Reportedly air india has reduced monthly allowances of its employees who have a monthly gross salary of more than Rs 25,000 by up to 50 percent, according to an internal order of the company. The order, dated July 22, said basic salary and allowances linked to it like industrial dearness allowance (IDA) and house rent allowance (HRA) will remain unchanged. However, for "general category officers", all other allowances except the aforementioned ones would be reduced by 50 percent, said the order.

 

"General category staff" and "operators" would get all other allowances decreased by 30 percent, the order mentioned. Cabin crew members would see their all other allowances like check allowance, flying allowance and quick return allowance reduced by 20 percent, the order said. The aviation sector has been significantly impacted due to the travel restrictions imposed in india and other countries in view of the coronavirus pandemic.

 

All airlines in india have taken cost-cutting measures such as pay cuts, leave without pay (LWP) and firing of employees in order to conserve cash. The air india order said 11 types of allowances including flying allowance, special pay, wide-body allowance, domestic layover allowance and executive flying allowance for pilots would stand reduced by 40 percent. For employees (both permanent and fixed-term contract) with gross salary up to Rs.25,000 there will be no reduction in salary," it noted. All fixed-term contractual executives and staff other than pilots and cabin crew members will see their other allowances reduced by 50 percent and 30 percent, respectively.

 

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