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The ministry knowledgeable that since 1952-53, Air India and Indian Airways had been two separate corporations that had been coated underneath PF Act, 1925. In 2007, each the businesses merged into one firm, Air India Ltd.
Retirement fund physique EPFO has onboarded Air India Ltd for social safety advantages like PF, pension and insurance coverage and has obtained contributions for about 7,453 staff for the month of December from the airline, a labour ministry assertion stated on Saturday.
The Tata Group took over the debt-ridden airline from the Authorities of India. Air India had utilized for EPFO protection, which has been allowed, the retirement fund physique stated.
“EPFO (Workers’ Provident Fund Organisation) onboards Air India for social safety protection to service the social safety wants of their staff. Air India Ltd utilized for voluntarily coated u/s 1(4) of the EPF & MP Act, 1952 which has been allowed vide gazette notification on January 13, 2022 — with impact from December 1, 2021,” the ministry assertion stated.
The social safety advantages might be supplied to round 7,453 staff for whom contributions have been filed by Air India with EPFO for the month of December 2021, it added.
These staff of Air India now might be entitled to advantages like they are going to obtain additional 2 per cent employer’s contributions of their provident fund (PF) accounts at 12 per cent of their wages.
Earlier they had been coated underneath the PF Act of 1925, the place the contributions to the PF was at 10 per cent by employer and 10 per cent by worker.
The EPF Scheme 1952, EPS 1995 (staff pension scheme) and EDLI 1976 (group insurance coverage) will now be relevant to the staff.
A assured minimal pension of Rs 1,000 monthly might be accessible to staff and pensions to household and dependents in case of demise of worker.
An assured insurance coverage profit in case of demise of member might be accessible within the vary of minimal Rs 2.50 lakh and most 7 lakh.
No premium is charged to the EPFO coated staff for this profit.
The ministry knowledgeable that since 1952-53, Air India and Indian Airways had been two separate corporations that had been coated underneath PF Act, 1925. In 2007, each the businesses merged into one firm, Air India Ltd.
Beneath the PF Act, 1925, good thing about provident fund was accessible however there was no statutory pension scheme or insurance coverage scheme. The workers used to take part in self-contributory annuity-based pension scheme.
Based mostly on the scheme parameters, the accumulations was paid to the staff. There was no minimal pension assure and no additional profit in case of demise of a member.
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