AI defers March salary to April 7 | india | Hindustan Times
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AI defers March salary to April 7

india Updated: Mar 26, 2010 21:12 IST
HT Correspondent
HT Correspondent
Hindustan Times
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Air India has intimated to its employees that they would get their March salary on April 7, instead of the last day of March due to year-end financial commitments. As per law, companies can pay wages till 10th of a month.

“Due to heavy financial payout amounting to more than Rs 500 crore to be paid towards banks roll on and payments to oil companies and vendors, salaries would be paid on April 7 and employees have been informed,” an Air India spokesperson said on Friday.

This is the second time in 10 months that Air India has had to pay salary after the end of a month. In June last year, the airline had postponed salaries by 10 days due to fund crunch.

Since October, the airline has been paying salary regularly, including productivity-linked incentives, as cash flow has increased due to the revival in air travel. The airline is in talks for a much talked-about Rs 800 crore fund infusion by the Central government.