10,001-25,000, Rs.25,001-50,000 and Rs.50,001-200,000 will be 35, 40 and 45 percent respectively.

The move follows the Air India board's decision to accept the recommendation of a committee headed by Anup Srivastava, director-personnel, which was constituted recently to review PLI paid to employees.

The latest move is part of a series of cost-cutting measures initiated by Air India in the past few months intended to tackle the financial crunch gripping the carrier.

The airline's current debt is about Rs.16,500 crore with losses standing at Rs.7,200 crore in 2008-09.