Air India scraps payment of performance-linked incentives to its employees

Air India will abolish performance-linked incentives for employees and instead introduce Profit or Productivity Related Pay.

This is part of Air India's wage rationalisation exercise according to the recommendations of the Justice Dharmadhikari Committee.

From July 1, the employees of Air India would now get their salary and allowances as per the Department of Public Enterprises guidelines.

Productivity related pay will be given only after the airline starts making profit and would be determined on the achievement of key performance indicators like yield, aircraft utilisation, passenger load factor, on-time performance and revenue achievement.