PSU Salary Hike: Central Govt announces to raise 12% salary of employees of four General Insurance companies

The four General Insurance companies, whose employees and officers salaries increased by 12%, are New India Insurance ltd, United India Insurance ltd, the Oriental Insurance company ltd, and National Insurance company ltd. It will burden Rs 8000 crore on Central Government exchequer.

New Delhi: Central Government gave diwali gift to employees and officers of four General Insurance companies in Public sector. Finance Minister announced to hike 12% salary of employees working in these companies, which would be effective retrospectively from August 1, 2017. The employees of these companies will get consolidated arrear of 5 years. Central financial Minister released a circular regarding it.

These companies are included

Central government has increased the salary of employees and officers in four companies. They are New India Insurance ltd, United India Insurance ltd,  the Oriental Insurance company ltd, and National Insurance company ltd. It will burden Rs 8000 crore on central government exchequer.

Information regarding this has been given in the gazetted notification issued by the Ministry of Finance on October 14. The scheme has been named General Insurance (Rationalization of Pay Scales and Other Conditions of Services of Officers) Amendment Scheme 2022.

Five year Arrear

According to the government circular, the increment in salary has become effective from August 1, 2017. Employees and officers of these companies during this period will get 5 year arrear soon.

Increment will depend on Performance

Increment of salary will depend on the company’s and employee’s performance. It will be given in variable pay. Employee Unions are angry over the decision to link the increment with the company’s performance. It’s illogical to link wage with the company’s performance, they argued.

Retired Employees will get benefit

Wage revision is done every five years. This time the wage revision of the employees of these four general insurance companies has been done, which is five years late. His next wage revision is also due in August 2022. However, the benefit of this wage revision will also be available to the retired employees, who were in the service of these companies at that time.