SBI staff in for more benefits
Life Insurance Corporation (LIC) employees have had to settle for a 17.5 per cent wage increase, in line with what was offered to bank employees under the agreement signed with the Indian Banks’ Association.
This is lower than expectations as the unions had expected the increase to be of the order of 23 per cent. Unlike most public sector banks, LIC employees have not been given a second pension option. This is because most have already exercised the option.
The wage hike, approved by the government of Friday, would be effective from August 2007. The State Bank of India employees, who had protested the 17.5 per cent pay increase on the grounds that they already had the pension option and would therefore lose out, are in for some bonanza. The bank management is awaiting approval from the government to provide for an additional 6.4 per cent increase, which will cost the bank around Rs 290 crore. In addition, there is a proposal before the government for raising the pension for senior officers by around 40 per cent and for clerical and junior management grade employees by around 50 per cent.
A senior executive said the bank had already provided Rs 290 crore for the expected impact of the salary increase. SBI union representatives had not signed the wage settlement agreement with IBA.
An LIC employees union functionary, however, said the wage increase was on expected lines.
LIC Managing Director A K Dasgupta said, “We are one of the lowest-paying companies in the industry and our cost ratio is the lowest at 4-4.5 per cent. The increase will not add to our cost. It is similar to what banks have got. Last year, our total salary bill was Rs 3,500-Rs 3,600 crore.”
