In a landmark development for airline ground staff, a historic wage revision agreement has been finalized between the All India Workers’ Employee Federation (Union) and the AGILE management, benefiting thousands of IndiGo Airlines employees. Under this agreement, the employees will receive the highest annual salary hike in the company’s history, resulting in an estimated additional annual financial impact of ₹120 crore, according to Suhas Mate, General Secretary of the All India Employees Federation.

Agreement achieved under BJP

Mate stated that the agreement was achieved under the guidance of BJP National Executive President and Federation President Ravindra Chavan after successful negotiations with AGILE’s management representatives.

As per the agreement, from April 2025 onwards, IndiGo employees will be paid according to the Central Government’s pay scale structure. This structure ensures uniform benefits for all employees, regardless of their position or length of service.

Annual increase

Additionally, all employees will now receive Variable Dearness Allowance (VDA) twice a year, in April and October, aligned with Central Government rates. Earlier, only a few selected employees were granted VDA based on state government notifications. Mate confirmed that this disparity has now been corrected, ensuring that every employee benefits from the centrally revised VDA rates. The VDA increase will range from ₹500 for unskilled workers to ₹800 for highly skilled staff, resulting in an annual increase between ₹21,000 and ₹1,16,000.

Compared to last year, this year’s wage hike is double. Mate criticized the opposition union, stating that they had negotiated a meagre ₹60 lakh wage increase last year, while the current federation successfully secured ₹11.5 crore in wage benefits for employees. He further accused the opposition union of delaying last year’s hike to October instead of April, causing financial losses to employees, something the current federation rectified through constructive dialogue with management.

Hikes for employees

As part of the new structure, 804 employees with five years of service will receive an additional ₹4,000 increase. Similarly, 1,495 employees with three years of service will receive hikes between ₹5,300 and ₹5,500. Another 693 employees with 3–5 years of service will receive increases ranging from ₹2,500 to ₹3,000, categorized into three service-based groups.

Importantly, the Regional Labour Commissioner has granted official approval to this wage agreement, which Suhas Mate described as the largest of its kind ever implemented for IndiGo’s AGILE workforce. The agreement ensures transparency and fairness in wage distribution and is expected to significantly improve employee satisfaction and retention.