In a bid to encourage a significant section of its employees to voluntarily retire, Air India on Wednesday reduced the eligibility age from 55 to 40 and announced a cash incentive.

In a communique sent to employees on Wednesday, the airline said according to the existing regulations of Air India, permanent employees can avail of voluntary retirement if they are of 55 years of age or more and they have worked in the carrier for 20 years.

As an additional benefit, the carrier is reducing the age eligibility from 55 years to 40 years for cabin crew members who are in grades “S-3, S-5, S-7, E-0, E-1, E-2, E-3, E-4 and E-5”, clerical and allied staff who are in grades “S-2, S-5, S-6 and S-7” and unskilled employees who are in grades “S-1, S-2, S-3, S-4 and S-5”, it noted.

“An ex-gratia amount will also be provided to the aforementioned employees, who apply for voluntary retirement from June 1 to July 31 as a one-time benefit,” it said.

Employees who apply for voluntary retirement between June 1 and June 30 will also receive an additional incentive over and above the ex-gratia amount.