IndiGo to pay full salaries to majority of employees; revokes announcement of pay cuts

The senior employees and senior VPs have, however, volunteered to take pay cuts in April.

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Low-cost carrier (LCC), IndiGo, has revoked its earlier announcement of pay-cuts during the month of April. It has now decided to pay full salaries to most of its employees. The Company had announced graded pay cuts of up to 25 per cent in March, for all employees sparing the junior ones.

In an internal circular sent on March 19, Ronojoy Dutta, CEO, Indigo, told employees that they have taken this step in compliance with the Government’s mandate to not reduce pay during the lockdown. The senior employees and senior VPs of the organisation, on the other hand, have volunteered to take pay cuts this month.

Dutta, however, has taken a 25 per cent pay cut as the CEO, while for senior VPs and above, the cut is 20 per cent and for VPs and pilots, the cut is 15 per cent. For the cabin crew it is 10 per cent and for others, above junior levels, the pay cut is five per cent.

Raj Raghavan, SVP-HR, Indigo, says, “I think the decision we have taken for our employees is a good one.”

Dutta, in his email, thanked the employees who are running cargo operations for the LCC. At the moment, cargo is the only source of revenue for the organisation. He advised his employees to not fret about the future too much and focus more on personal health.

He also mentioned that the Company is trying its best to focus on managing costs at a time when revenues are low, and is working on shaping the future of the flying experience, once the lockdown lifts.

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