The centre is understood to have approved a wage hike for the employees of the Life Insurance Corporation of India (LIC), according to a Times of India report. The government has finalised a wage hike of 15-16% and a five-day week policy.

Although the wage revision in the insurance sector involves negotiations with unions, the final announcement is made by the centre through a gazette notification.

The wage revision has been due since August, 2017. 

Wages are being revised at a time when the government is eyeing a massive IPO (initial public offering) for the insurance behemoth. Union Finance Minister Nirmala Sitharaman had made the announcement while presenting this year’s Union Budget in the Parliament in February. 

The centre has proposed to offer LIC’s shares at a discount of 10% to company’s employees.