In view of the acceptance of the Justice Dharmadhikari Committee Report on pay and wage rationalization of Air India by the Union Civil Aviation Minister Shri Ajit Singh, it has been decided to discontinue payment of Productivity Linked Incentives (PLI) to the employees of Air India w.e.f.1st July, 2012. From 1st July, 2012 onward, employees of Air India shall be paid salary and allowances as per the Department of Public Enterprises (DPE) guidelines. However, Ministry of Civil Aviation shall approach the Union Cabinet for payment of flying allowances and some other allowances to be paid to the pilots, licensed engineers and cabin crews as per the industry standard.

As per Justice Dharmadhikari Committee recommendations, Profit/ Productivity Related Pay (PRP) would be introduced in place of PLI to maintain efficient working of employees. However, PRP shall be determined on the achievement of Key Performance Indicators (KPIs) like yield, aircraft utilization, passenger load factor, on-time performance and revenue achievement. PRP shall be given only after the Company starts making profit.

Air India management has already constituted an Implementation-cum-Anomalies Rectification Committee for implementation of pay and allowances to its employees on the basis of recommendation of Justice Dharmadhikari Committee Report. This exercise is expected to be completed by the end of next month.