Monday, December 20, 2021

Air India employees will continue to get gratuity, PF benefits after divestment

The government on Monday informed the Parliament that the employees of Air India will continue to get the gratuity and provident fund (PF) benefits under the applicable laws even after the divestment of the airline.

 On October 8, the government had announced that Talace Private Limited -- a wholly-owned subsidiary of Tata Sons -- had won the bid to acquire the debt-laden airline. Tata had outbid a consortium led by SpiceJet promoter Ajay Singh by offering Rs 18,000 crore.

 Later on October 25, the government signed the share purchase agreement with Tata Sons for the divestment of Air India.

 In a written reply in Rajya Sabha, Minister of State for Civil Aviation General VK Singh said that the interests of the employees have been taken care of by the government and incorporated in the share purchase agreement signed with the strategic partner.

"In accordance with the applicable laws, the strategic partner, post disinvestment, shall continue to provide gratuity and PF benefits to the employees. The arrangement with the employees and Life Insurance Corporation of India for administrating the existing Air India and Indian Airlines employees Self Contributory Superannuation Pension Fund Trust will continue," he said.

Further, the government will also take care of the medical benefits to be made available to the retired and eligible retiring Air India beneficiaries, he added.


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