LIC AAO Salary: Check Pay Scale, Allowances & Other Benefits

Exam On - 8 Nov '25

Updated on Feb 13, 2023 10:54 IST

By Rupali Pruthi, Deputy Manager - Editorial

LIC AAO salary was notified in the LIC AAO 2020 notification. The Life Insurance Corporation (LIC) is one of the most profitable corporations of the Government of India. LIC Assistant Administrative Officer (AAO) is one of the most satisfying jobs in the country. It is the reason behind the competition in the LIC AAO exam.

LIC AAO salary is one of the motivating factors for the candidates preparing for the LIC AAO exam 2020. LIC provides a decent salary to its officers so they can easily enjoy the work and remain stress-free.

See here: LIC AAO Syllabus

LIC AAO salary includes various allowances which make the salary at par with various other officers serving in various departments. LIC AAO salary also includes various perks exclusive to it such as meal coupons, reimbursement of the cost of Briefcase/leather bags, mobile handset, the supply of dailies and magazines and tea/coffee, mobile expenses, etc. These components make the LIC AAO salary most lucrative among others.

See here: LIC AAO exam pattern

The LIC AAO Salary as defined in the official LIC AAO notification is given below.

“Basic pay of Rs. 32795/- per month in the scale of Rs. 32795- 1610(14) –55335– 1745(4) –62315 and other admissible allowances as per rules. Total emoluments at the minimum of the scale inclusive of House Rent Allowance, City Compensatory Allowance etc wherever admissible depending upon the classification of the city will be approximately Rs 57,000/- per month in ‘A’ Class city. Other benefits are Defined Contributory Pension, Gratuity, LTC, Cash Medical Benefit, Group Medi-claim, Group Personal Accident Insurance, Group Insurance, Vehicle Loan (2-wheeler/4 wheeler) as per rules.”

On posting in a Class A city, the minimum salary of the LIC AAO will be approximately 57000.

Now we discuss the components of the LIC AAO salary

Basic Pay

Increment

Allowances

Rs 32795

Rs 1610 for the first 14 years of Service

DA – appr. 40%

HRA – 9%,8%.7%

CCA- 4%, 3%

After 14 years – Rs 55,335

Rs 1745 for the next 4 years

As per the new guidelines of that time

Final Basic Pay(till superannuation) – Rs 62315

As per the new guidelines of that time

Table of content

LIC AAO Salary – Dearness Allowance
LIC AAO Salary – House Rent Allowance
LIC AAO Salary – City Compensatory Allowance
LIC AAO Salary - Other Allowances

LIC AAO Salary – Dearness Allowance

Dearness Allowance is the largest component of the LIC AAO salary package. With LIC AAO salary, the DA is linked with the Consumer Price Index (CPI). So this makes this component variable and it increases with the CPI each year. The approximate value of the DA is 40 to 45% of the basic salary.

LIC AAO Salary – House Rent Allowance

House Rent Allowance HRA is the second-largest component of the LIC AAO salary. It is a variable component fixed as per the pace of posting. The HRA varies from 7 to 9% of the basic salary based on the place of posting.

LIC AAO Salary – City Compensatory Allowance

City Compensatory Allowance (CCA) is another variable component of the LIC AAO salary package. It also varies with the city of posting and differs with the classification of cities. The cities are classified by the Government of India and the CCA is defined as per the city of posting.

LIC AAO Salary - Other Allowances

In addition to the above, the following allowances are also admissible in the LIC AAO salary package.

Leave Travel Concession (LTC)
Special Allowance
Gratuity
Group Mediclaim
Group Insurance
Defined Contributory Pension
Cash Medical Benefit
Group Personal Accident Insurance
Loan for Personal Vehicles, etc.

The LIC AAO Salary and allowances are not fixed and they all are subject to revision every ten years when the pay commission provides its recommendations for the government and Public Sector Units.