SpiceJet Delays June Salaries Amid Provident Fund Payment Issues, Faces Financial Turbulence

SpiceJet, India’s sixth-largest airline with a 4% market share, has delayed paying June salaries due to financial troubles, according to The Economic Times. This comes after the airline failed to make provident fund (PF) payments, the last of which was in January 2022 for 11,581 employees, as reported by Business Standard on July 8.

The Employees’ Provident Fund Organisation (EPFO) has sent multiple notices to the Gurgaon-based airline about the unpaid dues, but SpiceJet has not responded. The airline, which has over 8,000 employees, claims it is distributing salaries in phases. However, many employees reported not receiving their June salaries on time.

A cabin crew member mentioned that PF payments for the past few months have also not been credited. A SpiceJet spokesperson confirmed that 95% of employees have received their June salaries, stating this phased approach has been in place for four years, especially since the Covid pandemic.

The airline admits delays in depositing the PF amount for the last month and insists that clearing these dues is a top priority. Facing a severe financial crisis, SpiceJet’s shares have dropped by 4.63% in the past year.