News: Covid-19: IndiGo rolls back April pay cuts for staff-24-04-2020
Updated On: 24-04-2020
IndiGo was the first airline to announce salary cuts of up to 25% across its workforce.
NEW DELHI: IndiGoNSE -4.34 %, India’s largest and richest airline in terms of cash reserve, today announced that it has reversed the pay cut of up to 25% announced earlier and all its employees will get their full salary for the month of April.
However, top level employees have volunteered to take a pay cut and will forego their salaries till the situation improves. “Let us now turn our attention to the immediate issue of April pay. In deference to our Government’s wishes of not reducing pay during the lockdown, we have decided not to implement the previously announced pay cuts during the month of April. However, your Excom (executive committee) members and SVPs (senior vice presidents) have volunteered to take pay cuts this month. For everyone else, you can expect your April salaries to be paid without the pay cuts,” read an email to its employees from its CEO Rono Dutta.
In an email last month, IndiGo had announced a pay cut of up to 25% from April 1. While other executives above the senior vice president level would take cuts of 20%; vice presidents and pilots would take a 15% cut, while others including cabin crew would take a 5%-10% deductions.
Following IndiGo’s announcement, other airlines had also announced pay cuts. It is, however, unlikely that other airlines will reverse their pay cut decisions, as they are not as cash rich as IndiGo.
Airlines, which are grounded since the lockdown announced by the government to control the spread of Corona virus, have been under financial stress since they are not operating flights.
