Instructions for implementation of the Life Insurance Corporation of India Class-III & Class-IV Employees (Revision Terms and Conditions of service) Amendment Rules, 2016

Instructions for implementation of the Life Insurance Corporation of India Class-III & Class-IV Employees (Revision Terms and Conditions of service) Amendment Rules, 2016

LIFE INSURANCE CORPORATION OF INDIA
CENTRAL OFFICE, MUMBAI

Department: Personnel/ER
Circular No. : Per/ER-A/111/ASP/2016

‘Yogakshema’ Jeevan Bima Marg
Mumbai-400 021.
15th January, 2016.

TO ALL OFFICES OF THE CORPORATION:

Re: Instructions for implementation of the Life Insurance Corporation of India Class-III & Class-IV Employees (Revision Terms and Conditions of service) Amendment Rules, 2016. 

Whereas the scales of pay, dearness allowance and other service conditions applicable to Class-III and Class-IV Employees of the Corporation have been revised by the

1. Life Insurance Corporation of India Class-III and Class-IV Employees (Revision of Terms and Conditions of Service) Amendment Rules, 2016 (hereinafter referred to as the `Amended Revision Rules’),

2. Life  Insurance  Corporation  of  India  Class-III  Employees  (Special  Allowance  for  Passing Examinations) Amendment Rules, 2016,

3. Life Insurance Corporation of India (Special Area Allowance) Amendment Rules, 2016.

[Copies of the said Rules are appended as  Appendix-I(A to C). ]

The Chairman in exercise of the powers conferred on him by sub-rule(2) of Rule 51 read with Rule 4 of the Life Insurance Corporation of India (Staff) Rules, 1960, has issued the following instructions providing for the method of fixation in the new scales of pay and other matters connected therewith or incidental thereto.

1. SHORT TITLE:

These instructions shall be called the Life Insurance Corporation of India Class-III and Class- IV Employees (Revision of Terms and Conditions of Service) Instructions, 2016.

2. DEFINITIONS:

a) “Date of Notification” means   01.2016.

b) “Existing   employee”   means   a   whole   time   salaried   employee   in   the   permanent establishment of the Corporation who was in the service on the date of notification.

c) “Existing Scales” or “pre-revised scales” means the scales which were applicable to the employees immediately before they were governed by the Amended Revision Rules.

d) “New Scales” or “revised scales” means the scales as revised by the Amended Revision Rules.

e) “Option under the Revision Rules” means the option referred to in sub-rule (2), of Rule 1 of the Amended Revision Rules to be governed by the provisions of the Revision Rules from a date not earlier than the date on which the said Rules come into force.

3. ELIGIBILITY:

(1) These instructions shall apply to the Class-III and Class-IV employees who were in the whole time salaried service in the permanent establishment of the Corporation as on 1.8.2012 and those who have joined the whole time salaried service in the permanent establishment of the Corporation after that date.

Provided, however, that those employees whose resignation had been accepted on or before the date of notification irrespective of whether they are relieved or not or whose services had been terminated under Rule 39 of Life Insurance Corporation of India (Staff) Rules, 1960, during the period between 1.8.2012 and 14.01.2016 (both days inclusive) shall not be eligible for the arrears on account of this revision.

(2) For removal of doubt, it is clarified that these instructions shall  not apply to –

i) temporary employees

ii) employees engaged on daily wages.

iii)  badli workers.

iv) part-time employees.

v) work charged employees and

vi) employees who have been appointed on an ad-hoc basis and to whom the provisions of the Life Insurance Corporation of India(Staff) Rules, 1960 do not apply including CBSE Apprentices, Actuarial Apprentices, etc.

vii)    employees whose services have been terminated under Rule 39 of the Life Insurance Corporation of India (Staff) Rules, 1960 on or before the date of notification.

4. METHOD OF FIXATION:

(1) (a)  For the limited period from 1.8.2012 to the date of notification :-  Fitment in the new scales of pay set forth in the Amended Revision Rules shall be done w.e.f. 1.8.2012 with reference to the basic pay as on 1.8.2012 in the corresponding existing scale or as on the date of appointment, if later, as per the enclosed Fitment Chart (Appendix-II).  Subsequently as and when there is a change in the pre-revised basic pay due to release of NGI, Stagnation Increment, Fitment on promotion etc., the fitment chart will have to be referred to and the revised basic pay shall be fitted corresponding to the pre-revised basic pay at every stage where change in the basic pay has occurred in the pre-revised scale.

(b)  After the date of notification :-

There may be no need to refer to pre-revised scales.  All the changes after the date of notification shall be effected in the revised scales of pay.

(2) In  the  cases  of  those  Ex-Servicemen  who  have  been  re-appointed  in  the  service  of  the Corporation on or after 1st August, 2012 but before the date of notification, the pay fixed in the pre-revised scales need not be reopened. Their basic pay in the revised scales will be fixed in the same manner as is done in the case of other employees recruited by the Corporation.

(3) The Amended Revision Rules, 2016 provide for an option to the employees to be governed by the said rules from any date not earlier than 1.8.2012 and not later than the date of publication of this notification in the official gazette.  The option has to be exercised within the time limit specified by the Corporation.

Accordingly, it has been decided that the employees may be allowed to exercise the option on or before 31.01.2016.  The employees who wish to exercise the option may exercise the same in pro forma prescribed in Appendix-III.

