Provision for employee benefits: During the year ended 31/03/2023

I reproduce below the text of para 20 on  page 457 of the LIC Annual Report for the year 2022-23:

"20)  Provision for employee benefits: During the year ended 31/03/2023, an estimated provision of ₹ 20,18,118.92 lakhs has been made for employee retirement benefits, which includes additional provision  of ₹ 11,54,375.87 lakhs made due to the wage revision which became due with effect from 01/08/2022."

This indicates that an estimated provision of Rs 11543.76 Cr has been made by LIC in 2022-23 for additional  employee retirement benefits .This means this entire provision is towards payment of retirement benefits of employees including pension for employees payable after 1/8/2022 after wage revision besides Rs 8637.43 Cr excluding wage revision. Thus the provision for post -revision retirement benefits exceed the pre- revision retirement benefits for employees. 

C H Mahadevan