10-50% pay cut for staff of KPIT Technologies

The IT firm has been issued a notice by the Labour Commission for imposing pay cuts.

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KPIT Technologies, the Indian multinational company based in Pune, will be deducting 10 to 50 per cent of the salaries of its employees as part of cost-cutting measures to stabilise the business. More than 6000 members of the workforce of the Company, which supplies software to automotive companies, will be impacted. However, KPIT has been issued a notice by the Pune Labour Commission, because as per directives issued by the Maharashtra government, no company can terminate employees during lockdown or deduct their pay.

According to the Company’s CEO, the move has been resorted to in order to save the jobs of the staff. While the chairman of the Company will not receive any variable component, the rest of the workforce will be facing a salary cut in the range of 10 to 50 per cent, on the basis of the band they fall into. The salaries will reportedly be deducted from April to September.

An official mail stated that the compensation structure will also undergo change, as variable pay and special allowance will be cut, on the basis of the job band. And the remaining amount will be cut from the fixed salary.

The National Information Technology Senate (NITES) reveals that over 200 employees have been told to work part-time, while their salaries have been deducted by 50 per cent.

It is NITES that approached the Labour Commission with a complaint against KPIT Technologies, following which a notice was sent to the Company.