The Life Insurance Corporation of India (LIC) conducts recruitment for the Assistant Administrative Officer (AAO) post, offering an attractive salary and multiple benefits. The LIC AAO Salary 2025 includes basic pay, allowances, perks, and career growth opportunities, making it one of the most sought-after jobs in the insurance sector.
If you are preparing for LIC AAO 2025, knowing the complete salary structure is essential. This article provides detailed insights into LIC AAO Salary 2025, including in-hand salary, perks, deductions, and salary expectations after the 8th Pay Commission.
LIC AAO Salary 2025: Overview
The LIC AAO salary is structured based on the 7th Pay Commission. The starting basic pay for LIC AAO is ₹53,600 per month. Over the years, the salary increases due to regular increments. Along with the basic salary, employees receive house rent allowance (HRA), dearness allowance (DA), transport allowance (TA), medical benefits, and other perks.
Here’s a quick look at the LIC AAO Salary 2025:
| Component | Amount (₹) |
|---|---|
| Basic Pay | 53,600 |
| Maximum Pay | 1,02,090 |
| Dearness Allowance (DA) | 32,210 |
| House Rent Allowance (HRA) | 5,360 |
| Transport Allowance (TA) | 1,960 |
| City Compensatory Allowance (CCA) | 1,608 |
| Gross Salary | 99,228 |
| Deductions (PF, Tax, etc.) | 10,561 |
| Net In-Hand Salary | 88,667 |
LIC AAO Pay Scale 2025
The LIC AAO pay scale follows this structure:
📌 Pay Scale: ₹53,600- 2645(14) –90630– 2865(4) –1,02,090
- The starting basic pay is ₹53,600 per month.
- For the first 14 years, an annual increment of ₹2,645 is added.
- The basic pay reaches ₹90,630 after 14 years.
- After 4 more years, an additional ₹2,865 increment is applied.
- The maximum basic pay is ₹1,02,090 after 18 years.
This structured growth ensures financial stability and career progression.
LIC AAO Salary After 8th Pay Commission (Expected)
The 8th Pay Commission is expected to increase government salaries, including LIC AAO salaries. Based on past trends, the estimated LIC AAO Salary after 8th Pay Commission could be:
| Component | Expected Amount (₹) |
|---|---|
| Basic Pay | 65,000 – 70,000 |
| Maximum Pay | 1,25,000 – 1,30,000 |
| Dearness Allowance (DA) | 40,000 |
| House Rent Allowance (HRA) | 7,000 |
| Transport Allowance (TA) | 3,000 |
| City Compensatory Allowance (CCA) | 2,000 |
| Gross Salary (Expected) | 1,20,000 – 1,30,000 |
| In-Hand Salary (Expected) | 1,05,000 – 1,15,000 |
The LIC AAO Salary after the 8th Pay Commission is likely to see an increase of 20-25%, making it even more attractive.
LIC AAO Salary Deductions
The LIC AAO Salary 2025 also includes deductions, which slightly reduce the take-home salary.
| Deductions | Amount (₹) |
|---|---|
| Provident Fund (PF) | 6,933 |
| GIS (Group Insurance Scheme) | 3,050 |
| GTIS (Group Term Insurance Scheme) | 241 |
| Mediclaim | 200 |
| Income Tax | Variable |
| Total Deductions | 10,561 |
After these deductions, the in-hand salary for LIC AAO is ₹88,667 per month.
LIC AAO Perks & Allowances 2025
Apart from the salary, LIC AAO employees enjoy multiple allowances and benefits:
- Dearness Allowance (DA) – 40% of basic pay (varies with inflation).
- House Rent Allowance (HRA) – 8% to 24% of basic pay, based on city classification.
- Transport Allowance (TA) – Compensation for travel expenses.
- City Compensatory Allowance (CCA) – Extra allowance for employees in metro cities.
- Medical Benefits – Health coverage for employees and family members.
- Leave Travel Concession (LTC) – Allowance for travel during leave.
- Pension Scheme – Employees are entitled to a Defined Contributory Pension.
- Gratuity – A lump sum paid at retirement.
- Insurance Cover – Group personal accident insurance.
- Loan Benefits – Discounted rates for home, car, and personal loans.
These benefits make LIC AAO one of the most rewarding government jobs.
LIC AAO Career Growth & Promotion
The career growth in LIC AAO is excellent, with opportunities for promotions based on performance, experience, and internal exams.
LIC AAO Promotion Hierarchy
- Assistant Administrative Officer (AAO)
- Administrative Officer (AO)
- Assistant Divisional Manager (ADM)
- Divisional Manager (DM)
- Senior Divisional Manager (SDM)
- Zonal Manager (ZM)
- Executive Director (ED)
With regular promotions, LIC AAOs can reach higher administrative positions within the organization.
LIC AAO Job Profile 2025
The job responsibilities of a LIC AAO include:
- Policy Management – Handling insurance policies and claims.
- Finance & Accounting – Managing LIC’s financial transactions.
- Customer Service – Addressing policyholder queries.
- Claims Processing – Reviewing and approving insurance claims.
- Supervising Assistants – Managing junior staff and administrative work.
- Marketing & Sales Support – Promoting LIC insurance products.
- Risk Assessment – Evaluating policyholder risks.
The job profile is a mix of administrative and customer service roles, making it a stable and secure career choice.
Also Read:- Canara Bank Clerk Monthly Salary in 2025, In Hand Salary after 8th Pay Commission
FAQs on LIC AAO Salary 2025
The in-hand salary of LIC AAO in 2025 is ₹88,667 per month, after deductions.
The basic pay of LIC AAO starts at ₹53,600 and increases up to ₹1,02,090 over time.
Yes, after the 8th Pay Commission, the expected LIC AAO salary will be ₹1,05,000 – ₹1,15,000 per month.
The allowances include DA, HRA, TA, CCA, medical benefits, insurance, and travel allowances.
LIC AAOs can be promoted to AO, ADM, DM, SDM, ZM, and ED based on performance.
Conclusion
The LIC AAO Salary 2025 is highly attractive, offering a competitive pay scale, perks, and career stability. With a starting salary of ₹88,667 per month, along with allowances and benefits, LIC AAO is one of the best career options in the insurance sector.
Additionally, the 8th Pay Commission will further boost the salary, making it a high-paying government job. If you are planning to apply for LIC AAO 2025, this job provides financial security, professional growth, and job satisfaction.