LIC AAO Salary 2025: The Life Insurance Corporation of India (LIC) recruits eligible candidates to the posts of AAO, offering them an impressive salary package with benefits. The LIC AAO job profile includes both administrative and customer service duties such as policy formulation, claim processing, and interdepartmental coordination. The attractive salary and multifaceted job profile make LIC AAO one of the most prestigious government jobs in the insurance sector. Check details of LIC AAO Salary and Job Profile 2025 in this article.
LIC AAO Salary 2025
The salary for Assistant Administrative Officer (AAO) starts at Rs. 88,635 per month, and it increases with timely appraisals. But this is not the in-hand salary; this is the basic pay. A number of perks and deductions are added to this salary. The final LIC AAO Salary makes it to Rs. 1,07,222. Candidates must understand the LIC AAO salary structure, job profile, perks, and deductions to get complete details of the LIC Assistant Administrative Officer Salary. If you are aiming for a stable and rewarding career in the insurance sector, the LIC AAO role is an excellent choice. Check the detailed LIC AAO salary in this article.
LIC AAO Salary Structure 2025
The LIC AAO salary structure has been revised to provide a better pay scale, along with a range of allowances and perks. The salary structure for LIC AAOs in 2025 stands at Rs. 88,635 to Rs. 1,69,025, with annual increments based on performance and seniority. Check the detailed LIC AAO Salary Structure 2025 in the table below.
| Components | Amount (Rs.) |
|---|
| Basic Pay | 88,635 |
| DA @ 15.38% | 13,635.39 |
| Cadre Special Allowance | 8,900 |
| HRA | 6,204.45 |
| Transport Allowance | 3,300 |
| Gross Total Income | 1,20,674.84 |
| Deductions |
| Income Tax | 10,200 |
| New GI Scheme | 137.42 |
| Professional Tax | 200 |
| GIS Premium | 2,915 |
| Total Deductions | 13,452.42 |
| Net Pay | 1,07,222.42 |
LIC AAO In Hand Salary
An LIC AAO's gross monthly income is approximately Rs. 1,20,674, which includes basic pay and allowances like DA, HRA, and transport allowance. After deductions for income tax, professional tax, and other schemes, the net LIC AAO In-hand salary comes out to be around Rs. 1,07,222. This substantial amount reflects the various components added to the basic pay and the mandatory subtractions. Therefore, the employee receives a significant portion of their total earnings as net pay.
Attempt Free LIC AAO Mock Test
LIC AAO Pay Scale 2025
The Life Insurance Corporation of India (LIC) offers a competitive salary structure for the Assistant Administrative Officer (AAO) position. Following the recent LIC Wage Revision Notification by the Ministry of Finance, the new pay scale for LIC AAOs is set at Rs. 88,635 - Rs. 1,69,025. This revised structure provides for annual increments of Rs. 4,385 for the first 14 years and Rs. 4,750 for the subsequent 4 years. Therefore, the LIC AAO Pay Scale comes to be - Rs. 88,635-4,385(14)-1,50,025-4,750(4)-1,69,025. This updated pay scale reflects the organization's commitment to providing a rewarding career path for its AAOs.
LIC AAO Salary Slip 2025
An LIC AAO's salary slip clearly shows their basic pay along with added allowances like DA and HRA, totaling the gross income. It also contains the deductions for taxes and schemes. The final figure displayed is the net pay, the actual amount received by the employee after all subtractions. This slip provides a concise summary of their monthly earnings. Check the LIC AAO Salary Slip below.
Download LIC AAO Salary Slip
LIC AAO Perks
As mentioned above, the LIC AAO Salary includes a number of perks. Perks such as dearness allowance, travel allowance, leave travel concession, and a number of other additions too. These allowances are divided location-wise. Check the details of the LIC AAO Perks in the table below.
| Perk/Allowance | Eligibility/Criteria | Benefit/Rate |
|---|
| House Rent Allowance (HRA) | Metro cities (population ≥ 45 lakh) | 10% of basic pay, capped at ₹13,000/month |
| Large cities (12–45 lakh population) | 8% of basic pay, up to ₹11,000/month |
| Other locations | 7% of basic pay, with a limit of ₹10,500/month |
| City Compensatory Allowance | Metro cities (population ≥ 45 lakh) | 3% of basic pay, up to ₹3,300/month |
| Tier-1 cities (12–45 lakh population) | 2.5% of basic pay, capped at ₹3,100/month |
| Tier-2 cities (5–12 lakh population) | 2% of basic pay, maximum of ₹2,400/month |
| Hill Area Allowance | Locations ≥ 1,500 meters above sea level | 2.5% of basic pay, up to ₹2,055/month |
| Locations between 1,000 and 1,000–1,500 meters elevation | 2% of basic pay, max ₹1,650/month |
| Remote hilly access (≥750 meters with 1,000m+ hill access) | 2% of basic pay, up to ₹1,650/month |
| Additional Benefits | Applicable to all AAOs | Pension (Defined Contribution), Gratuity, LTC, Medical Reimbursements |
| Group Insurance, Personal Accident Cover |
| Vehicle Loan Facility, Meal Coupons, Magazine/Daily Supply |
| Reimbursement for Mobile & Official Items |
LIC AAO Deductions
Along with the additions, there are certain deductions that are subtracted from the gross salary to determine the net in-hand salary received by a LIC AAO. These generally include taxes and some schemes. Check the details of the LIC AAO deduction in the table below.
| Deduction Type | Amount (Rs) |
|---|
| Income Tax | 10,200.00 |
| New GI Scheme | 137.42 |
| Professional Tax | 200.00 |
| GIS Premium | 2,915.00 |
| Total Deductions | 13,452.42 |
LIC AAO Job Profile
An LIC Assistant Administrative Officer (AAO) handles both administrative and customer-facing responsibilities. The role includes managing policies, processing claims, coordinating between departments, and resolving customer queries. It's a balanced role that demands efficiency, communication skills, and attention to detail. Check details of the LIC AAO job profile below:
- Drafting and updating insurance policies
- Verifying and settling customer claims
- Ensuring inter-departmental coordination
- Addressing customer issues and queries
- Reviewing documents and maintaining accuracy
Enroll in LIC AAO Online Coaching
LIC AAO Increments
The LIC AAO pay scale offers a progressive growth structure. Starting at a basic pay of Rs. 88,635, officers receive an annual increment of Rs. 4,385 for the first 14 years, reaching Rs. 1,50,025. This is followed by an annual increment of Rs. 4,750 for the next four years, culminating in a basic pay of Rs. 1,69,025. This structured increment system ensures increasing financial rewards throughout an LIC AAO's career.
| Year(s) | Starting Basic Pay (Rs.) | Annual Increment (Rs.) | Final Basic Pay (Rs.) at the end of the period |
|---|
| 1-14 | 88,635 | 4,385 | 1,50,025 (after 14 increments) |
| 15-18 | 1,50,025 | 4,750 | 1,69,025 (after 4 increments) |
| 19 onwards | 1,69,025 | - | Continues at this level |
