Thursday, July 23, 2020

Air India cuts employee allowances up to 50% even as unions protests

National carrier Air India has gone in for a massive cut in employee allowances even as protests from all sections of the employees continue.
As per an office order, this has been done as per the directions of the Ministry of Civil Aviation and following approval from the Board of Directors of Air India Ltd. The rationalisation of allowances will be effective from April 1, 2020 and shall remain in force till further review by the Air India Board.
This is an across the board cut in allowances for all employees, rather than just the pilots and the other flying staff.
The salary and allowances (such as IDA, HRA and other allowances linked to basic pay) will remain unchanged.
The rate of allowances other than DPE allowances will stand reduced by 40% of the approved allowances. These include flying allowance, executive flying allowance, special pay wide body allowance, domestic layover allowance, quick return allowance, high altitude allowance, check allowance, instructor allowance, examiner allowance and additional landing allowance.
Flying allowance to be paid on actual hours flown by an individual pilot in a month. However, as a special case, all pilots available for flying will be paid fixed 20 hours of flying allowance or actuals, whichever is higher in a month, during Quarter 1 and Quarter 2 of financial year 2020-21 on the revised flying allowance rate.
Simulator training hours will be paid on the revised rate of flying allowance. The overtime rate beyond 70 hours in a month shall be 125 per cent of the revised rate of flying allowance, while layover allowance at stations outside India will be payable as per the notified government rates.
Other applicable conditions and penalties will remain the same as per the Ministry of Civil Aviation's letter dated January 1, 2016.
For general category officers, salary and allowances (i.e. basic, IDA and HRA linked to basic pay) will remain unchanged. However, the other allowances will be reduced by 50 per cent.
For general category staff, allowances will be reduced by 30 per cent and same is the case with operators. For the permanent and contractual cabin crew, allowances will be reduced by 20 per cent.
All the above allowances will be paid at the reduced rate on actual flying.
22/07/20 IANS/News Minute
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