LIC Wage Revision Amendment Rules 2021
Life Insurance Corporation of India Class – III & Class – IV Employees (Revision Terms and Conditions of service) Amendment Rules 2021
LIFE INSURANCE CORPORATION OF INDIA
CENTRAL OFFICE, MUMBAI
Department: Personnel/ER
Circular No.: Per/ER-A/268/2021
‘Yogakshema’
JeevanBima Marg
Mumbai-400 021
19th April, 2021.
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. 2021.
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, 2021 (hereinafter referred to as the ‘Amended Revision Rules’),
2. Life Insurance Corporation of India Class-III Employees (Special Allowance for Passing Examinations) Amendment Rules, 2021,
3. Life Insurance Corporation of India (Special Area Allowance) Amendment Rules, 2021.
[Copies of the said Amended Rules are appended as Appendix-1.1].
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, 2021.
2. DEFINITIONS:
a) “Date of Notification” means 15.04.2021.
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” mean the scales which were applicable to the employees immediately before they were governed by the Amended Revision Rules.
d) “New Scales” or “revised scales” mean the scales as revised by the Amended Revision Rules.
e) “Option under the Revision Rules” means the option referred to in sub-rule(3), 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 01.08.2017 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 01.08.2017 and 15.04.2021 (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 hidia (Staff) Rules, 1960 on or before the date of notification.
4. METHOD OF FIXATION:
(1) (a) For the limited period from 01.08.2017 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. 01.08.2017 with reference to the basic pay as on 01.08.2017 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 wIII have to be referred to and the revised basic pay shall be fixed corresponding to the pre-revised basic pay at eveiy 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 l51 August, 2017 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 wIII be fixed in the same manner as is done in the case of other employees recruited by the Corporation.
(3) The Amended Revision Rules, 2021 provide for an option to the employees to be governed by the said rules from any date not earlier than 01.08.2017 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 30.04.2021. 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 01.08.2017, 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 30.04.2021 in the Proforma prescribed in Appendix I1I-A and his salary so re-fixed in accordance with this option will be final.
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.
Rule 7 (b) has been amended to provide one further addition to basic pay equal to the last increment drawn by an employee in the scale of pay of Higher Grade Assistant after two years from availing the sixth such additional increment.
The release of addition to the basic pay in all cases shall be subject to the employee satisfying the existing conditions relating to the release of such additions.
DEARNESS ALLOWANCE:
(1) Rule 5of the Amended Revision Rules substitutes sub-rule(l) 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 0.08% of pay plus Special Allowance as per new Rule 13(B) for every 4 points increase or fall, as the case may be, in the quarterly average of All India Consumer Price Index above 6352 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 and special allowance under Rule 13B (Rule 9 of amended rules).
(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 Muriibai, Kolkata, Chennai, New Delhi, Noida, Faridabad, Ghaziabad, Gurugram, Navi Mumbai, Hyderabad, Bengaluru and other cities with population of45 lakh and above. | 10% of Pay subject to the minimum of Rs. 1,720/- p.m. and the maximum of Rs.7,840/- p.m. |
| 2. | Cities with population exceeding 12 lakh, but less than 45 lakh and except those mentioned at (1) and any city in the State of Goa. | 8% of Pay subject to the minimum of Rs. 1,475/- p.m. and the maximum of Rs.6,620/- p.m. |
| 3. | Other places. | 7% of Pay subject to the minimum of Rs. 1,400/- p.m. and the maximum of Rs.6,370/- 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 agglomerations.
(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 referred in sub-rule (b)(ii) of Rule 19A, special allowance for passing examinations under Life Insurance Corporation of India Class-III Employees (Special Allowance for Passing Examinations) Rules, 1988 and Fixed Personal Allowance as per Rule 19D.
