Indigo senior leadership to take increased pay cut

As part of further measures to reserve cash outflow, Indigo increased pay cut for senior leadership up to 35 per cent .


Ronojoy Dutta, CEO, Indigo, informed employees via an email that he was increasing his personal pay cut by 10 per cent and urged all senior leadership members to do the same. 

According to the revised cuts, Dutta will be taking a 35 per cent personal pay cut, senior vice presidents and above will take a 30 per cent pay cut, vice presidents will have their salaries reduced by up to 25 per cent and associate vice presidents will face a deduction of 15 per cent. For the pilots, the pay cut will be increased to 28 per cent. The new pay cuts will be applicable from September 1. 

From May onwards, the airline had implemented pay cuts of up to 25 per cent for its senior leadership. On July 20, it had announced that it would lay off 10 per cent of its workforce as a part of cost-cutting measures. 

Prior to the revised pay cut, the CEO took a 25 per cent personal cut, senior vice presidents took a 20 per cent cut, vice presidents took 15 per cent and associate vice presidents took a 10 per cent cut. 

For the first time in history, Indigo had to resort to shrinking its workforce. However, even though it had to let employees go, it did so with consideration and care. As a part of the severance package the laid off employees were offered one month’s CTC for every completed year of service, applicable for a maximum of 12 months. All employees will receive a personalised recommendation letter, an outplacement allowance to help them seek professional help outside to look for jobs and an extension of medical insurance coverage till December 2020. 

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