Air India has recently revised its policy regarding the accumulation of privilege leaves for employees nearing retirement in the current and upcoming financial years. The Tata group-owned airline had initially adjusted the privilege leave policy in March to align it with prevailing market conditions. As per the revised policy, all employees were limited to accumulating 60 days of privilege leaves in a given financial year starting from April 1.
However, considering the concerns raised by employees approaching retirement, Campbell Wilson, CEO and managing director, Air India, announced a relaxation for such individuals. In a message to the staff, he mentioned that the airline had previously decided that any privilege leaves exceeding 60 days would be encashed. But, following discussions with external tax authorities, Air India was able to reach an agreement to defer encashment of privilege leaves beyond 60 days for those retiring in the next two financial years (FY 2023-24 and 2024-25). Unfortunately, they were unable to secure the same ability for employees retiring after this period, despite their efforts.
This decision is expected to benefit employees nearing superannuation by providing them with improved retirement benefits. The relaxation allows for tax exemption on encashment of leaves up to Rs 25 lakh during retirement, and eligible employees can now avail this benefit.
In the meantime, Air India is actively working on a five-year transformation plan called ‘Vihaan.AI’. Over the coming months, Campbell Wilson and other members of the management and Vihaan project teams will be traveling to different cities across the country to engage with employees personally.
