The Treasury has announced pay revisions for civil servants and employees of four general public sector insurance companies – New India Assurance, United India Insurance, Oriental Insurance and National Insurance. From now on, the wage revision will not only be linked to the performance of the company, but also of the employees.
“It’s a 12 per cent wage increase for each company with an average additional liability of £2.50 billion per company,” said a senior Treasury official business line. The new wage structure is deemed to have come into effect “on August 1, 2017”. This means that the revised structure applies to those officers and employees who were employed by the corporation or company on or after August 1, 2017. Managers and employees receive a backlog of five years.
According to the latest annual reports from all four companies, as of March 31, 2022, New India Assurance had 13,929 officers and employees. United India Insurance reported 12,837 employees as of March 31, 2021. Oriental Insurance had 10,488 officers/employees as of March 31, 2021, while National Insurance had 9,569 officers/employees as of March 31, 2022. Only New India Assurance is listed on the stock exchange.
The ministry issued three notifications – one for senior officials, one for development staff and one for supervisory, clerical and junior staff. All three communications have a new stipulation that states: “The next revision, due from August 2022, will be in the form of variable compensation based on company and employee performance.” This means that the next revision will be performance based.
One reason for this is the financial position of these four companies. New India Assurances latest annual results show that the 2021-22 financial year ended with a net profit of £1.64 billion. However, United India Insurance ended with a net loss of £984.68 billion for the 2020-21 financial year, National Insurance with a loss of £1,674.74 billion for the 2021-22 financial year and Oriental Insurance with a loss of £1,525.44 billion. £ in FY 2020-21.
Wages in Public Sector General Insurance Companies (PSGIC) are settled periodically on the basis of negotiations between PSGICs and the workers’ unions under the provisions of Section 19 of the Industrial Disputes Act 1947. In the case of non-labor workers, a wage revision will be agreed between PSGICs and organizations of such workers after discussion between them.
PSGICs negotiate/discuss with unions/associations through the General Insurers’ (Public Sector) Association of India (GIPSA). Based on these agreements/discussions, the amendments proposed by GIPSA to the amendments proposed by the central government under Section 17A governing the terms and conditions of PSGIC employees will be considered by the government.