A 17 percent basic pay increase for LIC personnel has been approved by the Center, which will help approximately 30,000 retirees and 1 lakh employees.

The increase will cost the corporation Rs 4,000 crore annually as of August 2002.

"The update includes raising the NPS contribution from 10% to 14% in order to better serve the almost 24,000 workers who started work after January 4, 2010. A one-time ex-gratia payment to LIC pensioners is included in the adjustment as a token of gratitude for their significant contributions to the company. More than 30,000 seniors and their families will profit from this. Over 21,000 family pensioners benefited from an earlier government increase in the family pension's quantum," the insurer said in a statement.

"This comprehensive overhaul will benefit both the current and previous generations of LICians and increase LIC's appeal as an employer to prospective employees. The Government of India has our gratitude for this salary revision, which will help all LICians and their families nationwide," the statement added.

The increase follows a 50% increase in Dearness Allowance by the government. According to the current declaration, this indicates that the dearness allowance for central government employees will increase by 4 percent.