News: Centre to continue offering PF and gratuity to existing Air India employees

Compensation & Benefits

Centre to continue offering PF and gratuity to existing Air India employees

Tata subsidiary Talace Pvt Ltd was the highest bidder for Air India in October and the transaction is expected to close in 1 to 1.5 months.
Centre to continue offering PF and gratuity to existing Air India employees

Even though Air India has undergone privatisation, the Ministry of Civil Aviation informed Rajya Sabha on Monday that the Centre will continue to provide gratuity and PF benefits to the existing employees. 

During a session, questions were raised regarding the benefits provided to employees after the privatisation of Air India. Answering it, Minister of State for Civil Aviation VK Singh noted that according to the share purchase agreement with Talace, the interests and benefits of the employees will be taken care of by the Government. 

Addressing the Upper House, Singh was quoted saying, “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 further added, “Further, with regard to the medical benefits, they are to be made available to the retired and eligible retiring AI beneficiaries by the Government.

From this transaction, the government will get around Rs 2,700 crore cash from Tatas, and they will take over Rs. 15,300 crore debt of Air India. 

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Topics: Compensation & Benefits, #EmployeeExperience

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