SpiceJet, one of India’s major low-cost airlines, has announced a delay in the disbursement of June salaries to its employees. This news comes in the wake of the airline’s recent defaults on provident fund commitments.
The airline, which holds a 4% market share, has struggled with financial challenges. According to The Economic Times, SpiceJet has not made a provident fund deposit since January 2022, affecting 11,581 employees. This delay has led to several notices and summons from the Employees’ Provident Fund Organisation (EPFO), which remain unaddressed.
With over 8,000 employees, SpiceJet has assured that salaries are being paid in a “phased manner.” A company spokesperson stated that 95% of employees have already received their June salaries. This staggered payment approach has reportedly been a standard practice over the past four years, particularly since the COVID-19 pandemic.
Employees have expressed concerns, noting that provident fund contributions for recent months have also not been deposited. A cabin crew member highlighted these ongoing issues, emphasizing the financial strain faced by staff.
SpiceJet has acknowledged the delays and emphasized that clearing dues is a top priority. However, the airline’s ongoing financial difficulties, including the failure to deposit provident fund amounts for over two years, have raised concerns about its future stability.
As of 10:50 AM, shares of SpiceJet were trading 1.47% lower at ₹56.98 on NSE.
