Charter of Demands of LIC Employees
ALL INDIA INSURANCE EMPLOYEES’ ASSOCIATION
CHARTER OF DEMANDS
The present wage structure for Class III and IV employees of LIC has come to an end on July 31, 2022. As such, revision of wage has become due on August 1, 2022.
PART – I
(PAY & ALLOWANCES)
There should be a wage increase of 40% across the board on the wage bill as on August 1, 2022.
1. Sweepers, Cleaners and Gardeners shall be in Grade A
2. Sepoys, Hamals, Watchmen, Caretakers, Liftmen and such other employees shall be in Grade B
3. Drivers shall be in Grade C
4. Record Clerks shall be in Grade D
5. Assistants, Telephone Operators, Store Keepers, Typists, Receiving and Paying Cashiers, Micro Process Operators, Building Supervisors / Building Inspectors and such other employees shall be in Grade E
6. Higher Grade Assistants, HGA (Programmers), HGA(Steno), HGA(Finance), Actuarial Assistants, Internal Audit Assistants, Stenographers, Librarians, Language Assistants, Projectionists and such other employees shall be in Grade F
FOR ENGINEERING STAFF
1. Engineering staff working as helpers etc., shall be placed in Grade B
2. Masons, Carpenters, Plumbers, Gas Mistry, Wiremen, Electricians, Pump mechanics, Ferro Printers and such other employees shall be in Grade D
3. AC Plant Operators, Engineering Assistants Grade III, Engineering Draftsmen Grade III, Architectural Assistants Grade III and such other employees shall be in Grade E
4. Engineering Assistants Grade II, Engineering Draftsmen Grade II, Architectural Assistants Grade II and such other employees shall be in Grade F
SCALES OF PAY
Revised Basic Pay is to be formulated with merger of Dearness Allowance at consumer price index as at quarter ending June 2022 and a loading commensurate with the demand for wage hike.
Fitment shall be on stage-to-stage basis.
The basic pay structure should be a continuous one. On reaching the maximum of the particular scale of Pay, the employee’s basic pay would automatically go to the next higher promotional scale of pay without any change in the nomenclature of post held. However, this shall not affect the promotional vacancies that arise through normal promotional avenues. For all class IV employees the next scale of pay shall be the scale applicable to Record Clerks. For Record Clerks, the next scale of pay shall be the scale applicable to Assistants. Similarly, for the employees in Assistant scale the next scale of pay shall be the scale applicable to HGA. For employees in HGA cadre, the next scale of pay shall be the scale applicable to AAOs.
Dearness Allowance shall be payable on the basis of 100% neutralization for every full four points rise or fall in All India Consumer Price Index for industrial workers [base 1960=100). The revision shall be made quarterly as is being done currently.
HOUSE RENT ALLOWANCE:
House Rent Allowance shall be paid at the rate of 25%, 20% and 18% respectively for the Categories classified as at present as I, II & III as per latest Census. HRA should be paid on Basic Pay and Special Pay / Allowances, if any and there shall be no ceiling. Employees allotted Staff Quarters shall also be entitled to receive HRA as above.
(Category I -Cities with population of more than 45 lakhs; Category II- Cities with more than 12 lakhs of population; Category III- all other centers)
Leased accommodation facility should be introduced for all class 3 and 4 employees.
CITY COMPENSATORY ALLOWANCE:
CCA shall be paid @ 6%, 5% and 4% respectively for the present classification of centers with the modification that the population for category (iii) shall be 4 lacs and above instead of 5 lacs. There shall be no ceiling.
Mid-term population appraisal being made by the government from time to time shall also be made applicable.
Higher rate of HRA / CCA shall be continued even after transfer to a lower HRA/CCA Centre.
SPECIAL CADRE ALLOWANCE:
The special allowance shall be suitably increased in accordance with the rise in the basic pay. This Allowance shall rank for all terminal benefits.
FUNCTIONAL / SPECIAL ALLOWANCES:
Other special allowances payable to Cashiers, Internal Audit Assistants and to Building Supervisors & Building Inspectors shall be increased and shall count for the purpose of calculation of DA, HRA, encashment of PL, Pension, PF, Gratuity and for fitment on promotion. Allowance to Programmers, MPOs and Project Allowance of Engineering staff should be raised substantially.
