The employees of public sector general insurance companies and Life Insurance Corporation (LIC) are set to get a 17.5 per cent wage hike with the government nod to this effect likely in September.
"The four public sector insurance companies have submitted the report to the finance ministry on August 17 asking for a 17.5 per cent across the board wage hike. The ministry approval is expected by September end," General Insurance Public Sector Association (GIPSA) CEO A K Singhal told PTI.
GIPSA is an association of all four public sector general insurance companies -- National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company.
The hike would be made available with retrospective effect from 2007, he said.
Sources said the employee union of country's largest life insurer LIC has also submitted its recommendation along with GIPSA member companies to the finance ministry.
"LIC has submitted its recommendation to the government last week. The ministry would look into the report and a reply is expected in 4-6 weeks," a source in the know of the development said.
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Post the finance ministry approval, the report would be tabled in Parliament, which is expected to happen in the forthcoming winter session.
The last time the PSU insurers got a wage hike was effective 2002. At that time the hike was around 13 per cent.
LIC and public sector general insurance companies, in consultation with various employee unions, submit a detailed proposal for a wage revision to the Centre every five years.