Saturday, January 29, 2022

EPFO Onboards Air India, Employees To Get Pension, Insurance Cover

New Delhi: Employees' Provident Fund Organisation (EPFO), has taken on board Air India Limited for providing social security benefits like provident fund (PF), pension and insurance to its employees. It has received contributions for around 7,453 employees for December 2021.

This step was a part of the overall privatisation of the national carrier, as its employees have now come under the ambit of the Employees' Provident Fund & Miscellaneous Provisions Act 1952, with effect from December 1, 2021.

According to the gazette notification, the employer and majority of the employees have agreed to shift to provisions under the EPFO.

Prior to this shift, Air India employees were contributing in the provident fund and the money was channelised into two funds AIEPF (Air India Employees Provident Fund) and IAEPF (Indian Airlines Employees Provident Fund) with a total investment of around ₹ 4,500 crore. These two funds were recognized under Provident Fund Act 1925.

With this gazette notification, the airline has completed the process of shifting employees from the old PF to the new system.

Under the PF Act, 1925, benefit of provident fund was available but there was no statutory pension or insurance scheme. The employees used to participate in self-contributory annuity-based pension scheme.

A guaranteed minimum pension of ₹ 1,000 per month will be available to employees and pensions to family and dependents in case of death of employee.

An assured insurance benefit in case of death of member will be available in the range of minimum ₹ 2.50 lakh and maximum 7 lakh.

No premium is charged to the EPFO covered employees for this benefit.

29/01/22 NDTV

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