Air India is seeking to reduce its worker headcount by offering thousands of employees the option of voluntary retirement in order to optimise operations. The carrier is attempting to persuade employees to take the option by providing more benefits and decreasing the retirement age for particular departments.
Air India has implemented a voluntary retirement programme (VRS) for certain of its permanent employees who are 55 years old or have worked for the airline for 20 years. The plan is expected to cover roughly 3,000 staff on the airline's payroll.
“An ex-gratia amount will also be provided to the aforementioned employees, who apply for Voluntary Retirement from 1st June 2022 to 31st July 2022 as a one-time benefit … Further to above, employees who apply for Voluntary Retirement between 1st June and 30th June 2022, will also receive an additional incentive over and above the ex-gratia amount”
The age limit for some employees has also been lowered to 40 years old. Some cabin crew and clerical staff are among them. Pilots, on the other hand, are not covered by this plan.
Around 12,000 people work for Air India, with 8,000 of them permanent and 4,000 on a contract basis. About 5,000 permanent staff were projected to retire during the next five years, according to the government as of October 2021.