Air India slashes employee allowances by 20-50%

Reeling under the covid-19 pandemic, national carrier Air India Ltd has initiated a pay cut for its employees, which involves trimming down allowances by 20-50%, according to a circular issued by the airline on Wednesday.

The decision comes a day after the country’s largest domestic airline, IndiGo said it will lay off 10% of its workforce to pull through the disruptions caused by covid-19 pandemic.

According to the circular, while various allowances for pilots will be reduced by 40% percent, other allowances for others like general category officers and staff will be reduced by 30-50%. Cabin crew will have several allowances cut by 20%.