Despite suffering monthly losses of Rs12 billion and accumulating a total loss of over Rs740 billion, Pakistan International Airlines (PIA) has announced its intention to provide an increment bonus to its employees in recognition of their “good” performance.
PIA’s management has made this decision to acknowledge the dedication and efforts of its employees, particularly for their positive financial contributions from April to September of the current year.
The increment bonus will take effect from October 1, 2023, and the amount will be based on a bonus structure issued in 2022.
According to PIA’s statement, the increment bonus will range from 5% to 10% of the salary earned as of March 31, 2023. Notably, employees who have tendered their resignation on or before October 2023 will not be eligible for this bonus. Additionally, recently recruited employees, those who have received promotions or salary increases between April 1, 2022, and September 30, 2023, will not qualify for the increment. Similarly, employees facing disciplinary cases will not be eligible for this bonus.
It’s worth noting that this bonus announcement comes at a surprising time, considering PIA’s ongoing challenges in maintaining operations, particularly due to frequent fuel shortages.
The airline’s monthly income stands at Rs22 billion, while its expenses amount to Rs34 billion. The total accumulated losses of PIA have reached a staggering Rs740 billion. The airline has borrowed Rs260 billion from commercial banks, guaranteed by the government, and is not paying Rs1.25 billion in taxes to the Federal Board of Revenue (FBR).
Given these financial difficulties and operational challenges, the decision to grant employee bonuses has raised eyebrows and generated criticism, making it appear as if the airline’s priorities are misplaced.
