The All India Workers’ Employee Federation has successfully negotiated a new pay structure that aligns with Central Government salary scales, starting April 2025. The deal, estimated at ₹120 crore annually, aims to ensure fair, structured, and transparent pay revisions for all ground staff.
In a landmark agreement that could redefine wage structures in India’s aviation sector, over 3,000 IndiGo Airlines ground staff employed under AGILE Services are set to receive their biggest ever salary hike.
The newly introduced salary structure will be aligned with Central Government pay scales, replacing the previously inconsistent compensation practices. This move brings standardisation across roles and tenure, ensuring equal pay and addressing long-standing disparities among ground-level employees.
A key feature of the agreement is the introduction of a biannual Variable Dearness Allowance (VDA). Paid every April and October, the VDA will be calculated based on Central Government rates. All eligible employees will receive VDA increments ranging from ₹500 to ₹800 monthly, amounting to annual gains of ₹21,000 to ₹1,16,000 depending on the pay scale and inflation adjustments.
The revised wage structure introduces clear and predictable salary increments based on the number of years an employee has served.
This structured framework promotes transparency and encourages longer employee retention.
The agreement has been formally approved by the Regional Labour Commissioner, ensuring regulatory compliance and providing legal support to the revised pay structure. Federation General Secretary Suhas Mate described the deal as a fair and historic revision that corrects years of wage disparities. In contrast, last year’s modest ₹60 lakh hike by other unions lacked this level of structure and impact.
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This milestone move is not just a financial win for IndiGo’s ground staff but also a strong message in support of organised labour and fair employee compensation. The structured approach, alignment with national standards, and regular VDA adjustments could serve as a blueprint for wage reforms in other private sector industries.
This biggest-ever salary hike for AGILE ground staff marks a major shift in compensation practices in India’s aviation sector. It could boost morale, improve efficiency, and enhance service quality.
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Published on: Jun 24, 2025, 3:58 PM IST
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