Social Security For Air India Employees Ensured: 7453 Air India Employees Enrolled Under EPFO
The Employees Provident Fund Organisation (EPFO) has onboarded Air India to provide social security benefits to its employees.
The approval was granted on January 13 after the airline applied for voluntary cover under the EPF & MP Act 1952.
The benefits will go to 7,453 employees for whom contributions have been filed by Air India with EPFO for December 2021.
Old PF Laws
From 1952-53 Air India and Indian Airlines were the two separate companies that were covered under PF Act 1925.
They later merged into Air India Ltd in 2007.
How Things Were
Under the PF Act 1925, there was no statutory pension scheme or insurance scheme.
Employees would participate in a self-contributory annuity-based pension scheme and based on the scheme parameters, the accumulations would be paid out to them.
There was no minimum pension guarantee and no extra benefit in case of death of a family member.
New Benefits: Additional Employer’s Contribution
Employees receive an additional 2% employer’s contributions in their Provident Fund Accounts at 12% of their wages.
Earlier under the PF Act of 1925, the employer’s contributions was at 10%.
Schemes Now Applicable
EPF Scheme 1952, EPS 1995 and EDLI 1976 will now be applicable to the employees.
Guaranteed Minimum Pension
A guaranteed minimum pension of Rs 1,000 will be available to employees, their family and dependents in case of the employee’s death.
Insurance Benefit For Deceased Family
Employees are entitled to an assured insurance benefit in the range of minimum Rs.2.50 Lakh and maximum Rs 7 Lakhs in case of death of a family member.
No premium will be charged for this benefit.
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