Is SpiceJet not depositing PF in staff accounts?

SpiceJet is reportedly not depositing the provident fund (PF) in the accounts of its employees. It is alleged that the Airline has defaulted on depositing the tax deducted at source (TDS) too, reports Times Of India.

The airline, however, claims that it has not defaulted on any statutory payments, but does admit that delays have happened in making payments. It says it has been clearing dues and pending payments and discharging GST liabilities regularly.

The Company is set to receive over Rs 200 crore under the emergency credit line guarantee scheme (ECLGS). This amount will be used by SpiceJet to clear all dues and payments.

In the quarter ended June, the Airline posted a loss of Rs 789 crore. This was more than the loss of Rs 729 crore during the same quarter last year.

Only last week it was reported that many employees, including flight crew hadn’t received their July salaries. They had also not received their Form 16 for FY 2021-22, as some employees had reportedly claimed. While staff did receive salaries on time in June, their salaries have not been restored to pre-COVID levels yet.

Captains and first officers are apparently getting less than half their pre-COVID salaries. Several pilots have quit recently because of less than satisfactory salaries, irregularities, delay in payment of salaries and also because some had to pay higher tax due to tax and PF inconsistencies in their payslips.

The Airline, however, claims that salaries are being paid in a ‘graded format’. It had said that the salaries for August will be paid in a staggered fashion, beginning August end and going up till the middle of September.

Presently, SpiceJet is operating less than half its flights following an order issued by the Directorate General of Civil Aviation (DGCA), given the string of snags the airline has experienced.