LIFE INSURANCE CORPORATION OF INDIA

CENTRAL OFFICE, MUMBAI

Department: Personnel/ER ‘Yogakshema’

Jeevan Bima Marg
Circular No. : ZD/1161/ASP/2010 Mumbai-400 021.

11th October, 2010

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, 2010.

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, 2010 (hereinafter referred to as the `Amended
Revision Rules'
),

2. Life Insurance Corporation of India Class-III Employees (Special Allowance for Passing
Examinations) Amendment Rules, 2010,

3. Life Insurance Corporation of India (Special Area Allowance) Amendment Rules, 2010,

[Copies of the said Rules are appended as Appendix-I(A to C). ]

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, 2010.

-1-
2. DEFINITIONS:

a) "Date of Notification" means 08.10.2010.

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" means the scales which were applicable to the
employees immediately before they were governed by the Amended Revision Rules.

d) "New Scales" or "revised scales" means the scales as revised by the Amended Revision
Rules.

e) "Option under the Revision Rules" means the option referred to in sub-rule (2), 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
1.8.2007 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 1.8.2007 and 08.10.2010 (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

-2-
 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 India (Staff) Rules, 1960 on or before the date of notification.

4. METHOD OF FIXATION:

(1) (a) For the limited period from 1.8.2007 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. 1.8.2007 with
reference to the basic pay as on 1.8.2007 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 will have to be referred to and the
revised basic pay shall be fitted corresponding to the pre-revised basic pay at every stage
where change in the basic 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 1st August, 2007 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 will be fixed in
the same manner as is done in the case of other employees recruited by the Corporation.

(3) The Amended Revision Rules, 2010 provide for an option to the employees to be governed by
the said rules from any date not earlier than 1.8.2007 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 30.11.2010. The employees who wish to exercise the option may exercise the same
in pro forma prescribed in Appendix-III.

-3-
 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.

5. 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. This rule has
been amended to provide for one more addition to the basic pay. The amended rule is as
follows:

Addition to the Basic Pay after reaching maximum of the scales: Subject to the work record
being found satisfactory,-
(a) an employee,-
(i) in the scale of Record Clerk or Assistant or Stenographer in Class III; or
(ii) in any of the scales in Class-IV

who has reached the maximum of the scale of pay applicable to him may be granted for
every two completed years of service after reaching such maximum, an addition to the
basic pay equal to the last increment drawn by him in the scale of pay, subject to a
maximum of seven such additions :

Provided that no employee shall be entitled to such addition to the basic pay before the
first day of the month following completion of two years after reaching maximum of the
scale of pay or after drawing such additions, as the case may be :

(b) An employee in the scale of pay of Section Head and Higher Grade Assistant who has
reached the maximum of the scale, may be granted for every three completed years of
service after reaching such maximum, an addition to the basic pay equal to the last
increment drawn by him in the scale of pay, subject to the maximum of six such
additions:

-4-
 Provided that no employee shall be entitled to such addition to the basic pay before the
first day of the month following completion of three years after reaching maximum of
the scale of pay or after drawing such additions, as the case may be:

Provided further that where an employee is not granted such addition to the basic pay
referred to in clause (a) or clause (b) on first day of the month following completion of
two years or three years of service, as the case may be, from the date of reaching
maximum of the scale of pay applicable to him or from the last such addition to the basic
pay (such first day of the month following completion of two or three years of service
from the date of reaching maximum of the scale of pay or the last such addition to the
basic pay being hereinafter referred to as "the relevant date", as the case may be), his
case shall fall due for review in each calendar year in the month following that in which
he completes twelve months of service as reckoned from the relevant date, or from the
date of such review, so long as he has not been allowed such addition to the basic pay,
and if it is decided to allow such addition subsequently, it shall take effect from the first
of the month in which the review has fallen due in the calendar year in which the
decision is taken.

Explanation.- For the purposes of this rule ‘calendar year’ means the year from Ist day of
January to 31st day of December”.

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.

6. DEARNESS ALLOWANCE:

(1) Rule 2(iv) of the Amended Revision Rules substitutes sub-rule(1) 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 0.15% of pay for every 4 points increase or fall, as
the case may be, in the quarterly average of All India Consumer Price Index above 2944
points.

-5-
 (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.

