The employees of Reliance Industries, who did not get any increments last year, can look forward to a pay hike of 10 to 12 per cent now. The Company has announced an increment for its entire staff.
Last year, RIL gave no hikes to its staff. In fact, it had announced salary cuts, which were restored soon after, so the salaries of the employees were not actually affected in any way.
The Company had announced a pay cut of 10 per cent for those earning over Rs 15 lakh in the petrochemicals division. Hikes were not given across businesses considering the uncertainties brought about by the pandemic and the effect it had on the Group. In April 2020, employees of its hydrocarbons division faced a 10 to 50 per cent pay cut, with Mukesh Ambani, the Group’s chairman, foregoing his entire salary, of about Rs 15 crore. The annual cash bonus and performance-linked incentives were also deferred, which, as a normal practice are paid in the first quarter. The board of directors, including executive directors, executive committee members, and senior leaders, had also relinquished 30 to 50 per cent of their salaries.
However, later, in October, the Company offered 30 per cent of the variable pay from the next year’s salary to employees in advance, in appreciation for their hard work during the pandemic.
The Company not only restored the salaries of its employees but also paid the difference. This move was seen as a very positive sign by India Inc. and the country’s economy.
Earlier, in June, the Company had announced that it would pay five years’ salary to the families (or nominee) of employees who lost their lives to COVID-19.