GRADUATION INCREMENT/SPECIAL GRADUATION ALLOWANCE:
All class III employees in the scale of Assistant shall be granted two increments on becoming graduate from a recognized university. In case a Record Clerk or Class IV employee becomes a graduate, he shall be paid special graduation allowance equivalent to two increments at the initial stage of the scale of pay of Assistant and the said allowance shall be replaced by two increments on his promotion / selection to the cadre of Assistant.
All class III employees in the scale of Assistant who are graduates and who have reached the maximum of their scale of pay shall be granted special graduation allowance at the rate equivalent to the last increment in the revised scale one year after reaching the maximum. The said allowance shall be doubled on completion of two years from the date of reaching the maximum.
SPECIAL INCREMENTS / SPECIAL ALLOWANCE FOR PASSING TECHNICAL EXAMINATIONS:
All employees belonging to Class III & IV cadre shall be entitled to receive special increments as below on passing the prescribed technical examination
1) Licentiate : 1 Increment
2) Associate : 2 Increments
(One increment for each 3 papers)
3) Fellowship : 2 Increments
(One increment for each 3 papers)
4) MBA / MCA/ AMIE and other such equivalent examinations: 2 Increments
5) Examination of Institute of Actuaries of India: The present scheme of incentives for passing Actuarial Examinations should be improved and rules be simplified.
6) CA / ICWAI / ICSI courses:
a) Intermediate : 2 Increments
b) Final Group A or B : 3 Increments
c) Final Group A & B : 5 Increments
7) Employees securing doctorate (Ph. D) from recognized university should be granted two special increments.
(i) HILL ALLOWANCE :
There shall be a substantial increase in Hill Allowance. This allowance shall be paid irrespective of Special Area Allowance payment.
(ii) KIT ALLOWANCE:
Kit allowance shall be substantially increased. The enhanced quantum shall be paid uniformly to all classes of employees. It shall be paid once in two years. It shall be extended to those who are recruited locally.
(iii) SPECIAL AREA ALLOWANCE:
Special Area Allowance at an agreed rate shall be paid to employees working in border areas, remote areas, difficult areas, and backward / tribal areas, mining areas and disturbed areas, as specified by the Central Government or analogous institutions like Public Sector Banks etc.
(iv) PROJECT AREA ALLOWANCE:
Project allowance for engineers shall be increased substantially. The Project Area Allowance at an agreed rate shall be paid to employees working in Project Areas / Towns and in other centers where Central Government / Public Sector institutions / Banks pay any such allowance.
(v) PARADEEP PORT ALLOWANCE:
Paradeep Port Allowance shall be substantially increased.
(vi) DISCOMFORT ALLOWANCE:
Discomfort Allowance at an agreed rate shall be paid to Drivers with appropriate upward revision. Similarly the employees having outside duties shall also be paid discomfort allowance.
(vii) TRANSPORT ALLOWANCE:
Transport allowance shall be substantially increased. This will be based on the reimbursement of certain specific litres of Petrol for each cadre.
(viii) OFFICIATING ALLOWANCE:
Officiating allowance shall be substantially increased.
(ix) CONVEYANCE FOR PHYSICALLY CHALLENGED EMPLOYEES:
This allowance is not increased since 2011. It shall be increased substantially.
(x) SPECIAL SPORTS ALLOWANCE:
Special sports allowance shall be increased substantially.
(xi) CASH CARRYING ALLOWANCE:
Cash carrying allowance shall be introduced and paid to the concerned staff.
(xii) WASHING ALLOWANCE:
The Washing Allowance being paid to the Class IV employees shall be substantially increased.
REIMUBURSEMENT OF MOBILE PHONE BILL CHARGES:
The mobile phone bill charges reimbursement shall be substantially increased.
REIMUBURSEMENT OF TWO NEWS PAPER BILL EXPENSES:
All Class-III & IV employees shall be given reimbursement for two Newspaper bills.
REIMUBURSEMET OF TEA/COFFEE BILL FOR THE CUSTOMERS:
The tea/coffee expenses shall be reimbursed to Class-III & IV employees.