(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:
Place of posting Rate of House Rent
Allowance
i. Cities of Mumbai, Kolkata, Chennai, Delhi, Noida, 10% of Pay subject to the
Faridabad, Ghaziabad, Gurgaon, Navi Mumbai, minimum of Rs.700 p.m.
Hyderabad, Bengaluru and other cities with population and the maximum of
of 45 lakhs and above. Rs.3200/- p.m.
ii. Cities with population exceeding 12 lakhs, but less than 8% of Pay subject to the
45 lakhs and except those mentioned at ( i ) and any city minimum of Rs.600 p.m.
in the State of Goa. and the maximum of
Rs.2700/- p.m.
iii. Other places. 7% of Pay subject to the
minimum of Rs.570 p.m.
and the maximum of
Rs.2600/- 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 agglomeration.

(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, special allowance for
passing examinations under Life Insurance Corporation of India Class-III Employees
(Special Allowance for Passing Examinations) Rules, 1988.

-6-
(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 1.4.1983 the House Rent Allowance which was being paid to them on the
day immediately preceding 1.4.1983 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
licence fee as may be decided by the Corporation from time to time. At present it is being
deducted at the rate of 1.75% of the minimum of the scale. The revised rate of deduction
shall be 1.20 % of minimum of the scale with effect from 1.11.2010. Till 31.10.2010, the
amount of licence 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 licence
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 licence 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-VI(A) for HRA.
The cities shall include their urban agglomerations. Hyderabad, Bengaluru, Ahmedabad and
Gandhinagar cities have been upgraded from Category II to Category I and Meerut from
Category III to Category II w.e.f. 01.08.2007 for the purpose of HRA.

-7-
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. 1.8.2007. The rates are as under:-

Place of posting Rate of CCA

i. Cities of Mumbai, Kolkata, Chennai, Delhi, Noida, 3% of Pay subject to the

Faridabad, Ghaziabad, Gurgaon, Navi Mumbai, minimum of Rs.205/- p.m.
Hyderabad, Bengaluru and other cities with population and the maximum of
of 45 lakhs and above. Rs.635/-p.m.

ii. Cities with population exceeding 12 lakhs, but less than 2.5% of Pay subject to
45 lakhs and except mentioned at ( i ) and any city in the the minimum of Rs.170/-
State of Goa. p.m. and the maximum
of Rs.595/-p.m.
iii. Cities with population of five lakhs and above but not 2% of Pay subject to the
exceeding twelve lakhs, State Capitals with population minimum of Rs. 125/-
not exceeding twelve lakhs, Chandigarh, Mohali, p.m. and the maximum
Pondicherry, Port Blair and Panchkula. of Rs.510/-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 agglomeration.

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.

City Compensatory Allowance of Rs.20/- p.m. wherever being paid to any employee in
accordance with sub-rule(2) of Rule 10 of the 1985 Revision Rules may continue to be paid so
long as the employee continues to be posted at that centre.

The charts showing classification of cities have been enclosed as Appendix-VI(B) for CCA.
Hyderabad, Bengaluru, Ahmedabad, Gandhinagar cities have been upgraded from Category II
to Category I and Meerut from Category III to Category II w.e.f. 01.08.2007 for the purpose of
CCA. Whereas Ajmer is upgraded to Category III w.e.f. 01.02.2008 for the purpose of CCA.

-8-
9. SPECIAL ALLOWANCE, FUNCTIONAL ALLOWANCE AND HILL ALLOWANCE:

(1) Special Allowance:

With effect from 1.8.2007 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.650/- per month
b) For the next five years - Rs.740/- per month
c) For the subsequent years - Rs.800/- per month

B) Assistants appointed as receiving and paying Cashiers -Rs.1500/- per month.

No arrears shall be paid w.e.f. 01.08.2007 as the allowance at enhanced rate of Rs. 1500/-
is already being paid as per the Circular No. ZD/1111/ASP/2007 dated 03/11/2007.

C) Head Peons, Liftmen and Watchmen - Rs.520/- 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.90/- per month
Operators in the scale of Pay of Record
Clerks:

Microprocessor Operators in the scale of - Rs. 170/- per month

Assistants

Programmers in the scale of pay of - Rs. 540/- per month

Higher Grade Assistants

Class-IV Employees:
Franking Machine Operators in the scale of Sepoy shall be paid a Functional Allowance of
Rs.70/- per month.
These revised rates of Functional Allowance shall come into force from 1.8.2007.

