EPFO onboards Air India to offer social security coverage to employees

New Delhi: Employees Provident Fund Organisation (EPFO) has onboarded Air India to offer social security coverage to the carrier’s employees. More than 7,400 employees of Air India for whom contributions have been filed by Air India with EPFO for the month of December 2021 will start receiving the benefits. 

Here’s the list of benefits to be received by Air India benefits under 

- Air India employees will receive an extra 2% of employer’s contributions in their Provident Fund Accounts at 12% of their wages. Previously, Air India employees were covered under the PF Act of 1925, where the contributions to the Provident Fund was at 10% by the employer and 10% by the employee.

- Moreover, EPF Scheme 1952, EPS 1995 and EDLI 1976 will now be applicable to Air India employees.

- Also, Air India employees will receive a guaranteed Rs 1000 pension. In case of the death of the employee, the workers’ family members will continue receiving the benefits. 

- The sum assured insurance benefit in case of death of a member will be in the range of minimum Rs 2.50 Lakh and a maximum of Rs 7 Lakhs. No additional premium is charged to the EPFO covered employees for this benefit.

According to a report by PIB, Air India and Indian Airlines, since 1952-53, were two separate firms covered under the PF Act 1925. In 2007, both the firms were merged into a single firm - Air India Ltd. Also Read: Budget 2022: 5 Union Budget tradition changes introduced for first time under Modi government

While the employees enjoyed the perks of the Provident Fund, the benefits of a statutory pension scheme or insurance Scheme were missed. There were other self-contributory annuity-based pension schemes in which employees had voluntarily invested. Also Read: WhatsApp chief said THIS about launching an iPad app