The Employees Provident Fund Organisation (EPFO) has onboarded Air India for social security benefits and has received contributions for 7,453 employees so far, the retirement fund body said on 29 January.
The announcement comes two days after the Tata Group took over the debt-ridden airline from the union government. Air India Ltd had applied for EPFO coverage, which has been allowed, the EPFO said.
“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 are entitled to several benefits,” EPFO said.
It said the employees will receive an extra 2% of the employer’s contributions in their EPF at 12% of their wages. Earlier they were covered under the PF Act of 1925, where the contributions to the Provident Fund was at 10% by the employer and 10% by the employee,
EPF Scheme 1952, EPS 1995, and EDLI 1976 will now be applicable to the employees. Besides, the guaranteed minimum pension, EPFO will also provide pensions to families and dependents in case of the death of a subscriber.
“An assured insurance benefit in case of death of a 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,” it added. To be sure, these benefits are for all the EPFO subscribers including Air India employees. EPFO is governed by a separate act named EPF & Miscellaneous Provision Act 1952.
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, the benefit of Provident Fund was available but there was no statutory pension scheme or insurance Scheme. The employees used to participate in the self-contributory annuity-based pension schemes. Based on the scheme parameters, the accumulations used to be paid to the employees.
“The formalities have been completed. The Air India disinvestment process is closed,” The shares have been transferred to Talace Pvt Ltd, which is the new owner of Air India," Tuhin Kant Pandey, Secretary, Department of Investment & Public Asset Management (DIPAM) had said earlier this week.