The management of Life Insurance Corporation (LIC) of India has decided to implement the much-awaited wage revision, bringing cheer to its over one lakh employees.

The wage revision will see a 16 per cent increase in the gross pay and will be implemented from August 1, 2017, said sources close to the development.

MR Kumar, Chairman, LIC, had on Thursday evening conveyed the implementation of the wage revision to union leaders in an information-sharing session through video conferencing, they added. The latest wage revision was due from August 1, 2017. The wage revision is usually implemented for a five-year period.

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The Finance Ministry, which had already given an in-principle nod for the proposal sent by LIC management, has notified the wage revision, sources added. It maybe recalled that LIC management had earlier made a wave revision offer of 16 per cent. While making this offer of 16 per cent, the management had also announced a 100 basis point cut in rate of interest on housing loans availed by various cadre of employees

This wage revision of 16 per cent is getting implemented in a year when the insurance behemoth is slated to hit the capital markets with the country’s largest ever initial public offering. The centre is hoping to mop up at least ₹1-lakh crore from LIC through the initial public offering. The Centre may divest up to 10 per cent stake in the insurance behemoth for this purpose.

Public holiday

In another development, the Department of Financial Services (DFS) in the Finance Ministry has announced that every Saturday will be a public holiday for LIC.