In case of employees who exercise the option, the fitment of their salary in the new scales shall be done from the date so opted.

The employees shall not be eligible for the arrears on account of revision upto the date so chosen.

(4) Fitment on Promotion:

Any employee promoted to any post in Class III or Class IV and fixed in the pre-revised scale of pay applicable to the post to which he was promoted on or after 1.8.2012, may re-exercise the option that was allowed to him under sub-rule (2) of Rule (52) of L.I.C. of India (Staff) Rules, 1960, as regards the date of fixation in the revised scale of pay of the post to which he was promoted. This option shall be exercised on or before 31.01.2016 in the Proforma prescribed in Appendix III-A and his salary so re-fixed in accordance with this option will be final.

5. ADDITION TO BASIC PAY AFTER REACHING MAXIMUM OF THE SCALE OF PAY:

The Rule 7 of the Revision Rules, 1985 provides for the additions to the basic pay after reaching maximum of the scale of pay to Class-III and Class-IV employees.   There is no change in this rule amended earlier on 08.10.2010.

6. DEARNESS ALLOWANCE:

(1) Rule 4 of the Amended Revision Rules substitutes sub-rule(1) of Rule 8 of the Life Insurance Corporation of India Class-III and Class-IV employees (Revision of Terms and Conditions of Service) Rules, 1985.

As a result of the same, the Dearness Allowance to the Class-III and Class-IV employees shall be paid or recovered at the rate of 0.10% of pay for every 4 points increase or fall, as the case may be, in the quarterly average of All India Consumer Price Index above 4708 points.

(2) The `Pay’ for the purpose of calculation of dearness allowance shall include Basic Pay, addition to Basic Pay, Special Allowances payable to Head Peon, Liftmen and Watchmen, Graduation Allowance payable to Assistants and Stenographers, Special Allowance for Passing Examinations payable to Class-III employees under Life Insurance Corporation of India Class-III Employees (Special Allowance for Passing Examinations) Rules, 1988.

(3) The number of slabs for which the dearness allowance becomes payable as per the pre- revised and revised rules has been shown in Appendix-IV.

(4) Additional dearness allowance, wherever drawn, will continue to be paid.

7.  HOUSE RENT ALLOWANCE:

(1) The scales of HRA payable to Class-III and Class-IV employees have been revised as under:

S.No.	Place of posting	Rate of House Rent Allowance
(1)	(2)	(3)
1.	Cities of Mumbai, Kolkata, Chennai, Delhi, Noida, Faridabad, Ghaziabad, Gurgaon, Navi Mumbai, Hyderabad, Bengaluru and other cities with population of 45 lakhs and above.	10% of Pay subject to the minimum of Rs.1165/- p.m. and the maximum of Rs.5320/- p.m.
2.	Cities with population exceeding 12 lakhs, but less than 45 lakhs and except those mentioned at (1) and any city in the State of Goa.	8% of Pay subject to the minimum of Rs.1000/- p.m. and the maximum of Rs.4490/- p.m.
3.	Other places.	7% of Pay subject to the minimum of Rs.950/- p.m. and the maximum of Rs.4320/- p.m.

The population figures for the above purpose shall be as per the latest Census Report. Further, the cities shall also include their urban agglomeration.

(2)  Pay for the purpose of House Rent Allowance shall include basic pay, additions to basic pay referred to in Rule 7, special allowance referred to in sub-rule(2) (a) of Rule 6, graduation allowance payable to Assistants and Stenographers, special allowance for passing examinations under Life Insurance Corporation of India Class-III Employees (Special Allowance for Passing Examinations) Rules, 1988.

(3) House Rent Allowance is not payable to any employee occupying staff quarters/leased accommodation.    However,  in  the  cases  of  those  employees  who  were  allotted  staff quarters prior to 1.4.1983 the House Rent Allowance which was being paid to them on the day immediately preceding 1.4.1983 shall be paid so long as they are in occupation of the staff quarters.

(4) Employees who are allotted staff quarters/leased accommodation are required to pay such licence fee as may be decided by the Corporation from time to time.  At present it is being deducted at the rate of 1.20% of the minimum of the scale.  The revised rate of deduction shall be 0.75 % of minimum of the scale with effect from 1.2.2016.  Till 31.1.2016, the amount of licence fee which is being deducted at present shall continue to be deducted.

(5) Where the husband and wife are employee(s)/officer(s), whether posted at the same station or not, House Rent Allowance may be paid to both of them as hitherto, if they are not in staff quarters or leased accommodation.

(6) If they are at the same station, they shall be allotted only one staff quarter and the licence fee shall be recovered at the appropriate rate from the employee to whom the staff quarter is allotted but his/her spouse may be paid the House Rent Allowance.

(7) If any employee has been allowed, as a matter of concession, to retain or have any staff quarter at his/her previous place of posting or elsewhere, HRA will not be admissible to him/her and the licence fee payable by him/her in respect of the staff quarter which he/she has been allowed to retain or to have at any other place as a matter of concession shall be determined in accordance with such instructions as may be issued by the Corporation from time to time in this regard.

The charts showing classification of cities have been enclosed as Appendix-V(A) for HRA. The cities shall include their urban agglomerations.

