Air India to clear salary dues before Diwali

Air India has decided to clear all salary arrears of its employees for September and October this year before Diwali (13 November). The loss-making national carrier would also pay productivity-linked incentive (PLI) for the two months by the month-end.

The airline will incur an expenditure of Rs230 crore on payment of salary and Rs200 crore on payment of PLI.

The balance PLI for non-licensed category employees for the months of May and June 2012 involving an expenditure of Rs60 crore will be paid by the end of November 2012. PLI has been abolished with effect from 1 July 2012.

This would cost the airline a total of around Rs500 crore, an airline official said today.

''Air India has decided to clear payment of salary to all its employees for the months of September and October 2012 before Diwali. It will also make up-to-date payment of PLI for all licensed category employees for the months of May and June,'' the official said.

Air India's decision came after civil aviation minister Ajit Singh expressed concern over delay in salaries and asked Air India to make all efforts in future to make up-to-date payment of salary to the employees.