New Delhi: In what could be good news, employees working the General Insurance public sector undertakings (PSU) could finally witness a 15% wage revision in the next few days, according to a report by Zee Business.
According to the information shared by the Finance Ministry, the revisions of wages for 60,000 PSU employees will take place in the year 2021. This means that the announcement will be made soon in the coming days.
Wage revision usually takes place once in five years. The last time employees of General Insurance witnessed wage revision was way back in 2017. Therefore, thousand of PSU employees are waiting for an increase in their wages.
Recently, GIPSA Chairman and CMD of New India Assurance Atul Sahai said ” Wage revision issue will be resolved very soon, mostly till December but the employee should be ready to struggle for arrears” He was addressing a group of employees, the report said.
President of National Confederation of General Insurance Officers Association, (CONFED) Vijay Prakash Sharma reportedly said that “15% where division should be on the pattern of LIC and employee should get arrears also.”.
Currently, there are four PSUs in the general insurance sector – the National Insurance, the New India Assurance, the Oriental Insurance and the United India Insurance. More than 60,000 employees work with these firms.
Out of the four firms, only New India Assurance is a public listed company and appears to be the only one in good financial condition. The rest insurance companies are currently struggling financially due to a decreased market share and increasing competition from private players. Also Read: EPFO will invest 5% of annual deposits in alternative funds, InvITs
Moreover, Finance Minister Nirmala Sitaraman, in her 2021 Union Budget speech, had pointed out that the government will privatise one of the general insurance companies. Also Read: THIS LIC Scheme will give money after retirement: Know details here