GMR Group cuts employees' salary by up to 50% due to COVID-19 crisis
The world is battling against challenges in the wake of the COVID-19 pandemic,. Almost every industry is facing its brunt. According to the latest news, diversified conglomerate GMR Group has decided to revise downwards employees' salary by up to 50 percent with effect from May. The reduction in compensation is maximum at the highest level,
"As part of the revised structure, the group has done away with the variable component in employees' CTC (cost to company) and replaced it with special performance allowance, which will be treated as a special variable component,"
This would result in a salary reduction of up to 50 percent for various categories of employees, including senior and top management, effective May 2020, the source said.
Responding to an email query, a GMR Group spokesperson confirmed the development saying the employees' compensation has been restructured.
"In view of the challenges faced by the infrastructure sector/industry due to COVID-19, GMR has taken steps to restructure the compensation of employees. A special variable component linked to business performance has been introduced to align with current market conditions," the spokesperson said.
A recent industry report has forecast that airports worldwide are expected to see a decline of more than 4.6 billion passengers and revenue totaling $97 billion (around Rs 7.3 lakh crore) in 2020 amid the coronavirus pandemic.