(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 01.04.1983 the House Rent Allowance which was being paid to them on the day immediately preceding 01.04.1983 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 license fee as may be decided by the Corporation from time to time. At present it is being deducted at the rate of 0.75% of the minimum of the scale. The revised rate of deduction shall be 0.50 %of minimum of the scale with effect from 01.05.2021. Till 30.04.2021, the amount of license 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 license 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 license 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. 01.08.2017. The rates are as under:-
| S.No. | Place of posting | Rate of CCA |
| (1) | (2) | (3) |
| i. | Cities of Mumbai, Kolkata, Chennai, New Delhi, Noida, Faridabad, Ghaziabad, Gurugram, Navi Mumbai, Hyderabad, Bengaluru and other cities with population Of 45 lakh and above. | 3% of Pay subject to the minimum of Rs.510/- p.m. and the maximum of Rs.l,55.5/-p.m. |
| ii. | Cities with population exceeding 12 lakh, but less than 45 lakh and except mentioned at (1) and any city in the State of Goa. | 2.5% of Pay subject to the minimum of Rs.420/- p.m. and the maximum of Rs.l,460/-p.m. |
| iii. | Cities with population of five lakh and above but not exceeding twelve lakh, State Capitals with population not exceeding twelve lakh, Chandigarh, Mohali, Puducherry, Port Blair and Panchkula. | 2% of Pay subject to the minimum of Rs. 310/- p.m. and the maximum of Rs.l,255/-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 agglomerations.
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.
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 01.08.2017 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:
A) Higher Grade Assistants appointed as Internal Audit/Inspection Assistants
a) For the first five years – Rs. 1,525/- per month
b) For the next five years – Rs. 1,740/-per month
c) For the subsequent years – Rs. 1880/-per month
B) Assistants appointed as receiving and paying Cashiers -Rs.3,530/- per month.
C) Head Peons, Liftmen and Watchmen – Rs. 1,620/- 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:215/- per month
Operators in the scale of Pay of Record Clerks
Microprocessor Operators in the scale of – Rs.405/- per month
Pay of Assistants
Programmers in the scale of pay of – Rs. 1,270/-per month
Higher Grade Assistants
Provided that functional allowance of Rs. 1,270/- 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.170/- per month.
These revised rates of Functional Allowance shall come into force from 01.08.2017.
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 hIII allowance with effect from 01.08.2017, which are as under:
| S.No. | Places | Rates |
| (!) | (2) | (3) |
| 1. | Posted at a place situated at a height of 1,500 metres or more above the mean sea level | At the rate of 2.5% of Basic Pay subject to maximum of Rs. 1,000/-per month |
| 2. . | Posted at a place situated at a height of 1,000 metres or more but less than 1,500 metres above the mean sea level, or at Mercara, or at a place which is specifically declared as a —hill station by the Central Government or the State Government concerned for their employees | At the rate of 2% of Basic Pay subject to maximum of Rs. 790/- per month |
| 3. | Posted at a place situated at a height of not less than 750 metres or more above the mean sea level and which is surrounded by and accessible only through hills having a height of 1,000 metres or more above the mean sea level | At the rate of 2% of Basic Pay subject to maximum of Rs. 790/- per month. |
Pay for the purpose of grant of HIII 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. SPECIAL ALLOWANCE :
A new rule 13B ‘Special Allowance’ has been inserted in Amended Revision Rules. The allowance under this rule shall be reckoned for the purpose of calculation of dearness allowance but shall not be reckoned for the purposes of Provident Fund, gratuity, House Rent Allowance, pension, encashment of privilege leave and fixation of pay on promotion. The amount of Special Allowance to all Class III and Class IV shall be paid as per the table placed below:-
| SI No. | Class III / Class IV employees | Allowance per month (Rs.) |
| ‘ 1. | Higher Grade Assistant | 3,000 |
| 2. | Stenographer | 2,500 |
| 3. | Assistant | 2,000 |
| 4. | Record Clerk | 1,800 |
| 5. | Driver | 1,800 |
| 6. | Peon | 1,600 |
| 7. | Sweeper | 1,500 |
11. 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, 2017, 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, 2017, 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.