8. CITY COMPENSATORY ALLOWANCE:

The revised Rule 10 lays down the rates of city compensatory allowance which will be payable on the basis of revised pay.   The city compensatory allowance at the revised rates shall be payable w.e.f. 1.8.2012. The rates are as under:-

S.No.	Place of posting	Rate of CCA
(1)	(2)	(3)
i.	Cities of Mumbai, Kolkata, Chennai, Delhi, Noida, Faridabad, Ghaziabad, Gurgaon, Navi Mumbai, Hyderabad, Bengaluru and other cities with population of 45 lakhs and above.	3%  of  Pay  subject  to  the minimum of Rs.345/- p.m. and      the      maximum      of Rs.1055/-p.m.
ii.	Cities with population exceeding 12 lakhs, but less than 45 lakhs and except mentioned at (1) and any city in the State of Goa.	2.5% of Pay subject to the minimum of Rs.285/- p.m. and    the    maximum    of Rs.990/-p.m.
iii.	Cities with population of five lakhs and above but not exceeding twelve lakhs, State Capitals with population not   exceeding   twelve   lakhs,   Chandigarh,   Mohali, Pondicherry, Port Blair and Panchkula.	2%  of  Pay  subject  to  the minimum  of  Rs.     210/- p.m. and the maximum of Rs.850/-p.m.

The population figures for the above purpose shall be as per the latest Census Report.  Further, the cities shall also include their urban agglomeration.

Pay for the purpose of City Compensatory Allowance shall be the basic pay plus addition to basic pay referred to in Rule 7 and Special Allowance payable to Head Peons, Liftmen and Watchmen.

City  Compensatory  Allowance  of  Rs.20/- p.m.  wherever  being  paid  to  any  employee  in accordance with sub-rule(2) of Rule 10 of the 1985 Revision Rules may continue to be paid so long as the employee continues to be posted at that centre.

The charts showing classification of cities have been enclosed as Appendix-V(B) for CCA.

9.  SPECIAL ALLOWANCE, FUNCTIONAL ALLOWANCE AND HILL ALLOWANCE:

(1) Special Allowance:

With effect from 1.8.2012 the rates of Special Allowances in terms of Rule 4 (2) and 6 (2) (a)  payable to Class-III and Class-IV employees, respectively, under the Revision Rules have been revised as under:

1. A) Higher Grade Assistants appointed as Internal Audit/Inspection Assistants

a)	For the first five years	–           Rs.1080/- per month
b)	For the next five years	–           Rs.1230/- per month
c)	For the subsequent years	–           Rs.1330/- per month

B) Assistants appointed as receiving and paying Cashiers -Rs.2500/- per mont

C) Head Peons, Liftmen and Watchmen             –           Rs.985/- per month.

The Special Allowance payable to Head Peons, Liftmen and Watchmen shall count for all the purposes.

(2) Functional Allowance:

Functional Allowance in terms of Rule 4(3) and Rule 6(2)(b) of the Revision Rules, 1985 in respect of the following stand revised as under:

Class-III Employees:

Banda, Duplicating and Xerox Machine                            – Rs.150/- per month

Operators in the scale of Pay of Record

Clerks:

Microprocessor Operators in the scale of                     – Rs. 285/- per month

Assistants

Programmers in the scale of pay of                             – Rs. 900/- per month

Higher Grade Assistants

Provided that functional allowance of Rs.900/- p.m. shall not be payable to those programmers in the scale of pay of Higher Grade Assistants who belong to ITSG as per Rule 9(3) of LIC of India Information Technology Specialist Group (Selection, terms & conditions of service & payment of allowance) Rules, 2007.

Class–IV Employees:

Franking Machine Operators in the scale of Sepoy shall be paid a Functional Allowance of Rs.120/- per month.

These revised rates of Functional Allowance shall come into force from 1.8.2012.

The allowances under Clause 9(1)(A), 9(1)(B) and 9(2) shall not count for the purpose of calculation of Dearness Allowance, Provident fund, Gratuity, House Rent Allowance, Pension, encashment of privilege leave and fixation of salary on promotion.

(3) Hill Allowance:

Rule 11 of the Revision Rules, as amended, lays down the revised rates of hill allowance with effect from 1.8.2012, which are as under:

S.No.	Places	Rates
(1)	(2)	(3)
1.	Posted  at  places  situated  at  a  height  of 1,500  meters  and  over  above  mean  sea level	at  the  rate  of  2.5%  of  Basic  Pay subject to maximum of Rs.615/- per month
2.	Posted  at  places  situated  at  a  height  of 1,000 meters and over but less than 1,500 meters above mean sea level, at Mercara and at places which are specifically declared as ‘Hill Stations’ by Central or State Governments for their employees.	at  the  rate  of  2%  of  Basic  Pay subject to maximum of Rs.485/- per month
3.	Posted at places situated at a height of not less than 750 meters above mean sea level which  are  surrounded  by and  accessible only through hills with height of 1000 meters and over above mean sea level.	at  the  rate  of  2%  of  Basic  Pay subject to maximum of Rs.485/- per month

Pay for the purpose of grant of Hill Allowance shall include basic pay and additions to the basic pay referred to in Rule 7 of the Revision Rules, 1985 and the Special Allowance payable to the Head Peons, Liftmen and Watchmen.

