COVID-hit AAI defers 50% of perks to staff for 6 months
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The Airports Authority of India (AAI) on Thursday issued an internal order informing employees of deferral of 50% of perks for six months as COVID-19 has resulted in losses for the first time since its inception.
The order comes into effect immediately.
“Taking into consideration the present financial position of the AAI, it has been decided that payment of 50% of perks paid as part of salary be deferred till 31.12.2021 starting from July onwards,” said a circular issued by the Executive Director, Human Resources, R. Prabhu.
AAI employees are paid a lump sum amount equivalent to 35% of their basic pay as perks. A 50% deduction in perks will set an employee back by 17.5% of basic pay.
It adds, “deferment of 50% perks is a temporary measure till December 31, 2021 or till further orders, whichever is earlier and will be reviewed accordingly.”
The decision was taken by the AAI Board at its meeting on July 7 following two rounds of discussions between the management and employees on the issue. The employees have opposed the move and urged the management to take measures to cut down its capital expenditure at various AAI airports. They have also approached the Delhi High Court against the July 7 decision.
According to provisional figures for the financial year 2021, the AAI has incurred a loss of ₹2,800 crore, compared to a profit of ₹1,985 crore in Financial Year 2020.
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