Air India cuts monthly allowance of employees up to 50%

The aviation zone has been notably affected due to the travel cutback forced in India and other countries due to the ongoing coronavirus pandemic. The latest reports state that Air India will be cutting employee allowances by 20 percent to 50 percent, will be effective from April 1, 2020, and will remain in force till further review by the Air India Board.

Indian Commercial Pilots’ Association in a statement said, “Any unilateral change by Air India from agreed-upon wage settlement would be illegal and will not be in the interest of our National Carrier at this crucial juncture. Such a situation has the potential to flare to an unprecedented magnitude.”

The statement further said that the basic salary and allowances linked to it like industrial dearness allowance (IDA) and house rent allowance (HRA) will remain the same.

The said 11 types of allowances:  including flying allowance, special pay, wide-body allowance, domestic layover allowance, and executive flying allowance – for pilots would stand decreased by 40 percent.

Other allowances for others like general category officers and staff will be reduced by 30-50%. Cabin crew will have some allowances cut by 20%, while various allowances for pilots will be reduced by 40% percent

“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 2020-’21 on revised flying allowance rate, for employees (both permanent and fixed-term contract) with gross salary up to Rs 25,000 there will be no reduction in salary,” said the airline’s order.

Stay tuned to The Live Mirror for more updates.

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