Air India employees can expect a cut in their July salary. The performance linked incentives will no longer feature in their pay till such time the airline is profitable.
It is time for Air India employees to brace for a salary cut as the government has decided to discontinue payment of the performance-linked incentive (PLI), also referred within the airline as 'productivity related pay' or PRP which will be doled out only when the national carrier turns profitable.
The payment of PLI will be discontinued with effect from July 1, 2012.
An official statement from the ministry of civil aviation said: "Productivity Related Pay shall be determined on the achievement of Key Performance Indicators (KPIs) like yield, aircraft utilisation, passenger load factor, on-time performance and revenue achievement. PRP shall be given only after the company starts making profit."
The move will impact the upper rungs in the organisation. "The highly paid employees like pilots and engineers will be more impacted by slashing of the PLI component as it forms a larger part of their salaries," a senior official with Air India said.