The Employees’ Provident Fund Organisation on Saturday said it had brought Air India employees under its umbrella, giving social security coverage to 7,453 employees.
The airline was taken over by Tata Sons on Thursday, completing the government’s disinvestment of the carrier. The EPFO said Air India Ltd. had applied to be covered under the Employees’ Provident Fund and Miscellaneous Provision Act, 1952. The application had been accepted on January 13 with effect from December 1, 2021.
“The social security benefits will be provided to around 7,453 employees for whom contributions have been filed by Air India with EPFO for December 2021,” the EPFO said.
These employees would now receive an additional 2% employer’s contribution at 12% of their wages. Earlier, they were covered under the PF Act, 1925, giving them 10% contribution by the employer in addition to the employee’s 10%.
“EPF Scheme 1952, EPS 1995 and EDLI 1976 will now be applicable to the employees. A guaranteed minimum pension of Rs 1,000 will be available to employees and pensions to family and dependents in case of death of employee. An assured insurance benefit in case of death of member will be available in the range of minimum ₹2.50 lakh and maximum ₹7 lakh. No premium is charged to the EPFO covered employees for this benefit,” the EPFO said.
It said the employees of Air India did have the benefit of PF but not a statutory pension 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,” the EPFO said.