-9-
 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 hill allowance
with effect from 1.8.2007, which are as under:

i) Posted at places situated at a height at the rate of 2.5% of Basic Pay

of 1,500 meters and over above subject to maximum of Rs.370/- per
mean sea level month
ii) Posted at places situated at a height at the rate of 2% of Basic Pay
of 1,000 meters and over but less subject to maximum of Rs.290/- per
than 1,500 meters above mean sea month
level, at Mercara and at places
which are specifically declared as
‘Hill Stations’ by Central or State
Governments for their employees.

iii) Posted at places situated at a height at the rate of 2% of Basic Pay

of not less than 750 meters above subject to maximum of Rs.290/- per
mean sea level which are month
surrounded by and accessible only
through hills with height of 1000
meters and over above mean sea
level.

Pay for the purpose of grant of Hill 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 -
10. 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, 2007,
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, 2007, 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 covered by a defined contribution pension
scheme to be framed by the Corporation. Separate instructions will be issued in this regard.

- 11 -
11. GRATUITY:

There is no change in the rules regarding Gratuity. However, the employees who have retired
or expired on or after 1.8.2007 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 rules 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 1.8.2007 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 of Revision Rules
shall not count for the purpose of calculation of Gratuity.

12. GRADUATION INCREMENTS AND GRADUATION ALLOWANCE:

Graduation Increments:

At present an employee in the scale 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.320/- 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.

- 12 -
 EMPLOYEES IN THE SCALE OF PAY OF ASSISTANT AND STENOGRAPHER

(1) An employee who has become a graduate of a recognised - Rs.530/- 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.270/- 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.530/- 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.

13. 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 1.8.2007 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 of Revision Rules
shall not count for the purpose of calculation of encashment of Privilege Leave.

- 13 -
14. FIXED PERSONAL ALLOWANCE :

The revised rates of Fixed Personal Allowance payable under Rule 19D of Revision Rules are
shown in Appendix-V. Other conditions in this regard remain unchanged. These revised rates
shall be effective from 1.8.2007. 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.

15. 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.110/- p.m. with effect from 01.11.2010, 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.

16. TRANSPORT ALLOWANCE:

Transport Allowance will be payable to every Class III and IV employee at the rate of Rs.275/-
per month with effect from 1.8.2007.

17. SPECIAL ALLOWANCE FOR PASSING EXAMINATIONS:

The Life Insurance Corporation of India Class-III Employees (Special Allowance for Passing
Examinations) Amendment Rules, 2010, 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. 1.8.2007.
Other terms and conditions for the release of Special Allowance shall remain unchanged. Class
III employees having Company Secretary qualification will also be eligible for the said
allowance w.e.f.01.08.2007.

18. SPECIAL AREA ALLOWANCE:

The Central Govt. has vide a separate notification dated 08.10.2010, 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. 1.8.2007. The conditions
regarding release of the said allowance shall remain unchanged.

- 14 -
19. OVERTIME:

As per the provision of sub rule (4) of Rule 1 of the Amended Revision Rules, 2010, no arrears
on account of over time payment shall be made for the period from 1.8.2007 to the date of
notification. Therefore, cases of over-time payments should not be re-opened.

20. PRODUCTIVITY LINKED LUMPSUM INCENTIVE(PLLI):

The Class III & IV employees of the Corporation shall be paid Productivity Linked Lumpsum
Incentive as under:

(i) For the period from 1st April, 2009 to 31st March, 2010 Productivity Linked
Lumpsum Incentive shall be payable based on the performance of the
Corporation as a whole on the basis of performance parameters based on
Statement of Intent as approved by the Board;

(ii) For the period from 1st April, 2010 onwards Board shall be empowered to
formulate the parameters and performance norms of the Productivity Linked
Lumpsum Incentive for its employees based on Statement of Intent every year
subject to following conditions:

(a) Productivity Linked Lump Sum Incentive shall be payable at the levels of
1%, 2%, 3%, etc. up to a maximum of 6% of the pre-revised annual pay of
individual Class III and Class IV employees as on 1st August, 2007.

(b) Productivity Linked Lump Sum Incentive shall be payable to Class III and
Class IV employees in Corporate Office based on the performance of the
Corporation as a whole.

