News: Upto 30 percent pay cuts for SpiceJet employees

Compensation & Benefits

Upto 30 percent pay cuts for SpiceJet employees

As grounding of operations due to Coronavirus impacts the financial of all airlines, including SpiceJet, employees' salaries also gets impacted.
Upto 30 percent pay cuts for SpiceJet employees

The COVID-19 crisis has led  SpiceJet to take a tough decision of a company-wide pay cut for its employees for the month of March, 2020. SpiceJet has implemented a 10-30 percent pay cut for all its employees across top and mid rung levels. However, the airline has assured that its employees in the lowest pay grades will remain unaffected by the decision.

The airline’s Chairman and Managing Director, Ajay Singh, has decided to take the highest cut of 30 percent in salary.

Another report suggests that some staff at SpiceJet, who are entitled to a flying or performance allowance, would be getting their salaries in two parts. "The first part of the salaries was credited today and the second part will be credited on April 2, 2020."

The low-cost carrier added it was going to treat its employees as on "leave without pay" from March 25 to March 31 as the country is under a lockdown to combat the deadly COVID-19 

SpiceJet is not the only airline to announce paycuts, other airlines have also taken similar decisions. What's interesting to note here is that most of the airlines and companies in other sector also have decided to have pay cuts only for senior and mid level. GoAir, for instance announced announced suspension of international operations and offering of leave without pay programme for its staff on a rotational basis. Many CEOs of companies from different sectors have decided to not take salaries for one to three months so that the employees at the lower levels can maintain their financial well-being in times of crisis.

Like a silver lining in a dark cloud, the COVID-19 pandemic has shown how empathy is still alive in the world of work and how the entire community is coming together to support each other. 

Read full story

Topics: Compensation & Benefits, #COVID-19

Did you find this story helpful?

Author

QUICK POLL

What are the top work tech investment focus areas for your company currently?

2 months free subscription
q_auto,f_auto/v1636479037/mag-november-2021.png

Subscribe to all new People Matters HR Magazine

.

Subscribe
And Save 59% plus Two months free

Subscribe now

What is your strategy to augment employee well-being?

READ the November 2021 issue to know from global leaders how to integrate well-being at work