10. PROVIDENT FUND:

Rule 18 of the Revision Rules lays down the rate of provident fund which shall continue to remain at 10% of pay.  Pay for the purpose of provident fund shall include basic pay, additions to basic pay referred to in Rule 7, special allowance referred to in sub-rule (2) (a) of Rule 6, graduation allowance payable to Assistants and Stenographers, special allowance for passing examinations paid under Life Insurance Corporation of India Class III Employees (Payment of Special Allowance for passing Examination) Rules, 1988 and fixed personal allowance.

Provided however that special allowances referred to in sub-rule (2) of Rule 4 of Revision Rules, shall not count for the purpose of calculation of Provident Fund.

For employees who are not governed by the Life Insurance Corporation of India (Employees) Pension Rules, 1995, the difference in the employer’s contribution to provident fund has to be remitted to the provident fund authorities.

For employees who are governed by the Life Insurance Corporation of India (Employees) Pension  Rules,  1995,  the employer’s  contribution  is  to  be  credited to  the  Life  Insurance Corporation of India (Employees) Pension Fund.

As far as additional provident fund is concerned, an employee may be allowed to make or discontinue any additional contribution or vary the rate thereof, subject, however, to the rules of the provident fund or to adjust towards the dues of his regular contribution as a result of revision of scales, any additional contribution made by him from the first day of August, 2012, or from a later date if he is governed by the new scales of pay from a date later than the first day of August, 2012, provided that no part of any contribution already made shall become refundable as a result thereof.

Provided that these rules shall not be applicable to the employees joining the service of the Corporation on or after 01.04.2010 and they shall be governed by the provisions of Defined Contribution Pension Scheme and the rate of contribution remain 10% of Basic Pay plus DA as instructed vide Circular Letter ref:CO/ER/Pen/10-11/L002 dated 08/03/2011.

11. GRATUITY:

There is no change in the rules regarding Gratuity.  However, the employees who have retired or expired on or after 1.8.2012 shall be eligible for the difference on account of gratuity on the basis of revised salary.  It may please be noted that since the amended revision rules are not applicable to the employees who have resigned or whose services have been terminated under Rule 39 of LIC of India (Staff) Rules, 1960, between the period from 1.8.2012 to the date of notification, they shall not be eligible for arrears on account of gratuity.

Provided further that special allowance referred to in sub rule (2) of Rule 4 of Revision Rules shall not count for the purpose of calculation of Gratuity.

12. GRADUATION INCREMENTS AND GRADUATION ALLOWANCE: Graduation Increments:

At present an employee in the scale of Assistant and Stenographer, who is a graduate of the recognised university is eligible for two graduation increments in the scale of pay applicable to him.   If such employee is a graduate at the time of appointment, he is eligible for the said increments from the date of his appointment.  If he becomes graduate after appointment, he is eligible for the said increments on first day of the month following the month in which the result of the examination is declared. There is no change in above instructions.

Graduation Allowance:

The revised rates of Graduation Allowance shall be as under:

RECORD CLERKS  – Rs.535/- per month.

The Graduation Allowance shall be released from the first day of the month following the month in which result of the examination is declared.  Where a graduate Sub-staff is promoted as Record Clerk, he shall draw the Graduation Allowance from the date of fixation of his salary in the scale of Record Clerk.  The Graduation Allowance payable to the Record Clerks shall not count for any purpose.

It may be noted that Record Clerks who become Graduates after 31st July, 2007 shall also be eligible for Graduation Allowance.

EMPLOYEES IN THE SCALE OF PAY OF ASSISTANT AND STENOGRAPHER

(1) An employee who has become a graduate of a recognised      – Rs.1000/- per month

University after reaching maximum of the scale of pay

The Graduation Allowance shall be released from the first day of the month following the month in which result of the examination is declared.

(2) An employee who has received Graduation Increment and reaches maximum of the scale of pay shall be granted Graduation Allowance as under:

a) From the first day of the month following completion     – Rs.510/- per month of one year of service  commencing from the date of reaching such maximum

b) From the first day of the month following completion     – Rs.1000/- per month of two years of  service commencing from the date of reaching such maximum

The Graduation Allowance payable to the employees in the scale of Assistants and Stenographers shall count for the purpose of Dearness Allowance, HRA, Provident Fund, Pension, Gratuity, Encashment of Privilege Leave and Fixation of salary on promotion.

Provided however that all those employees in the scale of Assistant and Stenographer who become Graduates after 31st July, 2007 shall not be eligible for Graduation Allowance.

13. ENCASHMENT OF UNAVAILED PRIVILEGE LEAVE:

It may please be noted that since the Amended Revision Rules are not applicable to the employees whose resignations had been accepted or whose services had been terminated under Rule 39 of LIC of India (Staff) Rules, 1960, between the period from 1.8.2012 to the date of notification, they shall not be eligible for the arrears on account of leave encashment.

Provided further that special allowance referred to in sub rule (2) of Rule 4 of Revision Rules shall not count for the purpose of calculation of encashment of Privilege Leave.

14. FIXED PERSONAL ALLOWANCE :

The revised rates of Fixed Personal Allowance payable under Rule 19D of Amended Revision Rules are shown in Appendix-V.  Other conditions in this regard remain unchanged.  These revised rates shall be effective from 1.8.2012.  It may please be noted that a Class III or Class IV employee who has joined the services of the Corporation after 22.06.2000 shall not be eligible for additional increment for computerization and Fixed Personal Allowance.