12. GRATUITY:
There is no change in the rales regarding Gratuity. However, the employees who have retired or expired on or after 1.8.2017 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 rales 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 01.08.2017 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 and Rule 13B of Revision Rules shall not count for the purpose of calculation of Gratuity.
13. GRADUATION INCREMENTS AND GRADUATION ALLOWANCE:
Graduation Increments:
At present an employee in the scale of pay 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.755/- 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 recognized- Rs. 1,625/- 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.830/- 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. 1,625/- 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.
14. 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 01.08,2017 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 & Rule 13(B) of Revision Rules shall not count for the purpose of calculation of encashment of Privilege Leave.
15. 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 01.08.2017. 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.
16. 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.265/- p.m. with effect from 01.05.2021,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.
17. TRANSPORT ALLOWANCE:
Transport Allowance will be payable to every Class III and IV employee at the rate of Rs.680/- per month with effect from 01.08.2017.
18. SPECIAL ALLOWANCE FOR PASSING EXAMINATIONS:
The Life Insurance Corporation of India Class-III Employees (Special Allowance for Passing Examinations) Amendment Rules, 2021, 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. 01.08.2017.0ther terms and conditions for the release of Special Allowance shall remain unchanged.
19. SPECIAL AREA ALLOWANCE:
The Central Govt, has vide a separate notification dated 15.04.2021, amended the Life Insurance Corporation of India (Special Area Allowance) Rules, 1988 revising the rates of Special Area Allowance. The amendment has come into force w.e.f. 1.8.2017. The conditions regarding release of the said allowance shall remain unchanged and the rate of the allowance shall be as per Annexure VI.
20. OVERTIME:
As per the provision of sub-rule (4) of Rule 1 of the Amended Revision Rules, 2021, no arrears on account of over time payment shall be made for the period from 01.08.2017 to the date of notification. Therefore, cases of over-time payments should not be re-opened.
21. WASHING ALLOWANCE:
The Washing Allowance payable to Class-IV employees has been increased from Rs.250/- to Rs.355/- per month with effect from 01.08.2017. 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 01.08.2017:
Class-III employees who are promoted and fixed in the scale of pay of Class-I after 01.08.2017 may be paid the arrears upto the date of fixation in Class-1 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 2017-18(from 01.08.2017 to 31.03.2018) 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 theemployee’s salary exceeds Rs.21,000/- 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.
25. 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 01.08.2017 may be reviewed and difference, if any, paid.
26. EMPLOYEES WHO HAVE DIED, RETIRED AFTER 01.08.2017:
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 01.08.2017 may be paid the arrears due on account of revision upto the date of cessation of their service.
27. 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, transport allowance and special allowance under Rule 13B shall not be taken into account.
28. EMPLOYEES RECRUITED AS DEVELOPMENT OFFICERS:
Class-III employees appointed as Development Officers in Class-II after 01.08.2017 shall be paid arrears upto the date of appointment in Class-II.
29. STRIKES, WALK-OUTS, ETC.:
Suitable recovery on account of strikes, walk-outs, etc. shall be made while paying the arrears.
30. 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:
a) Group Mediclaim:
| Category | Pre-revised pay | Revised Pay |
| I | Rs.58,690/- and above | Rs.96,140/-and above |
| II | Rs.42,196/- to Rs.58,689/- | Rs.69,046/- to Rs.96,139/- |
| III | upto Rs.42,195/- | upto Rs.69,045/- |
Effective Date of revised categories: 01.04.2022.
