The 12% hike for PSU GI staff is accompanied by a rider
Mumbai: Finally, the central government notified a salary increase of 12%, since August 2017, for the 44,000 employees of the General Insurance (IG) PSU industry and also established a rule that the next revision due to from August will be in the form of variable compensation based on the performance of the company and the employee.
“The next revision scheduled from August 2022 will take the form of variable pay based on company and employee performance,” said the notification, issued by Joint Secretary at the Ministry of Finance, Saurabh Mishra.
With the 12% rise and five years of arrears, National Insurance Company (NIC) payroll will be around Rs2,177 crore, Rs 2,080 crore for New India Assurance (NIA), Rs2,135 crore for Oriental Insurance Company (OIC) and Rs1,752 crore for United India
Insurance (UII). In total, there will be an outflow of Rs 8,146 crore from the four companies to meet salary review expenses, analysts said.
Speaking to Bizz Buzz, Trilok Singh, General Secretary of General Insurance Employees’ All India Association (GIEAIA), said, “We salute all officers and members of GIEAIA and all unions, associations and associations of social protection for their long struggle to achieve the current salary revision of 12.05% under extremely difficult conditions, although we demand at the same level as LICI and have done our best. The increase in family pension and company contribution to 14% for NPS optees will also be discussed soon.
Singh further added that the GIEAIA again called on the entire leadership and grassroots to do their best to strengthen the Public Sector General Insurance Companies (PSGICs) to fight against unilateral and unconstitutional taxation. of KPI, restructuring and seriously intensify the fight for training. of a single monolithic company through the merger of the four PSGICs. Earlier, FM Nirmala Sitharaman, after a bit of haggling over “performance-related future salary review”, approved PSUGI industry’s 12% salary review proposal before leaving for the United States for attend the annual meetings of the World Bank and the International Monetary Fund.
Now, the General Insurance Public Sector Association (GIPSA), the coordinating body of the four PSU GI companies and the General Insurance Corporation of India (GIC Re), will issue administrative guidelines on the amount and timing of payment of wages more high for the industry. The unions have criticized the government for mentioning the “conditional review of pay linked to future performance” in the Gazette notification and have previously threatened to go down a course of agitation if such a rule is unilaterally imposed. Vishnu Aggarwal, Secretary General of the Oriental Insurance Company Officers’ Association (OICOA), said: “Now we need to focus on non-core benefits, employer contribution to NPS of 14%, improvement of family pension and other outstanding issues.We may have to resort to the hustle and bustle route in case of unilateral imposition of KPIs, so ask the workforce to be ready for the same. ”
Contrary to our expectations, the ministry has laid down lines concerning the conditional revision of remuneration linked to future performance, which is highly reprehensible. We will take appropriate action in consultation with the National Confederation of General Associations of Insurance Agents (CONFED) and the Joint Forum of Trade Unions (JFTU), he added.
The unions had previously clarified that they were not opposed to the KPI (key performance indicator) being the only criteria for evaluating the performance and salary structure of PSU GI employees in the future, but these concepts require detailed and serious discussion.
The unions want the government to share the report of the consultant prepared by Ernst Young (E&Y), who was hired by GIPSA to make the IG PSU industry nimble and profitable and recommended a “future salary review linked to the performance”, to allow the consultant’s proposals to be studied before their implementation. The unions also raised their demand for the merger of three companies – National Insurance Company (NIC), United India Insurance (UII) and Oriental Insurance Company (OIC) as per the 2018 budget proposals. each employee’s performance evaluation will be tied to the organization’s performance as well as their own performance, GIPSA had said earlier in a letter to industry unions.