Air India cuts employee incentive pay by up to 50%

State-run Air India will cut productivity-linked incentives (PLI) payable to its employees by up to 50 percent, in a cost cutting measure affecting over 7,000 of its employees.

State-run Air India will cut productivity-linked incentives (PLI) payable to its employees by up to 50 percent, in a cost cutting measure affecting over 7,000 of its employees.

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The 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 an $875 million loss in the fiscal year ended March and has sought a government bailout.