InvestorQ : What is the VRS scheme that Air India has proposed to its employees?
Arusha Ray made post

What is the VRS scheme that Air India has proposed to its employees?

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1 month ago
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The rationalization of manpower at Air India had to commence and the first step has been taken. As you must be aware, Air India is now owned by Tata Sons, the holding company of the Tata group. They have just announced a VRS for its employees. The idea of this scheme is to prune the total head count and reduce overheads. As on date, Air India has around 9,426 employees on a permanent basis on its rolls.

The VRS would be open to all the permanent employees above 55 years of age or those who have already completed 20 years of service. For the cabin crew, clerical and unskilled workforce, this has been further relaxed to 40 years of age. As per the VRS scheme announced, those who opt for the VRS will also get an additional incentive above the ex-gratia amount. Air India is still recruiting key middle level and senior personnel.

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