Officers of the Life Insurance Corporation of India (LIC) have got a better wage settlement deal than their counterparts in state-owned banks, according to an analysis by the All India Bank Officers’ Association.

The association said the starting pay of the lowest-grade officer in LIC (in which the government owns 96.50 per cent stake) is ₹40,155 more per month than that of a public sector bank (PSB) peer.

The entry-level salary in LIC is ₹88,635 per month vs ₹48,480 in a PSB. In the top-management grade, an LIC officer draws ₹3,37,945 per month while his PSB peer draws ₹1,73,860.

“The wage revision is not an act of benevolence. It is a legitimate demand of the workforce to share in the wealth and prosperity created by the workforce in the industry,” said S Nagarajan, General Secretary, AIBOA.

The latest wage revision for the LIC and PSB workforce is with effect from August 1, 2022, and November 1, 2022, respectively.

The wage revision for LIC employees, which was approved by the government, will step up the life insurer’s annual wage bill by 17 per cent.

Bank unions, too, had agreed to a 17 per cent increase in salary under the 12th industry-wide bipartite wage settlement.

“For the LIC workforce, in the last wage revision (with effect from August 1, 2017) itself, the dearness allowance (DA) per four points raise was 0.08 per cent, meaning that the compensation against the price rise was 108.10 per cent, whereas in the banking Industry it was 100 per cent,” Nagarajan said.

Additionally, LIC workers have been granted a five-day work week with effect from August 1, 2021, he added.

He stressed the need for parity in the DA compensatory system for LIC and PSB officers.

“Though we may have a solace that without resorting to any actions, we have secured financial benefit (wage revision) in the shortest span of time, the LTC monetisation available to SBI officers and five-day week are main demands, which are hanging in suspense.

“We will pursue the demands... through sustained action programmes by all officers,” Nagarajan said.