(c) Productivity Linked Lump Sum Incentive shall be payable to Class III and
Class IV employees in Zonal Office based on the performance of the Zone
as a whole.

(d) Productivity Linked Lump Sum Incentive shall be payable to Class III and
Class IV employees in Divisional/Branch Office based on the
performance of the Division as a whole.

- 15 -
 (e) The threshold minimum Productivity Linked Lump Sum Incentive for
Zonal Office / Divisional Office / Branch Office shall be 50% of the
Corporate level Productivity Linked Lump Sum Incentive .

Notes: For this purpose the annual pay means –

(1) pre-revised basic pay, Dearness Allowance and Fixed Personal Allowance as on
1st August, 2007 in respect of existing Class III and Class IV employees;

(2) pre-revised basic pay and Dearness Allowance as on 1st August, 2007 which
corresponds to the stage where his pay has been fixed on appointment in respect
of those Class III and Class IV employees appointed after 1st August, 2007;

(iii) The instructions regarding the payment of PLLI, if any, for the financial year
2009-2010 shall be issued separately.

(iv) For the Financial Year 2010-2011 and subsequent years, once the accounts of
the Corporation are finalized, the Corporation shall decide about the quantum of
the benefit payable, if any, for the said financial year to the employees on or
after 1st August of the next year for which separate instructions shall be issued
on year to year basis.

21. WASHING ALLOWANCE:

The Washing Allowance payable to Class-IV employees has been increased from Rs.90/- to
Rs.150/- per month with effect from 1.8.2007. 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 1.8.2007:

Class-III employees who are promoted and fixed in the scale of pay of Class-I after 1.8.2007
may be paid the arrears upto the date of fixation in Class-I scale.

- 16 -
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 2007-08 and 2008-09 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 the employees salary exceeds Rs.10,000/- 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.

24. 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
1.8.2007 may be reviewed and difference, if any, paid.

25. EMPLOYEES WHO HAVE DIED, RETIRED AFTER 1.8.2007:

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 1.8.2007 may be paid
the arrears due on account of revision upto the date of cessation of their service.

26. 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 and transport allowance shall not be taken
into account.

- 17 -
27. EMPLOYEES RECRUITED AS DEVELOPMENT OFFICERS:

Class-III employees appointed as Development Officers in Class-II after 1.8.2007 shall be paid
arrears upto the date of appointment in Class-II.

28. STRIKES, WALK-OUTS, ETC.:

Suitable recovery on account of strikes, walk-outs, etc. may be made while paying the arrears.

29. MEDICLAIM, GROUP TERM INSRURANCE SCHEME (GTIS), 1997 AND GROUP
SAVINGS LINKED INSURANCE SCHEME (GSLI):

As a consequence of the revision of pay scales, the categories of Mediclaim Benefit, Group
Term Insurance Scheme (GTIS) and Group Savings Linked Insurance Scheme (GSLI) have
been revised as under:

a) Group Mediclaim:

Category Pre-revised Pay Revised Pay

I Rs. 19,770/- and above Rs. 30,750/- and above

II Rs. 14,241/- to Rs. 19,769/- Rs. 22,146/- to Rs. 30,749/-
III Upto Rs. 14,240/- Upto Rs. 22,145/-

Effective Date of revised categories: 1.4.2010.

b) Group Term Insurance Scheme(GTIS):

Category Pre-revised Pay Revised Pay

I Rs. 30,960/- and above Rs. 50,810/- and above

II Rs. 22,570/- to Rs. 30,959/- Rs. 35,300/- to Rs. 50,809/-
III Rs. 15,970/- to Rs. 22,569/- Rs. 24,800/- to Rs. 35,299/-
IV Rs.8,415/- to Rs.15,969/- Rs.12,855/- to Rs.24,799/-
V Rs.4,730/- to Rs 8,414/- Rs.7,115/- to Rs 12,854/-
VI Below Rs.4,730/- Below Rs.7,115/-

Effective Date of revised categories: 1.2.2011.

