Hospitality company, OYO, has decided to restore the full salaries of its employees in India and South Asia. While those earning a fixed salary of up to Rs 8 lakh per annum will have their salaries restored with effect from August 1, the remaining staff members will see their salaries restored in phases, starting October.
In April this year, OYO had sent some of its employees on leave with limited benefits for four months. A 25 per cent pay cut was also imposed on the workforce from April to July, to tide over the economic crisis brought on by the pandemic. However, the Company had ensured that no employee got less than Rs 5 lakhs per year, post pay cut. As a result, those within the low salary brackets hardly suffered, economically.
Now, the Company plans to restore 12.5 per cent of the total 25 per cent salary cut from October, and the remaining 12.5 per cent with effect from December 2020.
The CEO of OYO India and South Asia expressed his gratitude to the employees during a recent townhall and pushed everyone to put in their best to get the business back on track.
The Hurun Global Unicorn Report 2020 estimates the value of the hospitality chain to be $8 billion, which indicates a fall from the earlier market valuation of $10 billion. Other chains, such as Indian Hotels Co and Lemon Tree have experienced a bigger dip in net worth compared to OYO, which is still the third biggest startup in India, after Paytm and Byju’s, which are valued at $16 billion and $8 billion respectively.