15. PARADEEP PORT ALLOWANCE:

Every Class-III and Class-IV employee posted at office(s) in Paradeep shall be paid “Paradeep Port Allowance” at the increased rate of   Rs.185/- p.m. with effect from 01.02.2016, which shall not rank for any purposes as per Rule 19F.  The said allowance shall be paid as long as the employee is posted in Paradeep and shall be discontinued on his transfer to another place.

16. TRANSPORT ALLOWANCE:

Transport Allowance will be payable to every Class III and IV employee at the rate of Rs.460/- per month with effect from 1.8.2012.

17. SPECIAL ALLOWANCE FOR PASSING EXAMINATIONS:

The Life Insurance Corporation of India Class-III Employees (Special Allowance for Passing Examinations) Amendment Rules, 2016, has amended the LIC of India Class-III Employees (Special Allowance for Passing Examination) Rules, 1988 to provide for grant of special allowance at increased rates.  The increased Special Allowances shall be paid w.e.f. 1.8.2012. Other terms and conditions for the release of Special Allowance shall remain unchanged.

18. SPECIAL AREA ALLOWANCE:

The rates of Special Area Allowance remains unaltered. However, the Basic Pay of Rs.13700/- has  been  revised  as  Rs.26000/-  by  the  Central  Govt.  vide  a  separate  notification  dated

14.01.2016   amending the Life Insurance Corporation of India (Special Area Allowance) Rules, 1988. The conditions regarding release of the said allowance shall remain unchanged.

19. OVERTIME:

As per the provision of sub-rule (4) of Rule 1 of the Amended Revision Rules, 2016, no arrears on account of over time payment shall be made for the period from 1.8.2012 to the date of notification. Therefore, cases of over-time payments should not be re-opened.

20. PRODUCTIVITY LINKED LUMPSUM INCENTIVE(PLLI):

(i)         The Class III & IV employees of the Corporation shall be paid Productivity Linked Lumpsum Incentive as per Clause 20 of Circular No.ZD/1161/ASP/2010 dated 11th October, 2010.

(ii)      The instructions regarding the payment of PLLI, if any, for the financial year 2014- 2015 shall be issued separately.

(iii)     For the Financial Year 2015-2016 and subsequent years, once the accounts of the Corporation  are finalized, the  Corporation shall decide about  the  quantum of  the benefit payable, if any, for the said financial year to the employees on or after 1st August of the next year for which separate instructions shall be issued on year to year basis.

21. WASHING ALLOWANCE:

The Washing Allowance payable to Class-IV employees has been increased from Rs.150/- to Rs.250/- per month with effect from 1.8.2012.  Where any employee remains absent and/or avails of leave or does not attend office for whole of the calendar month, no Washing Allowance shall be paid in respect of that month.  The payment of Washing Allowance shall be subject to the employee wearing clean/washed uniform.

22. EMPLOYEES PROMOTED TO CLASS-I AFTER 1.8.2012:

Class-III employees who are promoted and fixed in the scale of pay of Class-I after 1.8.2012 may be paid the arrears up to the date of fixation in Class-I scale.

23. PAYMENT IN LIEU OF BONUS:

There is no change in the rule relating to payment in lieu of bonus.  Payment in lieu of bonus for 2012-13, 2013-14 and 2014-15 has to be recalculated on the basis of revised salary.

Where, as a result of revision, the salary has increased and, therefore, the employee is eligible to receive the higher payment in lieu of bonus for the above period, the difference may be paid as per rules and where the employees salary exceeds Rs.10,000/- per month and as a result of the same the ex-gratia in lieu of bonus needs to be recovered, the same may be recovered from the arrears payable. For the payment of difference / recovery of payment in lieu of Bonus the Circulars issued in the relevant year may be referred to.

24. SUBSISTENCE ALLOWANCE:

There is no change in the rules governing Subsistence Allowance.  However, in view of the revision in the scales of pay and allowances the Subsistence Allowance paid on or after 1.8.2012 may be reviewed and difference, if any, paid.

25. EMPLOYEES WHO HAVE DIED, RETIRED AFTER 1.8.2012:

Employees who have died or retired (retirement includes Voluntary Retirement under Rules 19(2A) of (Staff) Rules, 1960, Rule 31 of LIC of India (Employees) Pension Rules, 1995 and Compulsory Retirement under Rule 19(3) of (Staff) Rules, 1960) after 1.8.2012 may be paid the arrears due on account of revision upto the date of cessation of their service.

26. TEMPORARY, BADLI, ETC. EMPLOYEES:

The revision does not apply to temporary, badli, etc. employees.  However, where salary paid to temporary, badli, etc. employees is equal to the salary at the minimum of the scale of the post in which such appointment is made, the difference may be paid on a request from such temporary/badli employee.

For removal of doubts, it is clarified that while determining the wages to be paid to the temporary employees the graduation increments and transport allowance shall not be taken into account.

27. EMPLOYEES RECRUITED AS DEVELOPMENT OFFICERS:

Class-III employees appointed as Development Officers in Class-II after 1.8.2012 shall be paid arrears upto the date of appointment in Class-II.

