State Life Insurance Minimum Rates
GO(P) No. 149/2016/Fin. Dated 04/10/2016
The monthly SLI premium is calculated as 1.5% of total monthly emoluments, rounded up to the next multiple of ₹100.
Total monthly emoluments means the emoluments includes:
- Basic pay (including any stagnation increment absorbed into basic pay)
- Dearness Allowance (DA) at the rate applicable
- Personal pay, if any
- Grade pay, if any
Formula:
- Monthly premium = 1.5% of (Basic pay + DA + Personal pay + Grade pay, if any) Rounded up to the next multiple of ₹100
Illustrations
| Component | Illustration I | Illustration II | Illustration III |
|---|---|---|---|
| Basic pay | ₹25,100 | ₹31,100 | ₹57,900 + ₹7,000 (stagnation increment) = ₹64,900 |
| Grade pay(All types of Grade pay) | — | — | |
| Personal pay | — | — | ₹1,100 |
| DA (7%) | ₹1,757 | ₹2,177 | ₹4,620 |
| Total emoluments | ₹26,857 | ₹33,277 | ₹70,620 |
| 1.5% of total emoluments | ₹402.86 | ₹499.16 | ₹1,059.30 |
| Monthly premium(rounded up to the next multiple of ₹10) | ₹500 | ₹500 |
Note: The DA rate of 7% shown in the illustrations is as applicable at the time of the GO (2021). The actual premium will vary with current DA rates.
Important conditions
- Employees who completed 50 years of age on or after 01/01/2022 are exempt from this revised premium rule.
- If the recalculated premium for an existing policy is higher than what is currently being deducted, the shortfall must be covered by taking an additional policy.
- The minimum premium for any additional SLI policy taken to cover a shortfall is ₹100 per month.