Delta Airlines to increase pay and pension contributions

Delta Airlines is to increase its base pay for most employees and enhance its matching contributions to employees’ 401(k) plans.

From 1 December 2015, all eligible merit, ground and flight attendant employees globally will receive a base pay increase of 14.5%

Delta will also increase its 401(k) dollar-for-dollar match from 5& to 6% from 1 January 2016. With automatic and matching contributions from the airline, which together can equal up to 8% of employee earnings, the total will add up to 14% of an employee’s earnings.

Delta Airlines-pay benefits-2015

The organisation is also keeping a profit-sharing plan it has in place for workers, through which it shares 10% of its profits with employees until it matches its prior-year profitability and then pays 20% of profits, with no limit.

Over the past two years Delta has returned over $3 billion to shareholders and has reduced its debt by $10 billion, so wanted to reward its employees in line with this.

In a memo to employees, Richard Anderson, chief executive officer, and Ed Bastian, president, of Delta Airlines, said: “When combined with the April (annual pay) increases, pay rates for most employees will be up 18% or more in 2015, providing [staff] with record pay rises in a year of record profits. Few [organisations] can match that.”