In a cost cutting measure, Air India is going to cut productivity linked incentives (PLI) to its employees by up to 50 per cent. The measure will affect over 7, 000 employees.
In a statement released late Wednesday, Air India said that the incentive pay cut is applicable to all officers, including top management, and will range from 25 per cent, for those getting PLI of Rs 10,000 or less a month, to 50 per cent for those getting incentives of at least Rs 200,000 a month.
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.