28. STRIKES, WALK-OUTS, ETC.:

Suitable recovery on account of strikes, walk-outs, etc. may be made while paying the arrears.

29. MEDICLAIM, GROUP  TERM  INSRURANCE  SCHEME  (GTIS),  1997,     GROUP SAVINGS LINKED INSURANCE SCHEME (GSLI) AND NEW GI POLICY IN LIEU OF GSLI:

As a consequence of the revision of pay scales, the categories of Mediclaim Benefit, Group Term Insurance Scheme (GTIS), Group Savings Linked Insurance Scheme (GSLI) and New GI Policy in lieu of GSLI have been revised as under:

1. a) Group Mediclaim:

Category          Pre-revised Pay                                      Revised Pay

I                        Rs. 30,750/- and above           Rs.58,690/- and above

II                       Rs. 22,146/- to Rs. 30,749/-   Rs.42,196/- to  Rs.58,689/-

III                      Upto Rs. 22,145/-                    Upto Rs. 42,195/-

Effective Date of revised categories: 1.4.2016.

1. b) Group Term Insurance Scheme(GTIS):

Category                                Pre-revised Pay                             Revised Pay

I                        Rs. 50,810/- and above                Rs. 97,150/- and above

II                       Rs. 35,300/- to Rs. 50,809/-     Rs.67,415/- to Rs.97,149/-

III                      Rs. 24,800/- to Rs. 35,299/-     Rs.47,285/- to Rs.67,414/-

IV                      Rs.12,855/- to Rs.24,799/-       Rs.24,385/- to Rs.47,284/-

V                       Rs.7,115/- to Rs 12,854/-         Rs.13,435/- to Rs 24,384/-

VI                     Below Rs.7,115/-                    Below Rs.13,435/-

Effective Date of revised categories: 1.9.2016.

1. c) Group Savings Linked Insurance (GSLI):

Category                   Pre-revised Pay                                Revised Pay

I                        Rs. 50,810/- and above               Rs. 97,150/- and above

II                       Rs. 35,300/- to Rs. 50,809/-   Rs.67,415/- to Rs.97,149/-

III                      Rs. 24,800/- to Rs. 35,299/-   Rs.47,285/- to Rs.67,414/-

IV                      Rs.12,855/- to Rs.24,799/-      Rs.24,385/- to Rs.47,284/-

V                       Rs.7,115/- to Rs 12,854/-        Rs.13,435/- to Rs 24,384/-

VI                     Below Rs.7,115/-                   Below Rs.13,435/-

Effective Date of revised categories: 1.11.2016.

1. d) New Group Insurance Policy in lieu of GSLI Policy:

Category          Pre-revised Pay                                      Revised Pay

I                     Rs. 50,810/- and above                Rs. 97,150/- and above

II                    Rs. 35,300/- to Rs. 50,809/-     Rs.67,415/- to Rs.97,149/-

III                   Rs. 24,800/- to Rs. 35,299/-     Rs.47,285/- to Rs.67,414/-

IV                   Rs.12,855/- to Rs.24,799/-       Rs.24,385/- to Rs.47,284/-

V                    Rs.7,115/- to Rs 12,854/-         Rs.13,435/- to Rs 24,384/-

VI                  Below Rs.7,115/-                    Below Rs.13,435/-

Effective Date of revised categories: 1.04.2016.

`Pay’ for the purpose of determining the above categories shall include –

i) Basic Pay

ii) Addition to the Basic Pay

iii) Fixed Personal Allowance

iv) All other allowances which rank for the purpose of Provident Fund contribution

30. CLASS OF TRAVEL ON TOUR:

At present the employees whose basic pay is more than Rs.12,070/- are eligible to travel by II Class A.C.  As a consequence of the revision of pay scales, the employees whose basic pay in the revised scale is more than Rs.22,875/- shall be eligible to travel by II Class A.C.  Pay for the purpose shall include basic pay, addition to the basic pay and fixed personal allowance. Effective date of revised criteria shall be 01.02.2016.

31. OFFICIATING ALLOWANCE:

The Officiating Allowance may be revised on the basis of revised pay and allowances and arrears due, if any, may be paid.

32        CASH MEDICAL BENEFIT:

At present the Class-III and Class-IV employees are paid Cash Medical Benefit at rate of Rs 4000/- p.a. All the Class III and Class IV employees shall be paid Cash Medical Benefit at rate of Rs 6650/- p.a. w.e.f. 01.08.2012.

The Cash Medical Benefit will be paid along with January salary every year.

For the year 2012 the proportionate cash medical benefit for 5 months only may be paid.

33. PROJECT ALLOWANCE:

At present, the employees in Class-III cadre attached to the Engineering Department, if posted at project sites, are eligible for the payment of Project Allowance of Rs.170/- per month, which does not count for any purpose.  The said Project Allowance has been increased to Rs.285/- p.m. w.e.f. 1.8.2012. There shall be no change in the existing eligibility conditions.

34. PENSION:

With regard to the Dearness Relief, Family Pension and Minimum Pension provided by the Life Insurance Corporation of India (Employees) Pension Rules, 1995, instructions shall be issued separately.

