Air India has announced annual salary increments and a new performance bonus structure for its employees. This marks the first appraisal process since Tata Group acquired the airline over two years ago. According to PTI, the salary increments will take effect from April 1, 2024, with monthly hikes ranging from Rs 5,000 to Rs 15,000 for pilots, depending on their experience and position.
The airline's Chief Human Resources Officer, Ravindra Kumar GP, revealed that the annual target performance bonus for pilots could reach up to Rs 1.80 lakh. This bonus will be based on both company and individual performance and is set to be implemented starting FY 2024-25.
The new appraisal system, called Rise.AI, applies to all employees who joined before December 31, 2023, including ground staff, cabin crew, and pilots. Under the new structure, first officers and captains will receive a monthly fixed pay increase of Rs 5,000 each, while commanders and senior commanders will see increases of Rs 11,000 and Rs 15,000, respectively. Junior first officers, however, will not receive a hike in their monthly fixed pay.
The performance bonuses will be distributed annually, contingent upon meeting performance expectations. Junior first officers will receive an annual bonus of Rs 42,000, while first officers and commanders will get Rs 60,000. Commanders and senior commanders will receive Rs 1.32 lakh and Rs 1.80 lakh, respectively.
Air India, currently undergoing a five-year transformation plan known as Vihaan.AI, aims to foster a performance-driven and meritocratic culture. The airline, with approximately 18,000 employees, is focused on competitive salary increments to attract and retain talent. Last year, the company restructured compensation and contracts for legacy employees but did not conduct appraisals.
As part of its transformation, Air India is also simplifying its compensation structure to be more market-competitive and productivity-oriented. The Vihaan.AI plan outlines the airline's strategic vision and growth objectives, with significant milestones achieved in the past year laying a strong foundation for future growth.
Air India operates as part of a larger group that includes Air India Express, AIX Connect (formerly AirAsia India), and Vistara, with ongoing mergers within the group to streamline operations.
[With PTI inputs]
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