Reliance Industries rolls back salary cuts, doles out performance bonus
Mukesh Ambani-led Reliance Industries Ltd (RIL) is rolling back salary cuts for its employees and restoring them to the pre-COVID levels retrospectively.
With 3.5 lakh direct employees in the group’s many businesses, the retrospective salary restoration and arrears would put money in the hands of the group’s employees during the festive season.
RIL is also giving out performance bonuses to employees of the hydrocarbons division that had been deferred in view of the Coronavirus-led uncertainties. The conglomerate is also offering an advance of 30 percent of the variable pay from the next year's salary to its lakh-plus employees as a goodwill gesture.
It was in April that Reliance had cut the salary of employees of its hydrocarbons division by 10 percent to 50 percent with Chairman Mukesh Ambani forgoing all his remuneration for the financial year. The oil-to-technology conglomerate had also deferred annual cash bonuses and performance-linked incentives.
While Ambani forgo his entire Rs 15 Cr compensation, Reliance board of directors including executive directors, executive committee members, and senior leaders saw a sizable cut of 30%-50% in their pay. Employees with compensation of less than Rs 15 lakh did not have any reduction in compensation but those earning higher than that saw a 10 percent reduction in fixed pay.
By not just restoring salaries to previous levels but also returning the difference, one of India’s largest companies marks the gradual recovery of the Indian industry’s recovery from the Coronavirus slump. Many other firms have also started rolling back cuts and firms such as TCS, HCL Technologies are offering salary hikes, providing a major relief to employees ahead of the festive season.