LIC AAO Salary: Structure, Allowances, and Perks

LIC AAO Salary 2025: Life Insurance Corporation of India, is the largest Insurance company of India and securing a permanent government job in LIC is a dream come true for Govt job aspirants. LIC AAO Job profile, attractive salary structure and other benefits make the job of LIC AAO popular among youngsters. The basic pay for LIC AAO posts starts from Rs. 32,795/- per month plus allowances & other benefits.

If you are a LIC AAO aspirant, you must have a clear idea about LIC AAO salary structure, allowances, increments, job profile, joining details, promotion and career growth opportunities. Go through the article to know all about LIC AAO salary, increments, promotions, job profile & more.

LIC AAO Salary 2025

Before getting into the details of LIC AAO salary, let’s have an overview of the exam:

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LIC AAO Salary Structure: Pay Scale & Increments

The LIC AAO pay scale is as under:

This means the initial Basic Pay of LIC AAO is Rs 32,795 per month. This is the initial basic pay when a candidate joins as AAO. Thereafter, there is an annual increment of Rs 1,610 for the next 14 years. At the end of 14 years from joining, the basic pay will be Rs. 55,335/-. LIC AAO salary slip will contain all essential details about the LIC administrative officer salary and the assistant administrative officer LIC salary.

After that, an annual increment of Rs 1,745 is provided upon the existing basic pay for the next 4 years. At the end of 18 years of joining as AAO, the basic pay will be Rs 62,315/- per month.

The same information has been summarised in the table below:

Note that, the minimum LIC AAO salary in hand considering the basic pay and HRA, CCA & other allowances will be approximately Rs 57,000/- per month in ‘A’ Class city which will be mentioned on the LIC AAO salary slip. Besides that, there will also be other benefits as per the govt rules.

In addition to the Basic Pay, there are other allowances that are calculated as a percentage of the Basic Pay based on the location of posting and other parameters. The total LIC AAO salary is the sum of the Basic Pay and these allowances.

LIC AAO Salary Allowances

Apart from the basic pay, the salary structure will also include several allowances. Various allowances that are part of LIC AAO salary are tabulated below:

1. Dearness Allowances (DA)
2. House Rent Allowances (HRA)
3. City Compensatory Allowances (depends on the classification of the city) (CCA)

Check LIC AAO allowance details from below:

Adding all the allowances, the total LIC AAO salary in hand per month is around Rs 57,000/- in A Class cities (minimum salary at the initial stage).

LIC AAO Salary Benefits

Apart from the LIC AAO salary, there are other benefits of LIC AAO post which are as under:

1. Leave Travel Concession (LTC)
2. Special Allowance
3. Gratuity
4. Group Mediclaim
5. Group Insurance
6. Defined Contributory Pension
7. Cash Medical Benefit
8. Accident Insurance
9. Loan for Personal Vehicles
10. Meal Coupon
11. Reimbursement of Cost of Brief Case/ Leather Bags, Mobile Handset
12. Supply of Dailies and Magazines and Tea/ Coffee
13. Mobile Expenses. etc

LIC AAO Job Profile, Roles & Responsibilities

LIC AAO, as the name suggests, involves administrative responsibilities. It is a desk job and the roles and responsibilities will slightly vary depending upon the department they work for. The various departments of LIC are as under:

1. Actuarial
2. Inspection
3. New Business
4. Finance/Accounts
5. Claims
6. Information Technology
7. Marketing / Sales
8. Policy Servicing

In general, LIC AAO has to perform the following duties:

1. LIC AAOs have to help the Administrative Officer or the head of the department in supervising the general functioning of the department.
2. They have to perform any task assigned by the department head.
3. They have to coordinate and communicate with other departments.
4. They have to provide assistance to clients and customers whenever required.
5. They have to research and formulate new schemes.
6. Inspecting existing schemes and policies too is the job of LIC AAOs. They have to look for any error in the existing schemes.
7. LIC AAOs will also have to manage and file claims and settlements.

LIC AAO Promotions & Career Growth

Although there are ample opportunities, promotions in LIC happens at a slow pace. It usually takes 4 to 8 years to get a promotion.

One way to get promotion in LIC is through gaining certain years of experience. From the post of LIC AAO, promotions happen in the following order:

1. Administrative Officer (AO)
2. Assistant Divisional Manager (ADM)
3. Divisional Manager (DM)
4. Senior Divisional Manager (SDM)
5. Zonal Manager and so on.

LIC AAOs are also transferred to other departments depending upon internal requirements as well as the interest of the employees. There, they can get promoted to Assistant Branch Manager (ABM), Branch Manager (BM) and so on.

LIC AAO Joining Details

Check LIC AAO Joining details from below:

1. Before joining as a Probationer, candidates need to give the undertaking to serve LIC for a minimum period of four years from the date of joining (including the probationary period).
2. If the candidate fails to satisfy the condition, he/ she will be liable to pay liquidated damages of Rs.5,00,000/- (5 Lakh Rupees) + GST or any other tax payable shall also be borne by the candidate.
3. A candidate after appointment shall be on probation for a period of one year from the date of joining. The probation period can be extended up to 2 years.

Frequently Asked Questions

Check the frequently asked questions on LIC administrative officer salary from below:

Now that you have a clear picture of what the post of LIC AAO entails – the LIC AAO job description, roles and responsibilities, promotions and career advancements and LIC AAO Salary, you have enough reasons to prepare and give your best shot in the exam.

Go through the LIC AAO syllabus and LIC AAO exam pattern. Finish the whole syllabus in the most effective way and master each and every topic. Also, take LIC AAO mock tests. At Embibe, you can take the mock tests for which will help you strengthen your conceptual knowledge and test-taking skills.

We hope this detailed article on LIC AAO Salary helps you. If you have any query regarding LIC AAO salary, feel to ping us. We will get back to you.