REIMUBURSEMENT OF PURCHASE OF MOBILE HANDSETS:
The reimbursement of Mobile Handsets to Class-III & IV employees shall be introduced.
REIMUBURSEMENT OF BROAD BAND/MOBILE DATA CHARGES:
Reimbursement of Broadband and Mobile data charges shall be introduced.
REIMUBURSEMENT OF HOUSE CLEANING EXPENSE:
The house cleaning expenses to Class-III & IV shall be introduced.
REIMBURSEMENT OF COST OF FURNITURE:
A scheme for reimbursement of cost of furniture to class-III & IV employees shall be introduced.
There should be substantial improvement in the retirement benefits.
The New Pension Scheme in vogue since 01 April 2010 shall be replaced with the LIC Employees’ Pension Scheme 1995. Every employee shall be covered and governed only by the rules framed under LIC Employees’ Pension Scheme 1995.
The following improvements are necessary in the LIC Employees’ Pension Scheme 1995:
1. There should be periodical revision of Basic Pension with every wage revision.
2. Dearness Allowance should be paid at the uniform rate to all pensioners irrespective of the date of retirement.
3. Family Pension should be at the rate existing in the Central Civil Services rules without any ceiling.
4. Employee on completing 20 years of service should be entitled for full pension.
5. The Basic Pension should be determined on the basis of last drawn pay or average of the last 10 months pay whichever is beneficial.
6. Ex-gratia for the pre-1986 retirees should be enhanced substantially keeping in view the rising cost of living.
7. Commutation of Pension shall be 40% of Pension as against the present limit of one-third.
Contribution to PF shall be at the rate of 10% of the revised Pay and with equal contribution by the employer to the PF / Pension fund as the case may be.
In respect of employees covered under the Defined contribution pension scheme, management’s contribution to PF should be enhanced from 10 to 14% without prejudice to our demand of replacement of the NPS with the LIC Employees’ Pension Scheme 1995. These employees should also be allowed to make voluntary contributions to the Provident Fund Scheme.
The amount of gratuity shall be equivalent to one month’s salary including Basic Pay, DA, and Special Allowance, if any, on the date of cessation of service for every completed year of service or part thereof. The ceiling of 20 months for gratuity under Staff Regulation 77(2) shall be removed.
The PL encashment should be increased from 240 days to 300 days.
The present limit of Free Insurance amount shall be increased for all Class-III and IV employees.
RETIREMENT TRAVELLING ALLOWANCE:
The retirement travelling allowance shall be introduced for class-III & IV employees.
(MEDICAL BENEFIT/ INSURANCE)
CASH MEDICAL BEEFIT:
The Cash medical benefit shall be increased substantially.
The limit of Compulsory family floater Sum Insured shall be increased substantially with the provision of 100 per cent subsidy on this enhanced compulsory family floater Sum Insured. One more option for entry of parents/dependents shall be allowed. Automatic re-entry to the scheme be allowed to dependents if their exit was automatic owing to their surpassing the dependency income limit criteria.
The term cover shall be substantially increased. The amount of risk coverage should in no case be less than the Commutation value payable to the employees had he/she been alive on the due date of settlement.
The GIS coverage benefit was extended to employees who are covered under the Scheme beyond retirement also till the age of 75 years since 2019. The facility should be extended to VRS Optees also who were part of the scheme during their service. The coverage should be enhanced for eligible retired employees also.
Like any other group scheme available to LIC employees, the coverage should be based on Basic pay and not dependent on cadre.
GROUP INSURACE FOR CASH CARRYING PERSONNELS:
The Limit shall be substantially increased.
24 HOUR GROUP PERSONAL ACCIDENT INSURANCE POLICY:
The limit of Sum Assured shall be increased.
HIGH COST/ PROTRACTED TREATMENT:
The Ex-gratia amount under high cost / protracted treatment shall be increased. The amount disallowed under Mediclaim scheme shall be reimbursed under this scheme.
PREVENTIVE HEALTH CHECK UP:
Spouse also shall be given the facility of Preventive Health Checkup. Limits under the scheme should be substantially increased.
The full cost of the vehicle without interest shall be given as vehicle advance. The employee shall have the choice of availing the advance either for two wheeler or four wheeler according to his or her need.
