New Delhi: The Tata-owned Air India employees will now be covered under Employees’ Provident Fund Organisation instead of the usual Provident Fund that was provided by the government.
Clarifying air on the status of social security over of the earlier state-owned Air India employees who have now become Tata employees, the Union Ministry of Labour and Employment said the EPFO has onboarded the airline for social security coverage to provide the social security benefits to its employees. The approval for this was granted on January 13 after Air India Ltd applied for voluntarily cover under the EPF and MP Act 1952.
The social security benefits will be provided to around 7,453 employees for whom contributions have been filed by Air India with EPFO for the month of December 2021. These Employees of Air India now will now receive extra 2% employer’s contributions in their Provident Fund accounts at 12% of their wages. Earlie,r they were covered under the PF Act of 1925, where the contributions to the Provident Fund was at 10% by employer and 10% by employee.
Besides, the EPF Scheme 1952, EPS 1995 and EDLI 1976 will now be applicable to the employees and a guaranteed minimum pension of Rs 1,000 will be available to employees and pensions to the family and dependents in case of death of the employee.
In addition, an assured insurance benefit in case of death of member will be available in the range of minimum Rs 2.50 lakh and maximum 7 Lakhs. No premium is charged to the EPFO covered employees for this benefit.
Since 1952-53, Air India and Indian Airlines were the two separate companies that were covered under PF Act 1925. In 2007, both the companies merged into one company — Air India Ltd. Under the PF Act 1925, benefit of Provident Fund was available but there was no statutory pension scheme or insurance Scheme. The employees used to participate in self-contributory annuity-based pension scheme. Based on the scheme parameters, the accumulations used to be paid to the employees. There was no minimum pension guarantee and no extra benefit in case of death of a member.