Muristek
Ravi S SinghNew Delhi, January 29
The Employees Provident Fund Organisation (EPFO) admits Air India in its fold for the provision of benefits of Social Security coverage of its employees.
In effect, this would enable Air India to avail the service of the Social Security needs of their employees.
Air India Ltd applied for inclusion in the scheme under EPF amp; MP Act 1952, which has been upheld by EPFO with effect from December 1, 2021.
The social security benefits will be provided to around 7,453 employees for whom contributions have been filed by Air India with EPFO for the month of December 2021.
In the new dispensation, these employees of Air India will receive an extra 2 per cent employer's contributions in their Provident Fund Accounts at 12 per cent of their wages.
Earlier they were covered under the PF Act of 1925, where the contributions to the Provident Fund was at 10 per cent by employer and 10 per cent by employee,
EPF Scheme 1952, EPS 1995 and EDLI 1976 will now be applicable to the employees.
A guaranteed minimum pension of Rs 1,000 will be available to employees and pensions to family and dependents in case of the death of an employee.
An assured insurance benefit in case of death of a member will be available in the range of minimum Rs 2.50 lakh and maximum Rs 7 lakh. No premium is charged to the EPFO covered employees for this benefit.
Since 1952-53, Air India and Indian Airlines were the two separate companies that were covered under PF Act 1925.
The companies merged under the name Air India Ltd in 2007. Under the PF Act 1925, the benefit of Provident Fund was available but there was no statutory pension scheme or insurance scheme.
The employees used to participate in a self-contributory annuity-based pension scheme. Based on the scheme parameters, the accumulations used to be paid to the employees. There was no minimum pension guarantee and no extra benefit in case of the death of a member.