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AI slashes employee allowances up to 50%

New Delhi: National carrier Air India has gone in for a massive cut in employee allowances even as protests from all sections of the employees continue.

As per an office order, this has been done as per the directions of the Ministry of Civil Aviation and following approval from the Board of Directors of Air India Limited. The rationalisation of allowances will be effective from April 1, 2020, and shall remain in force till further review by the Air India Board. This is an across the board cut in allowances for all employees, rather than just the pilots and the other flying staff.

The salary and allowances (such as LDA, HRA and other allowances linked to basic pay) will remain unchanged.

The rate of allowances other than DPE allowances will stand reduced by 40 per cent of the approved allowances. These include flying allowance, executive flying allowance, special pay wide-body allowance, domestic layover allowance, quick return allowance, high altitude allowance, check allowance, instructor allowance, examiner allowance and additional landing allowance.

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