GVK Group slashes up to 30% salaries w.e.f May

Executives with gross annual pay of over Rs 25 lakh will take a 20 per cent cut, while senior and top managers will take the maximum cut of 30 per cent.

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GVK Group has slashed up to 30 per cent salaries of over 1800 employees across verticals. The Indian conglomerate dealing in energy, resources, airports, transportation, hospitality and life sciences, was forced to take this drastic step because of the economic impact of the coronavirus pandemic.

It has been reported by PTI, that the Group has deducted salaries of its employees by 10 to 30 per cent, with effect from May. From now on, employees with a cost-to-company (CTC) of over Rs 10 lakh and up to Rs 25 lakh per annum will take a 10 per cent cut. Executives whose gross annual pay exceeds Rs 25 lakh will take a 20 per cent cut.

The senior and top managers will be taking the maximum cut of 30 per cent.

Incidentally, GVK leads a consortium in collaboration with the Airports Authority of India, that handles the management and operations of the country’s busiest airport, the Chhatrapati Shivaji Maharaj international Airport of Mumbai.

The move to restructure the salaries of the staff was resorted to keeping in mind the difficulties being faced by the infrastructure industry.

In the last two months, many companies across sectors have had to resort to layoffs, salary cuts, deferred payments and even sending staff on leave without pay, just to stay afloat and sustain their respective revenues and businesses in the long term.

Rival group, GMR, has also reportedly deducted 50 per cent pay of its staff from May onwards.

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