Ravi S Singh
New Delhi, January 29th
The Employees Provident Fund Organization (EPFO) admits Air India in its fold for providing benefits in the form of social security coverage to its employees.
In fact, this would allow Air India to take advantage of their employees’ social security needs.
Air India Ltd applied for inclusion in the scheme under the EPF & MP Act 1952, which has been ratified by the EPFO with effect from 1 December 2021.
The social security benefits will be provided to around 7,453 employees for whom Air India has contributed to the EPFO for the month of December 2021.
Under the new exemption, these Air India employees will receive 2 percent additional employer contributions on their Provident Fund Accounts to 12 percent of their salary.
Previously, they were covered by the PF Act of 1925, where the contributions to the Provident Fund were 10 percent of the employer and 10 percent of the employee,
The EPF scheme 1952, EPS 1995 and EDLI 1976 will now apply to employees.
A guaranteed minimum pension of Rs 1,000 will be available for employees and pensions for family and relatives in the event of an employee’s death.
A secured insurance benefit in the event of a member’s death will be available in the range of a minimum of Rs 2.50 lakh and a maximum of Rs 7 lakh. No premium is charged to the EPFO-covered employees for this service.
Since 1952-53, Air India and Indian Airlines were the two separate carriers covered by the 1925 PF Act.
The companies merged under the name Air India Ltd in 2007. Under the PF Act 1925, the benefit from the Provident Fund was available, but there was no statutory pension scheme or insurance scheme.
Employees previously participated in a self-paying annuity-based pension scheme. Based on the scheme’s parameters, the accumulations were previously paid to the employees. There was no minimum pension guarantee and no additional benefit in the event of a member’s death.