EPFO has onboarded Air India and its employees will now get pension and insurance coverNew Delhi: Employees' Provident Fund Organisation (EPFO), has taken on board Air India Limited for offering social security advantages like provident fund (PF), pension and insurance to its employees.
It has received contributions for around 7,453 staff members for December 2021.
This action was a part of the total privatisation of the national carrier, as its employees have now come under the ambit of the Staff Members' Provident Fund - & Miscellaneous Provisions Act 1952, with result from December 1, 2021.
According to the gazette alert, the company and bulk of the employees have actually accepted move to arrangements under the EPFO.Prior to this shift, Air India employees were contributing in the provident fund and the money was channelised into 2 funds AIEPF (Air India Personnel Provident Fund) and IAEPF (Indian Airlines Worker Provident Fund) with a total financial investment of around Rs 4,500 crore.
These two funds were recognized under Provident Fund Act 1925.
With this gazette alert, the airline company has finished the process of moving employees from the old PF to the brand-new system.Under the PF Act, 1925, benefit of provident fund was offered however there was no statutory pension or insurance scheme.
The workers utilized to take part in self-contributory annuity-based pension scheme.A guaranteed minimum pension of Rs 1,000 monthly will be readily available to employees and pensions to household and dependents in case of death of employee.An assured insurance benefit in case of death of member will be offered in the range of minimum Rs 2.50 lakh and optimum 7 lakh.No premium is credited the EPFO covered employees for this benefit.The Tata Group has taken control of the debt-ridden airline company from the federal government.
Air India had actually requested EPFO protection, which has actually been permitted, the retirement fund body stated.
EPFO onboards Air India for social security coverage to service the social security needs of their employees.
Air India Ltd obtained willingly covered u/s 1( 4) of the EPF - & MP Act, 1952 which has been enabled ...
with result from December 1, 2021, the labour ministry stated in a declaration issued on Saturday.These employees of Air India now will be entitled to benefits like they will get additional 2 percent employer's contributions in their provident fund (PF) accounts at 12 per cent of their wages.Earlier they were covered under the PF Act of 1925, where the contributions to the PF was at 10 percent by company and 10 per cent by employee.The EPF Plan 1952, EPS 1995 (staff members pension scheme) and EDLI 1976 (group insurance) will now be applicable to the employees.The ministry informed that considering that 1952-53, Air India and Indian Airlines were 2 different companies that were covered under PF Act, 1925.
In 2007, both the companies combined into one company, Air India Ltd.Based on the scheme parameters, the accumulations utilized to be paid to the employees.
There was no minimum pension warranty and no extra benefit in case of death of a member.