According to the rules of this wage hike, the next revision, which is due from August, 2022 will be in the form of variable pay and based on the performance of the company and the employee.
In an effort to provide more benefits, the Finance Ministry has notified an average 12 per cent wage hike for employees of public sector general insurance companies. While the wage revision will apply to four of these companies, it is effective from August 1, 2017 and applicable to all those who were in service. Adding to the cheer, the ministry also added that officers and employees will also get arrears for five years.
The official notification on this wage hike reads, “This Scheme may be called the General Insurance (Rationalisation of Pay Scales and other Conditions of Service of Officers) Amendment Scheme, 2022.”
According to the rules of this wage hike, the next revision, which is due from August, 2022 will be in the form of variable pay and based on the performance of the company and the employee. However, several unions are reportedly not very happy with the imposition of a pay that is linked to the performance of the company and their performance.
As per a PTI report, General Insurance Employees' All India Association (GIEAIA) General Secretary Trilok Singh said, "We are having strong reservations against the way the wage revision has been done after the wait of 64 months. Linking wages with performance seems to be illogical as we employees undertake so many government schemes.”
The PTI report also added that last year, the government notified the General Insurance Business (Nationalisation) Amendment Act which will allow the government to cut its stake in state-owned general insurers to below 51 per cent. An official source also told PTI that with 12 per cent hike and five years of arrears, the wage bill for New India Assurance, National Insurance, Oriental Insurance and United India Insurance, would be around Rs 8,000 crore.