- 18 -
 c) Group Savings Linked Insurance (GSLI):

Category Pre-revised Pay Revised Pay

I Rs. 30,960/- and above Rs. 50,810/- and above

II Rs. 22,570/- to Rs. 30,959/- Rs. 35,300/- to Rs. 50,809/-
III Rs. 15,970/- to Rs. 22,569/- Rs. 24,800/- to Rs. 35,299/-
IV Rs.8,415/- to Rs.15,969/- Rs.12,855/- to Rs.24,799/-
V Rs.4,730/- to Rs 8,414/- Rs.7,115/- to Rs 12,854/-
VI Below Rs.4,730/- Below Rs.7,115/-

Effective Date of revised categories: 1.11.2010.

`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.

30. CLASS OF TRAVEL ON TOUR:

At present the employees whose basic pay is more than Rs.7,945/- 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.12,070/- 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 1.11.2010.

31. OFFICIATING ALLOWANCE:

The Officiating Allowance may be revised on the basis of revised pay and allowances and
arrears due, if any, may be paid.

- 19 -
 32 CASH MEDICAL BENEFIT:

At present the Class-III and Class-IV employees are paid Cash Medical Benefit at rate of Rs
2000/- p.a. All the Class III and Class IV employees shall be paid Cash Medical Benefit at rate
of Rs 4000/- p.a. w.e.f. 01.08.2007.

The Cash Medical Benefit will be paid along with January salary every year.

For the year 2007 the proportionate cash medical benefit for 5 months only may be paid.

33. 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.125/- per month, which
does not count for any purpose. The said Project Allowance has been increased to Rs.170/-
p.m. w.e.f. 1.8.2007. There shall be no change in the existing eligibility conditions.

34. 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.

35. INSTRUCTIONS FOR PAYMENT OF ARREARS:

The revision of various items come into force with effect from different dates as prescribed in
the Life Insurance Corporation of India Class-III and Class-IV Employees (Revision of Terms
and Conditions of Service) Amendment Rules, 2010. 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, 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:-

- 20 -
 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. Recovery on account of EOL, strike, walk-out, etc.;
VII. Employees on sick leave on half-pay;
VIII. Gratuity;
IX. Payment/recovery in ex-gratia payment in lieu of bonus;
X. Project Allowance;
XI. Revision of Special Area Allowance;
XII. Revision of Special Allowance for Passing Examinations.
XIII. Cash Medical Benefit
XIV. Functional Allowances and Special Allowances.
XV. Revision of Hill Allowance.

37. INCOME-TAX DEDUCTION:

In respect of Income-tax to be deducted from the arrears, the instructions issued by the Finance
& Accounts Department in this regard may be followed.

38. 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 mentioned in
the proforma 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.

- 21 -
39. DATE OF PAYMENT:

The arrears may be paid as early as possible.

40. 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 (P)