35. RECOVERY OF   DUES  FROM  ARREARS   PAYMENTS   EMANATING   FROM IMPOSITION OF PENALTY:

The penalty dealing with recovery of loss specified under Rule 39(1) (c) of L.I.C. of India (Staff) Rules, 1960 read as under:

“ recovery from pay or such other amount as may be due to him of the whole or part of any pecuniary loss caused to the Corporation by negligence or breach of orders.”

The aforesaid Rule is self-explanatory which clearly implies that recoveries can also be made from the arrears payable to the concerned employees.

36. INSTRUCTIONS FOR PAYMENT OF ARREARS:

The revision of various items come into force as prescribed in the Life Insurance Corporation of India Class-III and Class-IV Employees (Revision of Terms and Conditions of Service) Amendment Rules, 2016.  It has now, therefore, become necessary to make payment of arrears on account of the revision in the scales of pay and other benefits from the relevant due dates. While calculating the House Rent Allowance, City Compensatory Allowance, Special Allowances   including   Special   Allowance   for   Passing   Examinations   and   Graduation Allowance, care has to be taken to ensure that the instructions contained herein are strictly followed.  Broadly, payment of arrears/recoveries would arise in respect of the following:-

I. Arrears arising out of fixation in the revised scale of pay and allowances;

II. Change   in   the   basic   pay   and   allowances   because   of   grant   of   Normal   Grade Increment/Stagnation Increment/Promotion to the higher cadre;

III.   Subsistence Allowance;

IV. Difference in Encashment of Privilege Leave;

V. Fixed Personal Allowance/Difference in Fixed Personal Allowance;

VI.   Gratuity;

VII.   Project Allowance;

VIII.   Revision of Special Allowance for Passing Examinations.

IX.   Cash Medical Benefit

X. Functional Allowances and Special Allowances.

XI.   Revision of Hill Allowance.

XII.   Recovery on account of EOL, strike, walk-out, etc.;

XIII.   Employees on sick leave on half-pay;

XIV.   Payment/recovery in ex-gratia payment in lieu of bonus;

Calculation  and  Payment  of  arrears  should  be  made  through  eFEAP  Module  only, wherever it is operative.

37. INCOME-TAX DEDUCTION:

In respect of Income-tax to be deducted from the arrears, the instructions issued by the Finance & Accounts Department in this regard may be followed (Please refer to Cir.No.EDA/ZDB/998 dated 01/01/2016).

38. INFORMATION TO BE FURNISHED TO THE CENTRAL OFFICE:

After payment of arrears, the Divisional Office should furnish the information in respect of total amount paid by the offices under their control under various components which form part of arrears of salary (like Basic Pay, DA, HRA, CCA, Transport Allowance, Cash Medical Benefit, Other Allowances, etc.) to the controlling Zonal Office.   Information only in respect of consolidated amounts paid by way of arrears under each head should be furnished and not the amount paid to the individual employees.   The Zonal Offices shall, in turn, furnish the consolidated information in respect of the zone as a whole to the Personnel/ER Department, Central  Office.    All  other  offices  not  covered  by  the  above  shall  directly  furnish  the information to the Personnel/ER Department, Central Office.

39. DATE OF PAYMENT:

The arrears may be paid as early as possible.

40. INTERPRETATION:

Where any doubt or difficulty arises as to the interpretation of these instructions it shall be referred to the Chairman for his decision.

EXECUTIVE DIRECTOR (P)

Click Here to Download Fitment Chart

                                   FITMENT CHART                                                             

 Appendix-II

* Stagnation Increments

Appendix-III

Form of option to be exercised by the Class-III and Class-IV Employees under Rule 1 of the Life Insurance Corporation of  India  Class-III  and  Class-IV  Employees  (Revision  of Terms and  Conditions  of  Service) Amendment Rules, 2016

To,

Life Insurance Corporation of India,

                                               Office,

In accordance with sub-clause (3) of Clause 4 of the Life Insurance Corporation of India Class-III and Class-IV Employees (Revision of Terms and Conditions of Service) Instructions, 2016, I hereby opt to be governed by the provisions of the Life Insurance Corporation of India Class-III and Class-IV Employees (Revision of Terms and Conditions of Service) Amendment Rules, 2016 with effect from                              .  I hereby understand and agree that no arrears shall be paid to me for the period from 1.8.2012 to                      on account of Amendment Rules, 2016.

Date                  :

Full Name         :

Designation :

S.R.No.    :

Office               :

Place                 :

(Signature)

Appendix-III-A

(Form for re-exercising of option for fixation on promotion)

To,

Form of option to be exercised by an officer under Clause 4(4) of the Life Insurance Corporation of India Class-III & Class IV Employees (Revision of Terms and Conditions of Service) Instructions, 2016      

Life Insurance Corporation of India,

                                               Office,

In accordance with sub-clause(4) of Clause 4 of the Life Insurance Corporation of India Class-III and Class-IV Employees (Revision of Terms and Conditions of Service) Instructions, 2016,  I  hereby  request  you  to  fix  the  salary  in  the                                           cadre  from                                 (indicate the date of option).

