LIC Shares Dip Over 2% Amid Plans for 17% Employee Wage Hike

19 Mar 2024 , 12:33 PM

LIC shares dipped over 2% amid plans to raise wages by around 17% for its 1.1 lakh employees. LIC received government approval on March 15 for a wage revision effective from August 1, 2022, benefiting over 110,000 employees.

The wage hike could increase LIC’s annual wage bill to over ₹29,000 Crore, with an estimated annual implication of around ₹4,000 Crore.

Including arrears of ₹7,000 Crore for this fiscal year, the total wages paid out for FY24 could reach ₹32,000 Crore.

The National Pension System (NPS) contribution was raised from 10% to 14% for nearly 24,000 employees joining LIC after April 1, 2010.

Additionally, a one-time ex-gratia payment was disbursed to over 30,000 LIC pensioners and family pensioners.

CNBC-TV18 reported that over 1 lakh LIC employees may see a 16% increase in their base pay, potentially reaching up to 22% with allowances starting August 2022. At the time of writing, LIC shares were trading at ₹884.75 on the NSE, down by 2.17%.

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