- 22 -
 Appendix-II
FITMENT CHART
STAGES SWEEPER PEON DRIVER REC.CLERK ASSISTANT STENO SEC.HEAD H.G.A.
EXT. REV EXT. REV EXT. REV EXT. REV EXT. REV EXT. REV EXT. REV EXT. REV
1 3905 5865 4105 6180 4665 7085 4665 7085 4995 7640 6250 9580 6490 9965 7370 11425
2 4070 6115 4270 6430 4870 7400 4830 7335 5280 8080 6600 10120 6900 10595 7855 12180
3 4235 6365 4435 6680 5075 7715 4995 7585 5590 8560 6950 10660 7310 11225 8340 12935
4 4400 6615 4600 6930 5280 8030 5160 7835 5900 9040 7300 11200 7720 11855 8825 13690
5 4565 6865 4765 7180 5485 8345 5325 8085 6250 9580 7650 11740 8130 12485 9365 14530
6 4730 7115 4930 7430 5690 8660 5575 8475 6600 10120 8055 12365 8540 13115 9905 15370
7 4905 7380 5105 7695 5895 8975 5825 8865 6950 10660 8460 12990 8950 13745 10445 16210
8 5080 7645 5280 7960 6105 9300 6075 9255 7300 11200 8950 13750 9360 14375 10985 17050
9 5255 7910 5455 8225 6355 9690 6360 9695 7650 11740 9440 14510 9900 15215 11525 17890
10 5430 8175 5630 8490 6605 10080 6645 10135 8055 12365 9930 15270 10440 16055 12065 18730
11 5605 8440 5805 8755 6855 10470 6935 10580 8460 12990 10440 16060 10980 16895 12605 19570
12 5780 8705 5980 9020 7105 10860 7225 11025 8950 13750 10950 16850 11520 17735 13145 20410
13 5955 8970 6155 9285 7355 11250 7515 11470 9440 14510 11490 17690 12060 18575 13685 21250
14 6130 9235 6330 9550 7605 11640 7805 11915 9930 15270 12030 18530 12600 19415 14225 22090
15 6305 9550 6535 9865 7855 12030 8095 12360 10440 16060 12570 19370 13140 20255 14765 22930
16 6510 9865 6745 10190 8105 12420 8385 12805 10950 16850 13110 20210 13680 21095 15305 23770
17 6715 10180 6955 10515 8355 12810 8695 13285 11490 17690 13650 21050 14220 21935 15845 24610
18 6920 10495 7165 10905 8605 13200 9005 13765 12030 18530 14190 21890 14760 22775 16385 25450
19 7125 10810 7415 11295 8855 13590 9315 14245 12570 19370 14730 22730 15300 23615 16925 26290
20 7330 11125 7665 11685 9105 13980 9625 14725 13110 20210 15270 23570 15840 24455 17465* 27130*
21 7535* 11440* 7915* 12075* 9355* 14370* 9935 15205 13650 21050 15810* 24410* 16380* 25295* 18005* 27970*
22 7740* 11755* 8165* 12465* 9605* 14760* 10245 15685 14190* 21890* 16350* 25250* 16920* 26135* 18545* 28810*
23 7945* 12070* 8415* 12855* 9855* 15150* 10555* 16165* 14730* 22730* 16890* 26090* 17460* 26975* 19085* 29650*
24 8150* 12385* 8665* 13245* 10105* 15540* 10865* 16645* 15270* 23570* 17430* 26930* 18000* 27815* 19625* 30490*
25 8355* 12700* 8915* 13635* 10355* 15930* 11175* 17125* 15810* 24410* 17970* 27770* 18540* 28655* 31330*
26 8560* 13015* 9165* 14025* 10605* 16320* 11485* 17605* 16350* 25250* 18510* 28610* 29495*
27 13330* 14415* 16710* 11795* 18085* 16890* 26090* 29450*
28 12105* 18565* 26930*
29 19045*

- 23 -
 Appendix-III

Form of option to be exercised by the Class-III and Class-IV

Employees under Rule 1 of the Life Insurance Corporation
of India Class-III and Class-IV Employees (Revision of
Terms and Conditions of Service) Amendment Rules, 2010

To,

Life Insurance Corporation of India,

_______________________ Office,
_____________________________
_____________________________

In accordance with sub-clause(3) of Clause 4 of the Life Insurance Corporation of India

Class-III and Class-IV Employees (Revision of Terms and Conditions of Service) Instructions,
2010, I hereby opt to be governed by the provisions of the Life Insurance Corporation of India
Class-III and Class-IV Employees (Revision of Terms and Conditions of Service) Amendment
Rules, 2010 with effect from ______________. I hereby understand and agree that no arrears
shall be paid to me for the period from 1.8.2007 to __________ on account of Amendment Rules,
2010.

________________
(Signature)
Date :

Full Name :

Designation :

S.R.No. :

Office :

Place :

- 24 -
 Appendix-IV

NO. OF SLABS FOR WHICH DEARNESS ALLOWANCE PAYABLE AS PER THE

PRE-REVISED AND REVISED RULES

Period As per the pre-revised As per the revised rules

rules (Scales linked to 2328 (Scales linked to 2944
Points) Points)

August 2007 to October 2007 154 0

November 2007 to January 2008 175 21

February 2008 to April 2008 182 28

May 2008 to July 2008 190 36

August 2008 to October 2008 211 57

November 2008 to January 2009 243 89

February 2009 to April 2009 260 106

May 2009 to July 2009 262 108

August 2009 to October 2009 281 127

November 2009 to January 2010 340 186

February 2010 to April 2010 372 218

May 2010 to July 2010 391 237

August 2010 onwards 399 245

- 25 -
 APPENDIX V

Fixed Personal Allowance payable to

Class-III and Class-IV Employees on revision

Category Existing Revised

Rs. Rs.
Sweepers 205.00 315.00

Peons 250.00 390.00

Drivers 250.00 390.00

Record Clerks 310.00 480.00

Assistants/ 540.00 840.00

Stenographers/
Section Heads/
Higher Grade
Assistants/
Superintendents

- 26 -
 APPENDIX- VI (A)