Date                  :

Full Name         :

Designation :

S.R.No.    :

Office               :

Place                 :

(Signature)

 Appendix-IV

1. NO. OF SLABS FOR WHICH DEARNESS ALLOWANCE PAYABLE AS PER THE PRE-REVISED AND REVISED RULES

Period	As per the pre-revised rules (Scales linked to 2944 Points)	As per the revised rules (Scales linked to 4708 Points)
August 2012 to October 2012	441	0
November 2012 to January 2013	483	42
February 2013 to April 2013	508	67
May 2013 to July 2013	534	93
August 2013 to October 2013	566	125
November 2013 to January 2014	614	173
February 2014 to April 2014	639	198
May 2014 to July 2014	622	181
August 2014 to October 2014	656	215
November 2014 to January 2015	705	264
February 2015 to April 2015	707	266
May 2015 to July 2015	711	270
August 2015 to October 2015	738	297
November 2015 to January 2016	772	331

APPENDIX V

Fixed Personal Allowance payable to

Class-III and Class-IV Employees on revision

Category	Existing Rs.	Revised Rs.
Sweepers	315.00	600.00
Peons	390.00	745.00
Drivers	390.00	745.00
Record Clerks	480.00	915.00
Assistants/ Stenographers/ Higher       Grade Assistants	840.00	1610.00

APPENDIX- V(A)

CLASSIFICATION CITIES FOR THE PURPOSE OF HOUSE RENT ALLOWANCE

CATEGORY-I	CATEGORY-II	CATEGORY-III
KOLKATA (including municipal areas comprising city of Calcutta (including Behala, Alipore, Cossipur Tollegunge) Howrah, Barrackpore (including N.Barrackpore) Garden Reach, Baranagore, South Suburban, Muncipal Area, Dum Dum (including South Dum Dum) Kamarhatti, Panibati, Kharda, Titagarh, Garulia, Bhatpara, Naihati, Bally, Uttarpara, Konnagar, Rishara, Serampore, Baidyabati, Champdani, Bhadreshwar, Chandranagar, Hoogly Chinsuria, Budge Budge, Habra, Baruipur, Barasat and Uluberia CHENNAI MUMBAI (including areas comprising within the limits of the Mumbai Municipal Corporation (Greater Mumbai) Dombvli, Kalyan, Thane, Bhivandi, Ulhasnagar and Bassein Municipalities) Navi Mumbai NEW DELHI Faridabad Ghaziabad Gurgaon Noida HYDERABAD BENGALURU AHMEDABAD Gandhinagar PUNE (including Pimpri & Chinchwad) SURAT	Agra Allahabad Asansol Bhopal Coimbatore (including Sulur) Goa (Entire State) Indore Jabalpur Jaipur Jamshedpur Kannur Kanpur Kochi Kozhikode Lucknow Ludhiana Madurai ( including Tirunagar ) Mallapuram Meerut Nagpur Nasik Patna Rajkot Srinagar Thiruvananthapuram Thrissur Vadodara Varanasi Vijaywada Visakhapatnam (including Gajuvaka)	All other places

APPENDIX- V(B)

CLASSIFICATION CITIES FOR THE PURPOSE OF CITY COMPENSATORY ALLOWANCE

CATEGORY-I	CATEGORY-II	CATEGORY-III
KOLKATA (including municipal areas comprising city of Calcutta (including Behala, Alipore, Cossipur Tollegunge) Howrah, Barrackpore (including N.Barrackpore) Garden Reach, Baranagore, South Suburban, Muncipal Area, Dum Dum (including South Dum Dum) Kamarhatti, Panibati, Kharda, Titagarh, Garulia, Bhatpara, Naihati, Bally, Uttarpara, Konnagar, Rishara, Serampore, Baidyabati, Champdani, Bhadreshwar, Chandranagar, Hoogly Chinsuria, Budge Budge, Habra, Baruipur, Barasat and Uluberia CHENNAI MUMBAI (including areas comprising within the limits of the Mumbai Municipal Corporation (Greater Mumbai) Dombvli, Kalyan, Thane, Bhivandi, Ulhasnagar and Bassein Municipalities) Navi Mumbai NEW DELHI Faridabad Ghaziabad Gurgaon Noida HYDERABAD BENGALURU AHMEDABAD Gandhinagar PUNE (including Pimpri & Chinchwad) SURAT	Agra Allahabad Asansol Bhopal Coimbatore (including Sulur) Goa (Entire State) Indore Jabalpur Jaipur Jamshedpur Kannur Kanpur Kochi Kozhikode Lucknow Ludhiana Madurai ( including Tirunagar ) Mallapuram Meerut Nagpur Nasik Patna Rajkot Srinagar Thiruvananthapuram Thrissur Vadodara Varanasi Vijaywada Visakhapatnam (including Gajuvaka)	Agartala Amravati Aizwal Aligarh Amritsar Aurangabad Ajmer Bareilly Belgaum Bhavnagar Bhubaneshwar Bikaner Bokaro Steel Chandigarh Cuttack Dehradun Dhanbad (including Sindri and Katras) Durg-Bhilai Durgapur Erode Firozabad Gangtok Gauhati Gorakhpur Guntur Gulbarga Gwalior Hubli-Dharwad Imphal Itanagar Jalandhar Jamnagar Jammu Jhansi Jodhpur Kohima Kolhapur Kollam Kota	Malegaon Mangalore Mohali Moradabad Mysore Nanded-Waghala Nellore Panchkula Pondicherry Port Blair Raipur Ranchi Rourkela Saharanpur Salem Sangli Shimla Shillong Sholapur Siliguri Tiruchirapalli Tiruppur Ujjain Warngal

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