The quantum shall be increased, rules shall be simplified and rebate on interest should be given for income tax purpose. Exemption under section 80E to be allowed.
The interest on basic cadre loan shall be reduced. A Group Insurance Policy covering the outstanding loan shall be introduced as a collateral security to the Housing Loan.
ADVANCE FOR PC/LAPTOP:
The limit shall be increased and the advance shall be without interest. FLOOD/DROUGHT/CYCLONE ADVANCE:
The limit shall be increased and rules shall be simplified.
Limit of advance shall be one month’s Gross Salary without any ceiling.
Bonus shall be paid to all employees irrespective of their salary at a rate not less than 25% of gross salary for each year.
PLLI should be calculated on the Basic Pay and all other allowances that attract dearness allowance.
The quantum of meal coupon of class 3and 4 shall be increased.
LEAVE TRAVEL CONCESSION:
All class III employees should be entitled for travel by Air & Class IV employees shall be entitled to travel by 2nd AC irrespective of their Basic pay. A scheme for encashment of un-availed LTC shall be introduced. Foreign Travel under LTC shall be restored.
TOUR ALLOWENCE AND DAILY ALLOWENCE:
Tour and daily allowance should be at par with other classes.
UNIFORMITY IN SOCIAL BENEFITS:
All Social Benefits / Amenities / Relief shall be uniform to all classes of employees.
TREATMENT OF INTERVENING HOLIDAYS:
Leave may be prefixed or suffixed to a holiday, as is being done today. However, the present practice of treating intervening holidays i.e. holidays in between two periods of leave, as leave should be discontinued.
ACCUMULATION OF PL:
Accumulation of PL shall be allowed up to 330 days.
SPECIAL LEAVE FOR WOMEN:
Women employees suffering from serious gynecological problems relating to menopause shall be entitled to Special Leave.
CHILD CARE LEAVE:
A Child Care Leave for a period of Two Years shall be granted to women employees.
An employee shall be entitled to Sick Leave of 30 days on full pay for each completed year of service. There shall be a provision for granting sick leave in advance to be adjusted against future accrual. Further, the converted sick leave shall be without any limit.
ADDITIONAL CASUAL LEAVE:
The additional casual leave as per Staff Regulations 1960 and as per the settlement with Unions on 20.6.1970 shall be credited after the end of calendar year.
There should be an overall review of the present promotion policy. The promotion policy should be transparent and subjective factors should be eliminated.
An employee with 20 years of service and 50 years of age who has not received any promotion shall be automatically placed in the next higher scale.
FITMENT ON PROMOTION:
There shall be a minimum fitment benefit of two increments in the promotional scale at the time of promotion. Stagnation increment stage shall be considered as a stage for fitment on promotion.
COMMENSURATE INCREASE IN SALARY / ALLOWANCE OF BADLI / PART TIME/ TEMPORARY EMPLOYEES:
Part Time and Temporary employees shall be entitled to commensurate increase in salary and allowances. They shall also be entitled to all other benefits applicable to regular employees.
The contract labour must be abolished.
(RECONGNITION/ PARTICIPATATION IN MANAGEMENT)
RECOGNITION OF TRADE UNION:
Industrial democracy demands recognition of a Trade Union. LIC must immediately take steps to recognize the union enjoying the majority support of Class-III and IV employees.
The employees have been making enormous contribution to the growth and prosperity of the Corporation. They have also been extending support to meet the challenges of the competitive environment. The interests and future of the employees are linked to the interests and future of the Corporation. Hence, the employees must have a voice in the corporate decisions. The representative of the majority union should find a place in the Board of Directors of LIC.
DATE OF EFFECT OF REVISION:
The revised scales of pay and other benefits shall take effect from August 1, 2022 and shall be in force for five years from that date.
The agreed terms shall be incorporated in a formal settlement under the Industrial Disputes Act, 1947.
EXISTING RIGHTS AND PRIVILEGES:
Nothing contained in this Charter of Demands shall adversely affect or take away from any employee or group of employees’ rights, privileges, usages, practices, conventions, amenities or other conditions of service that are already vested in or enjoyed by such employee or group of employees.
The All India Insurance Employees’ Association reserves the right to add, alter or amend any demand in this Charter as may be found necessary at any later date.