- There has been no pay rise for the last five years
- The salaries of 60,000 public sector workers will be increased
Employees working in public sector companies in the field of general insurance will get the benefits of this pay hike. The finance ministry has also reportedly hinted at a pay rise this year. An announcement regarding this may come soon.
Salary revision is usually once in five years. The last pay revision for employees in the general insurance sector was in 2017. Protests were also high against this. Atul Sahai, CMD, New India Assurance, said he hoped the issues related to the pay revision would be resolved soon. The issue is expected to be decided in December. He, however, said that the employees should be prepared to go on strike if they do not receive their dues as their salaries have not been increased for the last five years.
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In the public sector insurance sector, there are four government-owned companies: National Insurance, New India Assurance, Oriental Insurance and United India Insurance. New India Assurance is the only listed company. The other three insurance companies are facing financial losses due to declining market share. The Finance Minister had announced the privatization of an insurance company in the Union Budget 2021
Earlier, the government had raised the poverty line for central government employees and pensioners from 17 per cent to 28 per cent. The decision was taken at a cabinet meeting chaired by Prime Minister Narendra Modi. It was announced that the revised DA rates would come into effect from July 1.
Last fiscal, the central government raised the poverty line for employees and pensioners to 23 per cent, but did not provide it in the context of Kovid. In addition, the pay benefits of employees were cut. As a result, the DA was raised from 17 per cent to 28 per cent, an increase of 11 per cent.