IndiGo Salary Cut: IndiGo announces ‘deep’ pay cut of up to 35% for senior employees. India Business News

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NEW DELHI: IndiGo said on Monday that it is implementing an “intensive” pay cut of up to 35 percent for its senior employees to reduce its cash outflow amid the coronomy epidemic.
Since May, Indigo implemented a pay cut of up to 25 percent for its senior employees.
The airline’s announcement on 20 July was followed by a “deep” pay cut, which is 10 percent of its workforce due to the economic crisis caused by the epidemic.
In an e-mail on Monday, IndiGo CEO Ronjoy Dutta told employees, “I will increase my personal pay cut percentage to 35 percent. I will take a 30 percent pay cut from all senior vice presidents and above employees, all pilots.” I am looking for. See that their rate of pay cuts has gone up to 28 percent, all the vice-presidents will cut the salary by 25 percent and the associate vice-presidents will cut the salary by 15 percent. ”

He said that these increased salary cuts will come into effect from 1 September.
The aviation sector has been greatly affected by travel restrictions imposed in India and other countries in the wake of the coronavirus epidemic. All airlines in India have taken cost-cutting measures such as pay cuts, pay without leave and lay-offs to conserve cash.
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Prior to Monday’s announcement, IndiGo CEO Dutta cut salary by 25 percent. The salary cut was 20 percent for senior vice presidents, 15 percent for vice presidents, and 10 percent for associate vice presidents.
In May, IndiGo also cut the salaries of Band D employees and cabin crew members by 10 percent and Band C employees by 5 percent.
The salaries of employees in Band B and Band A were not touched. Most of the airline’s employees are in Band B and Band A.
Dutta’s Monday announcement does not affect the cuts in salaries of Band D employees, Band C employees and cabin crew members in May. Also, no cuts were announced for Band B and Band A employees on Monday.
In May, Indigo also implemented a compulsory leave for its employees without pay (LWP) scheme for five days per month. This was increased to 10.5 days per month in August.
“We are not making any changes for the August LWP and from September each department will decide on the LWP for each month based on workload and staffing levels,” Dutta said on Monday.
He said, “You can expect to communicate directly with your department head on LWP every month. It is my sincere hope that the environment is favorable for us to quickly add capacity back and reduce LWP to zero.”
India resumed domestic passenger flights from 25 May after a two-month hiatus due to the coronavirus epidemic. However, airlines are allowed to operate a maximum of 45 percent of their pre-Kovid domestic flights.
The business rate for Indian domestic flights from May 25 is around 50-60 percent.
Scheduled international passenger flights to India remain suspended since 23 March.

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