CLASSIFICATION CITIES FOR THE PURPOSE

OF HOUSE RENT ALLOWANCE

CATEGORY-I CATEGORY-II CATEGORY-III

CALCUTTA Agra All other places

(including municipal areas Bhopal
comprising city of Calcutta (including Coimbatore
Behala, Alipore, Cossipur Tollegunge) (including
Howrah, Barrackpore (including Sulur)
N.Barrackpore) Garden Reach, Baranagore,
South Suburban, Muncipal Area, Dum Dum Goa (Entire State)
(including South Dum Dum) Kamarhatti, Indore
Panibati, Kharda, Titagarh, Garulia, Jaipur
Bhatpara, Naihati, Bally, Uttarpara, Kanpur
Konnagar, Rishara, Serampore, Baidyabati, Kochi
Champdani, Bhadreshwar, Chandranagar, Lucknow
Hoogly Chinsuria, Budge Budge, Habra, Ludhiana
Baruipur, Barasat and Uluberia Madurai
( including
CHENNAI Tirunagar )
Meerut
MUMBAI Nagpur
(including areas comprising within the limits Patna
of the Mumbai Municipal Corporation
(Greater Mumbai) Dombvli, Kalyan, Thane, Pune (including Pimpri &
Bhivandi, Ulhasnagar and Bassein Chinchwad)
Municipalities)
Navi Mumbai Surat

NEW DELHI Vadodara

Varanasi
Faridabad
Ghaziabad Visakhapatnam
Gurgaon (including Gajuvaka)
Noida

HYDERABAD
BENGALURU
AHMEDABAD
Gandhinagar

- 27 -
 APPENDIX- VI (B)

CLASSIFICATION CITIES FOR THE PURPOSE

OF CITY COMPENSATORY ALLOWANCE

CATEGORY-I CATEGORY-II CATEGORY-III

CALCUTTA
(including municipal areas Agra Agartala Kozhikode
comprising city of Calcutta Bhopal Amravati Mohali
(including Behala, Alipore, Cossipur Coimbatore Aizwal Mangalore
Tollegunge) Howrah, Barrackpore (including Aligarh Moradabad
(including N.Barrackpore) Garden Sulur) Allahabad Mysore
Reach, Baranagore, South Suburban, Amritsar Nashik
Muncipal Area, Dum Dum Asansol Panchkula
(including South Dum Dum) Goa (Entire State) Aurangabad Pondicherry
Kamarhatti, Panibati, Kharda, Ajmer Port Blair
Titagarh, Garulia, Bhatpara, Naihati, Indore Bareilly Raipur
Bally, Uttarpara, Konnagar, Rishara, Jaipur Belgaum Rajkot
Serampore, Baidyabati, Champdani, Kanpur Bhavnagar Ranchi
Bhadreshwar, Chandranagar, Hoogly Kochi Bhubaneshwar Salem
Chinsuria, Budge Budge, Habra, Lucknow Bikaner Shimla
Baruipur, Barasat and Uluberia Ludhiana Shillong
CHENNAI Madurai Chandigarh Sholapur
( including Tirunagar ) Cuttack Srinagar
MUMBAI Meerut Dehradun Thiruvanantha-
(including areas comprising within Nagpur Dhanbad Puram
the limits of the Mumbai Municipal Patna (including Sindri Tiruchirapalli
Corporation (Greater Mumbai) and Katras) Tiruppur
Dombvli, Kalyan, Thane, Bhivandi, Pune (including Pimpri Vijaywada
Ulhasnagar and Bassein & Chinchwad) Durg-Bhilai Warngal
Municipalities) Gangtok
Navi Mumbai Surat Gauhati
Gorakhpur
NEW DELHI Vadodara Guntur
Faridabad Varanasi Gwalior
Ghaziabad Hubli-Dharwad
Gurgaon Visakhapatnam Imphal
Noida (including Gajuvaka) Itanagar
Jabalpur
HYDERABAD Jalandhar
BENGALURU Jamnagar
AHMEDABAD Jamshedpur
Gandhinagar Jammu
Jodhpur
Kohima
Kolhapur
Kota

- 28 -