LIC AAO Salary 2023: Allowances, Job Profile, Salary

LIC AAO Salary 2023: The most popular job among aspirants seeking a bright career in the insurance sector is LIC AAO (Life Insurance Corporation of India Limited Assistant Administrative Officer). Many students dream of working for LIC, India’s largest insurance company, as an entry-level AAO.
The basic monthly salary for LIC AAO officers is around INR 53,600. Along with the basic salary, every LIC AAO officer receives commendable benefits such as HRA and DA. Every officer will be paid INR 90,630 per month after 14 years of service.

The LIC AAO Salary and Job Profile will be discussed here in detail. Having the idea of the same gives you more energy to work and helps you boost your confidence in the workplace.

Overview of LIC AAO 2023

The following are the highlights of the LIC AAO 2023 Exam:

Particulars Details
Name of the Organisation LIC
Post Name AAO
LIC AAO Full Form Life Insurance Corporation of India Limited Assistant Administrative Officer
Job Category Central Government job
Job location India
Mode of Application Online
Exam Mode Online
Selection procedure Online Computer Based Test (CBT) and Personal Interview
Official Website https//

Salary Details of LIC AAO

Any candidate hired as a LIC AAO receives the following basic salary and benefits. The table below lists the specific details for each:

Particular Amount
Basic Pay 53,600/-
Special Allowance 4,500/-
DA (29.36%) 17,058/-
HRA (7% for Z Class City) 3,752/-
Transport Allowance 1,960/-
Gross Salary 80,870/-

LIC AAO Salary Deductions

For the LIC AAO recruited candidates, there are some salary deductions in addition to the allowances.

Particular Amount
DCPS 6,933/-
Mediclaim 200/-
GTIS 241/-
New GI 137/-
GIS 3,050/-
Total Deductions 10,561/-
Net Salary of LIC AAO 70,309/-

LIC AAO Salary Structure

AAO’s starting salary is INR 53,600 per month, with a yearly increase of INR 2645 for 14 years. After 14 years, there is an annual increase of INR 2865 for the next four years. AAO’s basic pay will be INR 1,02,090 per month after completing 18 years of service.

The details are given in the table below:

Particulars Amounts
Basic pay at the time of joining INR 53,600 per month
Increment on an annual basis INR 2645 for the next 14 years from the date of joining
Basic pay after 14 years INR 90,630 per month
Annual Increment after 14 years INR 2865 for next 4 years
Basic pay after 18 years INR 1,02,090 per month

Salary Allowances of LIC AAO

Various allowances are provided in addition to the basic salary. The following are the allowances in detail:

  • Allowance for Dearness (DA)
  • Allowance for House Rent (HRA)
  • Allowances for City Compensation (which depends on the category of the city were posted like X – city, Y – city, and Z – city.)
Allowances Benefits
House Rent Allowances (HRA) Employees are frequently given to help with the cost of living, especially in metropolitan areas. It is dependent on the posting area. In the case of big cities, the HRA will be 7%, 8%, or 9% of the basic pay.
City Compensatory Allowances  The CCA is also determined by the city of posting; it could be 3%, 4%, or even 0% of the basic LIC AAO pay structure.
Dearness Allowance (DRA) Every quarter, the DRA is updated based on the Consumer Price Index. The rise or fall in inflation usually has an impact on this. The DRA figures are approximately 40% of the LIC AAO Pay.

Other Perks and Benefits of LIC AAO

Apart from the salary and allowance, the LIC AAO receives a number of other benefits, which are listed below:

  • Loan facility for personal vehicle
  • Group Insurance
  • Accidental Insurance
  • Special Allowance
  • Meal Coupon
  • Medical Facility
  • Leave Travel Concession
  • Mobile and other daily requirement expenses, etc.

Job Profile of LIC AAO

A LIC AAO’s job is essentially a desk job. It is primarily concerned with LIC’s administrative work. If you have prior knowledge of the job roles and responsibilities of a LIC AAO, you will be able to work more confidently if you pass the selection phases. There is a long list of tasks that the employee must complete efficiently. They will be responsible for the following tasks:

  • Developing new schemes and evaluating existing and new policies.
  • Supervising and filing customer claims and settlements.
  • Providing assistance and coordinating with the appropriate departments.
  • Maintaining friendly relationships with customers, interacting with them, and providing answers to their questions.
  • Completing tasks as assigned by higher departmental authorities on time.
  • Examination of existing facts and identification of factual errors.

Probation Period and Posting Zones of LIC AAO

  • A newly hired employee is placed on probation for a period of one year from the date of hire. The period can be extended for up to two years depending on the candidate’s performance.
  • Candidates must have served in the LIC for a minimum of four years, including the probation period.
  • The LIC has the most branches in rural areas. After being hired, candidates are placed in rural areas for at least three years, away from their homes.

Career Growth of LIC AAO

Promotion at LIC is not very proactive. To be eligible for the promotion, however, you must serve at least 5 to 7 years.

  1. Candidates can be promoted to Administrative Officer (AO), Assistant Divisional Manager (ADM), Divisional Manager, Senior Division Manager, Zonal Manager, and so on after gaining sufficient experience.
  2. Depending on the candidates’ performance and efficiency, there is also the possibility of promotion to other departments. The following are some of the major branches:
  • Inspection
  • Legal
  • Systems
  • Finance Accounts
  • Information Technology
  • New Business
  • Actuarial
  • Claims
  • Marketing Sales
  • Policy Servicing

Frequently Asked Questions

Ques. What benefits does the LIC AAO receive?

Ans. Dearness allowance, House rent allowance, and city compensatory allowance are the three main allowances provided to LIC AAO.

Ques. Which positions are available after promotion from LIC AAO?

Ans. Administrative Officer, Assistant Divisional Manager, Divisional Manager, Divisional Manager, Senior Divisional Manager, Zonal Manager, Branch Manager, and other positions are available after promotion from AAO. Promotion is determined by the department and the LIC rules.

Ques. What are the requirements for promotion to LIC AAO?

Ans. After 4 to 8 years of service, a promotion is offered. According to the department’s rules, the promotion is guaranteed.

Ques. What increments does LIC AAO receive?

Ans. An annual increment of INR 2645 is provided to LIC AAO for the next 14 years after joining. For the next four years, an annual increment of INR 2865 is provided after 14 years.

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