PIA Expects 2,500 Employees to Resign By December 31st 2020 - Android

Pakistan International Airlines (PIA) has announced a Voluntary Separation Scheme (VSS). In layman’s terms, VSS is a policy where the… Read More

The post PIA Expects 2,500 Employees to Resign By December 31st 2020 appeared first on .

Pakistan International Airlines (PIA) has announced a Voluntary Separation Scheme (VSS).

In layman’s terms, VSS is a policy where the employees of a company are allowed to resign voluntarily from an organization by receiving fair compensation.

PIA has given a two-week deadline (until December 22) to employees for a decision. The package compensation offered by PIA includes accumulated leaves, gratuity, provident fund, lump-sum medical, and pension up to the age of 65 years.

Although the allowed time limit appears to be a very short deadline, PIA’s Spokesman Hafeez Khan said he believes that ample time has been given.

Interested employees will have to submit the VSS application form along with a signed VSS package report to the concerned coordinators for the scheme, assigned at facilitation desks established at each station.

The spokesperson said,

The last working day of the VSS accepted employees shall be December 31, 2020, whereas the expected date of receiving payout cheque shall be on or before January 31, 2021.

The VSS package has been divided into two categories: over 18 years of service and below 18 years of service. “Different basic pay formula has been devised as per salary break-up and service years of employees including pilots and engineers,” the spokesman said.

All regular employees under the age of 58 years as of November 30, 2020, are eligible to participate in this VSS. Non-regular and contractual employees and those employees who have already resigned or opted for early retirements will not be eligible. Employees who are under any litigation against PIA will only become eligible for the scheme after they withdraw the litigation latest by December 31, 2020.

Speaking to media, he said that the company received 11 applications within two hours after offering the VSS. He said, “Employees have already made up their minds”, adding the VSS was announced at 4 p.m. late afternoon. “We are expecting 2,500 employees to opt for VSS,” he said.

The spokesperson shared that the restructuring plan announced by the government for PIA aims to reduce the workforce of the loss-making entity by half, and Rs. 12.69 billion has been set aside for VSS.

Currently, PIA has approximately 13,000 regular employees, including daily wagers and contractual workers. The number of employees on regular payroll in PIA is approximately 10,500 and according to the spokesperson, “By next year, we will probably have 7,500 regular employees”.

He informed that in 2019, PIA incurred north of Rs. 56 billion in losses and that is just an extension of the past decade’s loss accumulation.

The post PIA Expects 2,500 Employees to Resign By December 31st 2020 appeared first on .