New Delhi, Nov 6 (IBNS) Cash-strapped national carrier Air India on Tuesday said it will pay up-to-date salary to its employees before Diwali.
"On the direction from Union Minister of Civil Aviation Shri Ajit Singh, Air India has decided to clear payment of salary to all its employees for the months of September and October 2012 before Diwali," said a statement issued by the Civil Aviation Ministry on Tuesday.
"It will also make up-to-date payment of PLI for all licensed category employees for the months of May and June 2012," the ministry said.
The airline will incur an expenditure of Rs.230 crores for payment of salary and Rs. 200 crores for payment of Productivity-Linked Incentives (PLI).
"The balance PLI for non-licensed category employees for the months of May and June 2012 involving an expenditure of Rs.60 crores will be paid by the end of November 2012. PLI has been abolished w.e.f. 1st July 2012," said the ministry.
Singh, while expressing concern over welfare of employees, has asked Air India to make all efforts in future to make up-to-date payment of salary to the employees.
Air India lost Rs 1,492 crore in 2011-12 on international flights as it used large aircraft even amid a dip in ticket sales.