Air India cuts employee incentive pay by up 40 to 50 percent

Today’s Air India has decided to cut performance-linked incentives of its employees by 40 to 50 percent. Right now Air India has a cost cutting measure affecting over 7,000 of its employees. Today’s Air India has selector asked for employees and after that taken the decision to incentive pay cut is applicable to all officers, including top management, and will range from 25 percent, for those getting (PLI) of 10,000 rupees or less a month, to 50 per cent for those getting incentives of at least 200,000 rupees a month, it said in a statement late on Wednesday. The cut will be effective from PLI payable in August 2009 onwards. Air India has been struggling after it posted a $875 million loss in the fiscal year ended March and has sought a government bailout. The government last month asked the carrier to cut costs and restructure the organization for getting its financial support. Air India is likely to seek Rs 3,000 crore equity infusion from the government.
Air India is also holding talks with various bankers to raise capital. Now a day’s Air India is lot’s of struggling in this time so it has decided to cut performance-linked incentives of all Air India employees.