Air India, has decided to discontinue payment of Productivity Linked Incentives (PLI) to its employees w.e.f.1st July, 2012. However, the National carrier would introduce Profit, Productivity Related Pay (PRP) in place of PLI to maintain efficient working of employees. An official statement said, the PRP shall be determined on the achievement of Key Performance Indicators like yield, aircraft utilization, passenger load factor, on-time performance and revenue achievement.

PRP shall be given only after the Company starts making profit. The move follows acceptance of the Justice Dharmadhikari Committee Report on pay and wage rationalization.
From 1st July, 2012 onward, employees of Air India shall be paid salary and allowances as per the Department of Public Enterprises (DPE) guidelines. The official release said, the Ministry of Civil Aviation would approach the Union Cabinet for payment of flying allowances and some other allowances to be paid to the pilots, licensed engineers and cabin crews as per the industry standard.

Air India management has already constituted an Implementation-cum-Anomalies Rectification Committee for implementation of pay and allowances to its employees on the basis of recommendation of Justice Dharmadhikari Committee Report. This exercise is expected to be completed by the end of next month.