Sunday, August 14, 2022

EPFO onboards Air India for social security coverage

Following the takeover of Air India by Tata Group, the Employees’ Provident Fund Organisation (EPFO) has now onboarded the carrier for social security coverage to service the social security needs of its employees.
The social security benefits will be provided to around 7,453 employees for whom contributions have been filed by Air India with the EPFO for the month of December 2021. The employees will receive extra 2 per cent employer’s contribution in their Provident Fund accounts at 12 per cent of their wages.
Earlier, they were covered under the PF Act of 1925, where the employer’s contribution to Provident Fund was at 10 per cent, while 10 per cent was contributed by the employee.
A guaranteed minimum pension of Rs 1,000 will be available to the employees and to the family members and dependents in case of death of an employee.
An assured insurance benefit in case of death of a member will be available in the range of minimum Rs 2.50 Lakh and maximum Rs 7 lakh. No premium is charged from the EPFO covered employees for this benefit.
Since 1952-53, Air India and Indian Airlines were two separate companies which were covered under the PF Act, 1925. In 2007, both the companies merged into one – Air India Ltd.
Under the PF Act, 1925, benefit of Provident Fund was available but there was no statutory pension scheme or insurance scheme.
The employees used to participate in a self-contributory annuity-based pension scheme. Based on the scheme parameters, the accumulations were paid to the employees. There was no minimum pension guarantee and no extra benefit in case of death of a member.


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