AAI unveils voluntary retirement scheme

Mumbai: Airports Authority of India (AAI) has come out with a voluntary retirement scheme for its employees in the Mumbai and Delhi airports, who will be displaced as a result of privatisation of these two airports.
The VRS package, in line with the standard public sector unit format, will be applicable to employees who have worked with AAI, including the Directorate-General Of Civil Aviation (DGCA), Civil Aviation Department (CAD) and Centre Public Works Department (CPWD) for a minimum of 15 years, the AAI told its employees in its letter dated March 9, a copy of which is with Business Line. The proposed VRS will cost the Government around Rs 1,000 crore.
The average compensation will be around Rs 25-35 lakh depending on seniority and the number of years with AAI. The benefits will include 45 days salary of each completed year of service or salary for the number of months of service left, whichever is less.
In addition, they will receive a certain percentage of basic pay, drawn on the date of voluntary retirement for a period equivalent to the service rendered or till the notional date of superannuation or 10 years whichever is least, the letter said. This will be broadly classified into three categories, employees above 58 years will receive 100 per cent of their basic pay, where for 50-58 years, it will be 80 per cent of basic pay and below 50 years it will be 60 per cent.
“The benefits will be calculated on basic pay plus dearness pay and dearness allowance for ex-gratia and basic pay and dearness pay for additional monthly benefit,” said the letter.
For instance, a 46-year-old manager who has worked with AAI for 20 years will get 30 months pay plus 60 per cent of the basic pay for the next 14 years.
According to the letter, the compensation under VRS will be in addition to the terminal benefits, encashment of un-availed casual leave, transfer benefits for family and medical facilities as applicable under the Post Retirement Medical Benefit Scheme.
14/03/09 Varada Bhat/Business Line

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Categories: Airports Mar 2009