Air India Slashes 50 % Monthly Allowance of Its Employees

salary of employees during covid

Restrictions on traveling knowing during the global pandemic situation had a tremendous impact on the salaries of employees during COVID. Now the employees will have to pay for it. Air India stated on Wednesday, July 22, 2020, while issuing orders after a meeting with the board of directors that – “Because of the coronavirus, we are going to cut off the monthly allowances of employees (both permanent and fixed-term contract) by up to 50 percent who have a monthly gross salary of more than Rs 25,000, according to an internal order of the company”.

The order, dated July 22, also said basic salary and allowances linked thereto like industrial dearness allowance (IDA) and house rent allowance (HRA) will remain unchanged.

Important points about basic salary of employees during covid:

  • All other allowances – except the aforementioned ones – would be reduced by 50 percent, for General Category Officers as per the orders.
  • “General Category Staff” and “Operators” would get all other allowances decreased by 30 percent.
  • Also the other allowances like check allowance, flying allowance, and quick return allowance reduced by 20 percent for Cabin crew members.
  • There are 11 different sorts of allowances listed under an order issued – including flying allowance, special pay, wide-body allowance, domestic layover allowance, and executive flying allowance – for pilots would be reduced by 40 percent.
  • Now the flying allowances would be paid on actual hours flown by a private pilot during a month. “However, as a special case, all pilots available for flying are going to be paid fixed 20 hours of flying allowance or actuals, whichever is higher during a month.
  • This reduction of other allowances is going to be effective from April 1 this year.

Moreover, during this global pandemic situation attacked deeply to the aviation sector with the travel restrictions imposed in India and other countries. All airlines in India have taken cost-cutting measures like pay cuts, leave without pay (LWP), and firing of employees to conserve cash. Employees are suffering from a direct slash down in their basic salary in corona period.

With the immense decision of companies firing and cutting off salaries makes them boredom and demotivated to work. Many employees have become jobless after the orders passed by the traveling companies during the lockdown. Many others are not even earning a basic salary in corona period.

Also, The airline issued an indoor order on July 14 asking its departmental heads and regional directors to spot employees. Supported various factors like efficiency, health, and redundancy, who are going to be sent on compulsory LWP for up to 5 years.