b) Group Term Insurance Scheme(GTIS):
| Category | Pre-revised pay | Revised Pay |
| I | Rs.97,150/- and above | Rs. 1,59,340/- and above |
| II | Rs.67,415/- to Rs.97,149/- | Rs. 1,10,465/-to Rs. 1,59,339/- |
| III | Rs.47,285/- to Rs.67,414/- | Rs.77,385/- to Rs.l,I0,464/- |
| IV | Rs.24,385 to Rs.47,284/- | Rs.39,735/- to Rs.77,384/- |
| V | Rs. 13,435/-to Rs. 24,384/- | Rs.21,825/-to Rs.39,734/- |
| VI | Below Rs. 13,435/- | Below Rs.21,825/- |
Effective Date of revised categories: 01. 09.2021.
c) Group Savings Linked Insurance (GSLI):
| Category | Pre-revised pay | Revised pay |
| I | Rs.97,150/-and above | Rs.l ,59,340/- and above |
| II | Rs.67,415/- to Rs.97,149/- | Rs. 1,10,465/- to Rs.l,59,339/- |
| III | Rs.47,285/- to Rs.67,414/- | Rs.77,385/- to Rs.l,10,464/- |
| IV | Rs.24,385 to Rs.47,284/- | Rs.39,735/- to Rs.77,384/- |
| V | Rs. 13,435/- to Rs. 24,384/- | Rs.21,825/-to Rs.39,734/- |
| VI | Below Rs. 13,435/- | Below Rs.21,825/- |
Effective Date of revised categories: 01.11.2021.
d) New Group Insurance Policy in lieu of GSLI Policy:
| Category | Pre-revised pay | Revised pay |
| I | Rs.97,150/-and above | Rs. 1,59,340/- and above |
| II | Rs.67,415/-to Rs.97,149/- | Rs. 1,10,465/- to Rs. 1,59,339/- |
| m | Rs.47,285/-to Rs.67,414/- | Rs.77,385/-to Rs.l, 10,464/- |
| IV | Rs.24,385 to Rs.47,284/- | Rs.39,735/- to Rs.77,384/- |
| V | Rs. 13,435/- to Rs. 24,384/- | Rs.21,825/- to Rs.39,734/- |
| VI | Below Rs.l3,435/- | Below Rs.21,825/- |
Effective Date of revised categories: 01.04.2022.
‘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.
31. CLASS OF TRAVEL ON TOUR:
At present the employees whose basic pay is more than Rs.22,875/- 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.37,245/- 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 01.05.2021.
32. OFFICIATING ALLOWANCE:
The Officiating Allowance may be revised on the basis of revised pay and allowances and arrears due, if any, may be paid.
33. CASH MEDICAL BENEFIT:
At present the Class-III and Class-IV employees are paid Cash Medical Benefit at rate of Rs6,650/- p.a. All the Class III and Class IV employees shall be paid Cash Medical Benefit at rate of Rs9,800/-p.a. w.e.f. 01.08.2017.
The Cash Medical Benefit will be paid along with January salary every year.
For the year 2017 the proportionate cash medical benefit for 5 months only may be paid.
34. 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.285/- per month, which does not count for any purpose. The said Project Allowance has been increased to Rs.405/- p.m. w.e.f. 01.08.2017. There shall be no change in the existing eligibility conditions.
35. 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.
36. 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.
37. 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, 2021. 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 and Special Allowance under Rule 13B, 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 HIII 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;
XV. Special Allowance under Rule 13B.
XVI. Revision of Special Area Allowance;
Calculation and Payment of arrears should be made through eFEAP Module only, wherever it is operative.
38. INCOME-TAX DEDUCTION:
In respect of Income-tax to be deducted from the arrears, the instructions issued by the Finance & Accounts Department from time to time in this regard may be followed.
39. 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.
40. DATE OF PAYMENT:
The arrears may be paid as early as possible.
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 (Personnel)
Note: This document is the property of the Life Insurance Corporation of India and its reproduction in any form and/or transmission and/or publication on any social medium without the express permission of the Life Insurance Corporation of India will be treated as a violation of the LIC of India (Staff Regulations), 1960, as amended from time to time, and the relevant provisions of the Information Technology Act (2008).