been a substantial increase in the allowances including house rent allowance in all categories. “The wage revision is in sync with what was given to the employees of Life Insurance Corporation and public sector banks, Mr Singhal said. 

Similar views were echoed by R K Kaul, CMD Oriental Insurance who said that the wage revision would further motivate employees. However, some unions are not celebrating yet and will wait they see the notification in black and white. "We need one more pension scheme as it exist in banks. 

We are awaiting for the administrative information on the pay revision and will then chart out a plan," said CA Baskaran , President, United India Insurance Officers Association .
Source : Economic Times.
at

1 comment :

nats said...

Its a PITY that once considered as most ATTRACTIVE PROFESSIONS were given less increase (17.5- PSB 18 - LIC/GIC) whereas there counter parts in Central Govt. / PSUs have almost 40% INCREASE. IN PSBs THERE IS LITTLE MURMUR WHERE AS FEED BACK IN LIC (NON-OFFICERS) IS VERY HAPPY (TERMED HISTORIC). REASONS :- Main issue in PSBs is not WAGE REVISION but ONEMORE OPTION FOR PENSION whereas in LIC it is MOBILITY (NON-OFFICERS). In this context it may be WONDERFUL COINCIDENCE that LIC may be ONLY TRANSNATIONAL GOVT. ORGANISATION WHERE EMPLOYEES (NON-OFFICER) CAN JOIN IN A PLACE AND RETIRE FROM THE SAME SEAT. THEN THERE SHOULD NOT BE ANY UNHAPPINESS AS IN BANKS WHERE ATLEAST EMPOYEES ARE GIVEN TRANSFERS. WHO IS THE SCAPE GOAT IN BOTH THE PLACES? FOR ANS. LOOK IN TO THE RECENT COMMENTS OF RBI GOVERNOR WHERE IN HE HAS WORRIED ABOUT THE DISPARITY IN THE WAGE STURCTURE OF OFFICERS PARTICULARLY THOSE IN THE TOP! THANK U RBI GOVERNOR -(Those in the higher echelons in PSBs and Insurance were searching for a TU Leader)

October 17, 2010 at 1:28 PM

Post a Comment

Subscribe to: Post Comments ( Atom )
All the information published in this webpage is submitted by users or free to download on the internet. I make no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this page and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. All the other pages you visit through the hyper links may have different privacy policies. If anybody feels that his/her data has been illegally put in this webpage, or if you are the rightful owner of any material and want it removed please email me at "shyamali00@gmail.com" and I will remove it immediately on demand. All the other standard disclaimers also apply.

Blog Archive