Air India will be paying its employees Rs4.3 billion ($79.2 million) in owed salaries and incentives by 13 November, under the direction of the country's civil aviation minister Ajit Singh.
The amount covers Rs2.3 billion in employee salaries for the months of September and October, and performance-linked incentives amounting to Rs2 billion for licensed employees such as pilots, cabin crew and engineers for May and June.
The flag carrier will also pay the remaining Rs600 million in owed incentives for May and June by end-November.
Singh, expressing concern over the welfare of employees, has also asked Air India to "make all efforts" to ensure that salaries are paid on time.
In September, the airline also made payments of Rs2.3 billion in owed salaries and incentives to its employees.